My Portfolio Nov23

 Summary For November 2023

Portfolio @ End of Nov23

In November 2023, my portfolio value inched up 0.8%. YTD gain is still below 10%.

Gtronic's share price moved up the most by 12.6% in the month, and now we know why.

Gtronic's founder will dispose his entire 10.4% shares to APB Resources Bhd at a price of RM2.00 per share.

To me, this is not an exciting news as it's not good to see any founder exiting his own company.

Furthermore, the buyer APB seems to be in oil & gas fabrication industry and I'm not sure whether it can bring growth to Gtronic.

Anyway, the founder of Press Metal Datuk Koon Poh Tat recently in mid 2023 emerged as a substantial shareholder of APB and it was followed by almost complete change of its board members.

I think that there might be future change in Gtronic's boardroom and hopefully it will be a positive one.

Currently its share price has fallen from RM1.80 back to RM1.60 after the announcement. Whether it can reach the transaction price of RM2.00 will depend very much on its future financial performance.

LEESK's FY23Q3 results is good, with both QoQ & YoY growth in net profit.

Revenue of RM32.7mil is partly contributed by 27% rebound in export sales. Net profit of RM3.45mil (EPS 2.14sen) is the highest so far in FY23.

The result will be better if there is no impairment of RM0.4mil in this quarter.

Nevertheless, such impairment of receivables under its Cuckoo rental sales seems to be a norm now.

Maybulk's FY23Q3 revenue (RM33.2mil) & PAT (RM4.99mil, EPS 0.50) are just average. There is a forex loss of RM3.4mil in this quarter though.

Weakening RM will not be good for Maybulk as it has its cash saved in RM while its functional currency is USD.

Next quarter of FY23Q4 will see a significant rise in net profit from the sales of another vessel.

Both of its new business ventures shelving & storage solution and industrial property development do not look exciting, but they seem to be complementing each other.

MFCB's latest financial result is not bad.

From the data above, revenue in resources and packaging falls in current quarter compared YoY but their PBT increases mainly due to better cost control and favorable product mix.

Its renewable energy division continue to perform well.

Share of loss in other investment was RM4.0mil in this quarter, among them is RM4.5mil loss from Edenor.

Earlier in November, MFCB proposed to acquire the remaining 20% shares in Don Sahong hydropower plant from EDL-Generation Public Company for USD85mil (~RM397mil) via its 56.25% owned subsidiary.

The acquisition has been completed on 27 Dec23.

This has increased its effective equity interest in the hydropower plant from 80% to 91.25%.  The management expects this share acquisition (after borrowing cost) will add RM27mil to the PATAMI in FY24.

Cash should not be a big issue as it can generate more than RM500mil operating cashflow a year.

Financial result of the final quarter of FY23 will not be very good as the management has already guided an approximate RM15.7mil reduction in PATAMI, on top of sales loss, due to assets impairment caused by recent fire incidence in one of its flexible plastic packaging factories.

The losses arising from damages on PPE and inventories will be fully recovered from insurance claim in FY24.

Meanwhile, under its food security division, MFCB is also investing into an established platform that owns 1,300 acres fruits and vegetables farms and distribution channels in Johor & Pahang.

They plan to develop modern farming or greenhouse farming for herbs, fruits & vegetables on a 772-acre land in Perak.

I don't have too much information regarding this new investment and I don't know how much stake MFCB will hold in this venture.

With revenue of RM1.1bil and PATAMI of RM137.8mil (EPS 8.9sen), Scientex's started its FY24 with a bang.

It is its best ever Q1 result.

As usual, its packaging division continue to face headwinds while property division is experiencing robust growth.

Property market in Johor is expected to have some great time and Scientex might be able to ride the trend.

Krono's FY23Q3 result is not good at all, posting its lowest net profit of just RM1mil (EPS 0.14). This is one of its worst profit in its listing history.

The management is not that optimistic about year 2024 as well.

Looking at the trend of its historical quarterly profits, it looks like Krono is struggling to grow its bottom line.

Anyway, its balance sheet and cash flow remain good.