Re: 8th March 2012 Thursday

by locomania Thu 08 Mar 2012, 10:29

maxims wrote:watch msm man..may have surprise

CC? Left 20 days. Hmm...

by mataseri Thu 08 Mar 2012, 10:34

maxims wrote:watch msm man..may have surprise

msm said will pay dividend.

by **Cals** Thu 08 Mar 2012, 10:35

msm-cc suspicious movement lol Tongue

by Guest Thu 08 Mar 2012, 10:37

mataseri wrote:
maxims wrote:watch msm man..may have surprise

msm said will pay dividend.

where is the link

by mataseri Thu 08 Mar 2012, 10:42

maxims wrote:
mataseri wrote:
maxims wrote:watch msm man..may have surprise

msm said will pay dividend.

where is the link

From CIMB
MSM Malaysia Holdings [ PDF ]
Serving a final dividend sweetener soon
MSM MK / MSMH.KL | NEUTRAL - Maintained | Share Price RM5.00 - Tgt. RM4.65
Food & Beverages | - by Ivy NG, CFA

We gathered from yesterday’s briefing that MSM is committed to its 50% dividend payout policy and will announce its final dividend soon. We expect an 11 sen final dividend, which works out to a yield of 2.2% (full-year yield of 3.8%) and could support near-term share prices. Management revealed a locked-in cost of 26 US cts/lb for raw sugar, which is broadly in line with our assumption. We maintain our target price basis of 12.6x P/E and Neutral rating.

by **Cals** Thu 08 Mar 2012, 10:43

maxims wrote:
mataseri wrote:
maxims wrote:watch msm man..may have surprise

msm said will pay dividend.

where is the link

maybe upper hand news Devil

by mataseri Thu 08 Mar 2012, 10:44

Cals wrote:msm-cc suspicious movement lol

somebody just cleared the 1.5sen queue

by **phoenix777** Thu 08 Mar 2012, 10:53

dayang???/

by **WinningHeart** Thu 08 Mar 2012, 10:55

Good morning Max sifu and Comrades [You must be registered and logged in to see this image.]

by **Cals** Thu 08 Mar 2012, 10:58

mornin bern bern

by **Cals** Thu 08 Mar 2012, 10:59

friendly reminder on ex dates

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by locomania Thu 08 Mar 2012, 11:07

mataseri wrote:
Cals wrote:msm-cc suspicious movement lol

somebody just cleared the 1.5sen queue

MSM mum seldom chiong ler, I doubt cc will go beyond .02 since left 20 days.... Worried

Unless there are big news that we not aware why some1 sapu .15. Let's watch if can go beyond .02 till expiry or not..my bet is no

by mabs Thu 08 Mar 2012, 11:08

Key takeaways of Hartalega Meeting

- Nitrile demand momentum to continue – As the latex price still trading at a high level and not expecting to trend lower at the moment, the management expects the strong demand for nitrile gloves to continue. With other manufacturers expanding capacity to start producing nitrile gloves, we expect the nitrile market to be more competitive. The imminent pricing war will be detrimental to Hartalega’s earnings. However, we believe the Group still has the advantage to defend its position as Hartalega is capable of producing the lighter 3.2g soft nitrile gloves as compared with its peers.

- Venturing into emerging market – Currently, China has 1.4 pieces per capita glove consumption whereas Asia also has a low rate of 4.6 pieces glove consumption per capita as compared to 148.3 pieces in USA. The high population country would turn out to be a big potential market. Assuming China’s gloves consumption level reaches to Europe’s level, that will translate into 132 billion pieces of glove demanded per annum. Hartalega has made its presence felt in the emerging market by setting up Yang Cheng Hartalega in China last year. Also, the Group will be expanding into India within this year.

- Commendable earnings – Hartalega continues to stand tall among all its peers with impressive performance. Sale per employee is the highest in the industry at RM269k per employee, thanks to their productivity improvement, efficiency and industrial automation. Furthermore, Hartalega has the highest production capacity in the world, producing an unrivalled rate of 30,000 pieces of gloves per hour, while its peers are still distance behind in terms of efficiency. As a result, Hartalega’s earnings margin of 26% in FY2011 (against sector average of 14%) is way ahead of other players in the industry.

- Expanding capacity – Hartalega’s sixth plant is expected to be completed in 2013 and equipped with its latest technology which allows Hartalega to fully automating the packing process, thus improving productivity and further boost its annual capacity by 14.65% to 11.18 pieces of gloves in FY2013. We estimate the new plant would enhance its earnings by approximately 15% based on utilization rate of 90%. Upon the completion of Plant 6, the current 33 acres land in Batang Berjuntai will be fully occupied. Thus, we believe that the Group will be acquiring another 100 acres land in Klang Valley in order to construct its seventh plant. The plant is set to cost Hartalega about RM100m and will be financed internally. It will be a significant milestone for Hartalega as it aims to expand its annual capacity to 13.5 billion pieces of glove in FY2014, and further improve the production capacity to 40,000 pieces of glove per hour.

