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Another hidden gems revocered by Sam Goh...
JB
Foods
welcomes
strategic
investment
by
leading
food
manufacturer,
Tee
Yih
Jia
Henry$$$ ( Date: 06-Dec-2012 19:51) Posted:
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Pls drop more..............
Etika recovered by Sam Goi Seng Hui.
Yes.....agreed with you Bro.......
The name .....JB Food .....fungshui not good i think......should change name
to Apple Food.......sure cheong......
http://www.bloomberg.com/quote/JBF:SP
Its foundamental seems good. I opt to believe the account of Malaysian Chinese companies is realiable. If so, the long term return is rather handsome. Its corner investor also sound, and possible for it to expend further.
Its competitor, Petra foods, Guan Chong surges more than 100% from its low. My target price is > 60cents.
Ex dividend is on 3 Oct and payout date is 17 Oct.
I think JB Foods is a good bet with very handsome returns in the medium to long term given that the company is paying at least 2 cents (S$) for the financial year. PER is only 4.7 compared to Guan Chong Bhd at 7.8 and Petra Foods at 19.2. Now at price of $0.3 is very very cheap, logically speaking. Some companies listed don't make any profit for years but the price of the share are ridiculously high, why?????? I believe ultimately companies with good fundamentals will win the race.
whencanchange ( Date: 14-Sep-2012 23:14) Posted:
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1 cents div like not back
seeing that inside shareholder brought more 500k shares which is more interest in it...
given it a now 0.295 is a steal!!
whencanchange ( Date: 14-Sep-2012 23:14) Posted:
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Below are some of sharp questions posted on Investor Central.
1. The company will use S$8.3 mln of the IPO proceeds to repay its short-term loans taken for expansion of capacity in Malaysia. One of the loans is due for repayment in next couple of months. Why did it not borrow funds for a longer period in the first place? Did it raise IPO only because it couldn’t refinance these loans?
2. Cash from operations fell dramatically in 2011 due to a steep rise in its trade receivables. Why did trade receivables rise more than 100%, even as revenue grew only 37%? Are its customers having troubles in paying their dues?
3. While the company is using a part of IPO proceeds to repay loans for expansion, it could have easily repaid them with the dividend declared in 2011 alone! Why didn’t it do so as the promoters were already drawing salaries from the company?
4. The management intends to distribute at least 30% of its profits in 2012. But it doesn’t follow a fixed dividend policy. In the last two years, the company has distributed 70.6% and 58.8% of net profits as dividend. Why such drop in dividends for 2012?
5. JB Foods was established in Malaysia 30 years ago. By incorporating and listing in Singapore, it will end up with greater tax liability and currency translation risk. So, why did it not seek a listing on Bursa Malaysia instead?
6. Given its foreign exchange exposure, and the strengthening ringgit, it's no surprise the company tried to hedge its forex exposure. But it doesn't look like it's getting it right. Why did the company lose RM2.3 mln in fair value of derivative financial instruments in 2011?
7. The prospectus states market share figures for 2010. What was its market share in Malaysia in 2011? Why didn’t the prospectus share the latest figures?
8. If palm oil is such a growing competitor against cocoa, why not expand into palm oil processing?
9. The family that started JB Foods owns its stake in the company through its family holding firm JBC Group. The former name of JBC Group was Guan Chong Food Industries, a remarkably similar name to Guan Chong Cocoa Manufacturing Sdn Bhd, which is listed in the prospectus as a competitor to JB Foods. So the question is: does the family own and/or control a direct competitor to JB Foods? If so, how can we be sure the family will act in the best interests of JB Foods?
10. How is demand from its major markets Western Europe and the US holding up, in view of the ongoing debt crisis?
11. JB Foods plans to setup a laboratory by 2014. How much does it plan to spend on its R& D annually?
12. How certain is the management about exercising the call options for PT Koko and Kakao GmbH? What is the value of these two companies and how much will JB Foods spend if it were to acquire these companies?
13. The company’s ‘other expenses’ for 2010 include a listing fee of RM662,746. What is this item?
14. The company sold some plant and equipment at a loss of RM86,387 in 2011. Which assets did it sell?"
The risk is a lot of Malaysian companies listed in SG are poorly performed with low share price. Look at Etika, LionPac, etc.....
So invest with caution too.......Local companies are always safer.....
A quick check, JB foods and GuanChong direction seems to have close bond, maybe relative.
Based on GuanChong records, from RM0.30 last two years to now RM 2++ with consistent dividend. The ROE and ROA are relatively good.
Compared again with Petra Foods and GuanChong, JB Foods is good for long term investment. I think return should be rather handsome.
Guan Chong Bhd, a close competitor in the same business as JB Foods($0.29) is trading at MYR 2.07 ($0.83). The is company is going to dual-list with SGX end of this year. The price difference will surely propel JB Foods to near $0.50....
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Guan Chong Bhd. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2012. For the quarter, the company reported, revenue of MYR 312,843,000 against of MYR 334,641,000 a year ago. Profit from operations was MYR 43,289,000 against of MYR 41,372,000 a year ago. Profit before tax was MYR 40,077,000 against of MYR 40,236,000 a year ago. Profit for the period was MYR 35,255,000 against of MYR 35,377,000 a year ago. Profit attributable to ordinary equity holders of the parent company was MYR 35,302,000 or MYR 10.57 diluted earnings per share against of MYR 34,450,000 or MYR 10.30 diluted earnings per share a year ago. The decrease of 6.5% in turnover is mainly due to lower selling price of cocoa products although the sales volume increased marginally. For the six months, the company reported, revenue of MYR 667,183,000 against of MYR 624,641,000 a year ago. Profit from operations was MYR 88,572,000 against of MYR 76,340,000 a year ago. Profit before tax was MYR 82,760,000 against of MYR 74,027,000 a year ago. Profit for the period was MYR 66,689,000 against of MYR 65,509,000 a year ago. Profit attributable to ordinary equity holders of the parent company was MYR 66,605,000 or MYR 20.08 diluted earnings per share against of MYR 66,605,000 or MYR 19.48 diluted earnings per share a year ago. Net cash from operating activities was MYR 35,216,000 against of MYR 9,402,000 a year ago. Purchase of property, plant and equipment was MYR 34,521,000 against of MYR 39,180,000 a year ago. Barring any unforeseen circumstances, the Board of Directors of GCB expects that the Group's financial performance for the financial year 2012 to be satisfactory.
Guan Chong Bhd. is seeking acquisitions. Brandon Tay, Chief Executive Officer of Guan Chong, said, " While we do not plan to expand our capabilities aggressively, GCB is open to options whether through mergers and acquisitions or organically. Our proposed dual listing on the SGX is one such way of increasing our options."