MSM Malaysia Holding Bhd (+ve)
MSM (Fundamental: 2.8/3, Valuation: 1.4/3) saw a surge in volume, with more than 500,000 shares changing hands or about 8.7 times its average daily trading volume. Its share price remained unchanged at RM5.20.
MSM is the country’s largest sugar refinery and commands two-thirds of the domestic market share. The company is a subsidiary of Felda Global Ventures Holdings. It has a strong balance sheet with net cash of RM221.6 million.
Back in February, the company scrapped a proposed partnership with Dubai’s Al Khaleej to build a new refinery in Johor. Instead, MSM will now proceed with the RM1 billion project on its own, targeted to be operational by 3Q17.
The stock is trading at a trailing 12-month P/E of 14.2 times and 1.88 times book value. A final dividend of 14 sen per share was proposed, which will bring total dividends for 2014 to 24 sen – giving a yield of 4.6%.
This article first appeared in The Edge Financial Daily, on April 30, 2015.