Type something and hit enter

On



                        Image may contain: food

Analysts gave this stock a perfect 10 score! But what makes this

company so special? And what do they do and how do they do things

to keep them growing? First we need to analyse all the 4M’s 


For those who are not familiar with the 4️M’s it is


enlightened   Meaning (what does the company do and where is the revenue

coming from) 



enlightened   Moat (competitive advantage amongst other competitors) 


enlightened   Management (how is the management doing things in the company

to grow the company) 



enlightened   Margin of safety (how much of a discount you can buy this

company with after calculating the intrinsic value) 


The first M – Meaning 


This company is dealing with mainly dealing with Tin Manufacturing

and Food & Beverage


Tin Manufacturing is involved in the manufacturing of various tins,

cans, and other containers. Food and Beverage are involved in

manufacturing and selling of milk and other related dairy products.


Main revenue contributor is their Food & Beverage segment which more

than 80% is exported mainly in West Africa, South-East Asia Region and

American Continent.


Majority of their revenue also derives from Malaysia but they are also

doing business in various countries such as Africa, Central America,

Europe, Malaysia, and Other Countries.


Second M – Moat 


This company has a few main competitors as well such as TGUAN,

PERSTIM, SLP and DAIBOCI but what makes JOHOTIN up their game

compared to all the other competitors? 


To remain competitive, the group have always maintained their prices

to their customers for as long as possible in order to keep their

existing customer and maybe even take other customers from other

competitors due to competitive prices that they offer. 


The Group continuously monitoring the prices of key raw materials,

expanding the pool of suppliers and customers whilst continuing to

establish long-term business relationship with the existing suppliers

and customers, expanding the existing business by enhancing the

Group’s strength and developing new products. 


For F&B segment, the barriers to entry are mainly the relative high

capital investment to set up the manufacturing facilities, established

distribution channels, compliance with stringent safety standards and

strong research and development capabilities.

It will be hard for new competitors to compete with JOHOTIN with their

competitive prices and strong business relationship with their existing

suppliers and customers.


Third M – Management 


Things that management do to overcome the group’s challenges


Challenge (1) Shortage of labour supply, both local and foreign. 

Resolution (1) Appointed several recruitment agencies to source for

new workforce and currently we are able to cope with the demands and

control over the increase in operational costs. 


Challenge (2) Higher maintenance costs are required for the existing

machineries. 


Resolution (2) machineries were upgraded consistently as the older


machineries deteriorate and required higher maintenance costs with

newer machineries, productions are more consistent and capacities are

increased.


The fourth M

Which is their Margin of Safety, this will be a heck of a

long one. We will be discussing more on their financials and also

calculate their intrinsic value as well as whether is this company

currently undervalued or overvalued at the moment.




No photo description available.


Comment down below “Part 2” and I will make part 2 in the upcoming

days.


enlightened———— Check us out ————enlightened
     WEBSITE • @12ingroup
     FACEBOOK • @12Invest
     INSTAGRAM • @12ingroup
     TWITTER • @12_invest


#JOHOTIN

#TIN

#FnB

#12INVEST


Disclaimer:


All the views and opinions expressed in our post are for education and informational purposes only and it should not be considered as professional financial investment advice or buy/sell recommendations. We strongly encourage you to do your own research and take independent financial advice from a professional before you proceed to invest.


We make no representations as to the accuracy, completeness, correctness, suitability, or validity of any information on our Facebook Page/Group and will not be liable for any errors, omissions, or delay in this information or any losses and damages arising from its display or usage. All users should read the posts and analyze the information at their own risk and we shall not be held liable for any losses and damages.

https://klse.i3investor.com/blogs/12stocktalkeng/231181.jsp

Back to Top
Back to Top