Monday, 11 October 2021

Rhonema: Milk Not Enough


Rhonema was listed on the main market of Bursa in December 2016 at an issue price of 75sen.

It is mainly involved in manufacturing and distribution of animal health products to livestock industry, as well as distribution and supply of food ingredients to food manufacturers.

The animal health products include pharmaceuticals, vaccines, feed & feed additives etc, are mainly for the poultry & swine segment. 

In early 2020, the company expanded into the ruminant segment (cow) by acquiring 49% stake in 3 companies.

This acquisition includes a small dairy farming business which produces fresh milk which is sold to wholesalers.

Rhonema mentioned that it has a plan to grow this dairy farming business and did not rule out venturing downstream to have its own brand of fresh milk products in the future.

That's one of the main reasons I decided to invest in Rhonema.

Monday, 4 October 2021

My Portfolio Sep21


Summary For September 2021

My Portfolio @ End of Sep21

The performance of the stocks in my portfolio in September is mixed, with nine gains and nine losses.

Overall my portfolio lost 1.2% in this month.

The worst performer is Supermax which suffered a 27.5% drop. I didn't follow its share price closely and was actually quite shocked to realize how low it has gone.

Nevertheless Supermax has a 15-sen dividend ex-ed in Sep21.

Even though I don't have a lot of Supermax shares, it's still a disappointment to me. 

On the other hand, the best performer is DKSH which gains 19% but I also do not own a lot of its shares.

Friday, 24 September 2021

MFCB Into Oleochemicals: Good or Bad?

After its 80%-owned 260MW Don Sahong hydroelectric dam in Laos started operation in 2020, we know for sure that MFCB is becoming and will become a cash cow.

The concession period for the dam is 25 years which is up to 30th September 2045. 

From the most recent FY21Q2 quarter report, the 6-months PBT from its renewable energy segment is RM176.8mil which is almost entirely from Don Sahong with negligible contribution from its solar business.

With the second half of the year expected to contribute more, it's safe to estimate a PBT of RM400mil per year from Don Sahong.

As depreciation and amortization are usually huge for such infrastructure, I guess the operating cash flow from it might be around or even more than RM400mil per year.

What will you do if your company has RM400mil cash coming in consistently every year?

Saturday, 4 September 2021

My Portfolio Aug21


Summary For August 21

Stock Portfolio @ End of Aug21

In August 2021, Malaysia has a change of government again. The stock market viewed it quite positively in which the KLCI gained 100 points (~7%) from 1,500 to 1,600.

In the same month, our Covid-19 vaccination rate continued to be encouraging but new Covid-19 cases soared and stayed above 20,000 cases per day.

As of today, it's reported that over 65% of adults population are FULLY vaccinated. 

Even though we're not sure whether the vaccines can successfully fence off the virus mutants, we should be able to achieve 80% adult vaccination mark at the end of this month.

Stock market wise, my monthly portfolio return of 3% was beaten by KLCI's 7% gain.