MSM Malaysia Holdings Bhd (-ve)
MSM (Fundamental: 2.8/3, Valuation: 2.0/3) saw increased trading interest after reporting 1Q2015 earnings results last Tuesday. The stock closed 0.4% higher at RM5.35 last Friday.
For 1Q2015, sales grew 2.1% y-o-y to RM508.49 million while net profit rose 26.1% to RM71.03 million, boosted by lower raw material cost and higher industries sales.
MSM is Malaysia’s largest refined sugar supplier with 64% share of the domestic market. The company operates two refineries in Prai (Penang) and Perlis with a combined annual production capacity of 1.25 million tonnes of refined sugar products.
It plans to build a new refinery in Johor, which will more than double production capacity to 3.25 million tonnes per year. The refinery, costing about RM1 billion, is targeted for completion by 3Q2017.
It has a solid balance sheet with net cash of RM147.8 million or 21 sen per share. The stock trades ex-entitlement for 14 sen per share final dividend on June 16.
This article first appeared in The Edge Financial Daily, on June 1, 2015.