- Sturdy balance sheet – The RM100m capex expansion will translate the Group from current net cash position into net gearing of 12.7%, which is still deemed healthy for the Group.

- Minimum wage policy – We reckon that the new policy would have some minimal impacts to Hartalega as it owns relatively smaller workforce compared to other glove makers. To recap, the Group has successfully reduced the staff cost to 6.8% of sales in FY2011 from 14.9% in FY2003 following the productivity improvements and automation. As a result, Hartalega recorded RM70,060 profit per employee in FY2011, more than 400% increase compared to FY2005.

- Limited upside following the share price gone up 40% ytd – We derive our target price at RM8.36 (Not Rated) with 11x PER FY2013, which is close to its +1 standard deviation level. We peg Hartalega at its upcycle PER because of Hartalega’s status as the top nitrile glove producer in the world, continued strong demand for nitrile glove and its impressive earnings as compared with its peers. Furthermore, we expect the share to be more liquid following the proposed bonus issue and free warrants. Upon completion of the bonus issue, our target price will be adjusted to RM4.18 (without factoring in the potential earnings dilution of the free warrant as the exercise price is yet to be determined and its interest savings).

Company Background

Hartalega is the largest nitrile glove manufacturer in the world with 6.4 billion pieces of nitrile gloves sold in FY2011. 90% of their sales are contributed by nitrile gloves and the sales volume has increased by 8-fold in last 4 years. From a humble beginning of a One-Line-Operation, Hartalega has experienced tremendous growth and evolved into a sizeable company of 43 Production Lines, with a capacity to produce over 9 billion pieces of gloves annually. The Group’s products include natural rubber examination gloves, nitrile examination gloves, natural rubber surgical gloves, nitrile surgical gloves, and nitrile clean room gloves.

Hartalega was listed on the Main Board of Bursa Malaysia Securities Bhd in April 2008. Within a short period of 2 years since its listing, the Group has doubled its revenue base to RM571.9m. Hartalega achieved a revenue of RM734.9 million in FY2011, approximately 30% of the previous full financial year achievement. The group raked in RM190.3m of net income with an impressive net profit margin of 25.9%, the highest among all glove-makers, gaining advantage of the demand shift to nitrile gloves as a result of the exorbitant price surge in latex.

Besides, Hartalega is the first Malaysian company to develop and implement a Robotic Glove Stripping System , which mimics the human hand motion to strip gloves off from the production lines. This transformation has allowed the Group to enjoy a higher profit margin as compared to the other listed glove manufacturers. This encouraging growth achievement has enhanced the Group’s balance sheet position. The Group has a cash balance of more than RM116 million as of FY2011, gaining a net increase of RM45m.[/b]

by **WinningHeart** Thu 08 Mar 2012, 11:16

Cals wrote:mornin bern bern

Morning Cals Cals Kiss

by **phoenix777** Thu 08 Mar 2012, 11:23

the moment bern wake up nicorp goreng

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by Guest Thu 08 Mar 2012, 11:23

bimb will chiong to at least 2.35 else i really cut my lan jiao..no more skin

by Guest Thu 08 Mar 2012, 11:23

maxims wrote:bimb will chiong to at least 2.35 else i really cut my lan jiao..no more skin

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by 1 Thu 08 Mar 2012, 11:28

maxims wrote:bimb will chiong to at least 2.35 else i really cut my lan jiao..no more skin

haha,,

by **WinningHeart** Thu 08 Mar 2012, 11:53

phoenix777 wrote:the moment bern wake up nicorp goreng

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Coz i like to eat goreng food Devil

by **Cals** Thu 08 Mar 2012, 11:55

"develop patience & eliminate greed; your goal is to trade well; not often" -Alexander Elder

by **phoenix777** Thu 08 Mar 2012, 11:56

maxims wrote:
maxims wrote:bimb will chiong to at least 2.35 else i really cut my lan jiao..no more skin
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touch or breach?

or stay there by mkt close? [You must be registered and logged in to see this image.]

by **WinningHeart** Thu 08 Mar 2012, 11:56

maxims wrote:bimb will chiong to at least 2.35 else i really cut my lan jiao..no more skin

Haha ... I small play a bit ... Tenkiu sifu Beer

by **ESH** Thu 08 Mar 2012, 12:15

hi all, do you guys think the trend will follow about similar to today's trend?

by **Cals** Thu 08 Mar 2012, 12:17

u mean uptrend? or open high go low?

by **ESH** Thu 08 Mar 2012, 12:19

Cals wrote:u mean uptrend? or open high go low?