Journal - MSM

= Journal =

MSM - yesterday close: RM 5.00. PE = 17.8x

1QFY13 report.



Net Profit:
DOWN 6.6% to RM 61.9mil, 8.81 sen. (1QFY12: 9.44 sen)
EPS (ttm): 28.1sen

NTA: increase 9 sen to RM 2.58.

Operating Cash: increase to RM 196.9mil. (1QFY12 = RM 87.2mil),
Total cash: increase to RM 606.9mil
- despite of borrowings (net) RM 170.1mil, MSM still chalp up +ve net increase in cash. :)

Borrowings: reduce to RM 290.9mil. (FY12 = RM 461.0mil)

Prospects:
"Notwithstanding the volatility of commodity prices, the Group is expected to be able to sustain its satisfactory performance."

My Comment:
We can imagine how much cash MSM generate each quarter. Well, everybody uses sugar in their daily food & beverages items. Therefore, this is the interesting part. This business generates cash a LOT.
Now, the next interesting part is, the result shown compare to last quarter. Look at this;

Sales & Net profit:
4QFY12 = Sales, RM 612.5mil, N.Profit, RM 39.8mil.  ===> 1QFY13 = Sales, RM 514.9mil, N.Profit, RM 82.8mil.
Reason: Decrease in RAW sugar cost.

Now, if this continue for the whole year this year, we may see earnings improvement despite lower net profit in 1Q. We have another 3Q to go. :)


Malaysia Stock Market

Click 'Like' and 'Share' if you like this post.