-->

Type something and hit enter


VIDEOS - STOCKS


On

Bursa Malaysia - 7167
Bloomberg - JOHO:MK

Reuters -  JHTN.KL

Webpage - http://www.johoretin.com.my/

Yahoo - 7167.kl

Sector            : Consumer Products & Services
Sub Sector    : Food & Beverages
Focus             : Tin & Dairy Products

Company Profile

Johore Tin Berhad (JOHOTIN) was incorporated in Malaysia on 22nd November 2020. JOHOTIN involved in two segments:

  1. Tin Cans Manufacturing

  • 21.72 % of 2020 revenue

  • Manufacturing of various tins, cans and other containers and providing tin plate services.

  • Most customer are locally base, with minor market shares in Singapore

  • Customer base consists of various industries mainly in biscuits, paint and chemical, edible oil and food processing industries.

  1. Food & Beverage 

  • 78.28 % of 2020 revenue

  • Manufacturing and selling of milk and other related dairy products, as well as packing and trading of all types of dairy products.

  • Dairy products comprise of sweetened condensed milk, evaporated milk and milk powder with the brand name Able Farm, Able LAC, Able Mama.

  • 80 % of the dairy products are exported, mainly to West Africa, South East Asia Region and American Continent.

Income Statement



31 Dec 2020

31 Dec 2019

31 Dec 2018

31 Dec 2017

31 Dec 2016

Revenue

502,260,000

579,790,000

501,120,000

474,550,000

441,200,000

Cost of Goods Sales

370,530,000

439,340,000

385,000,000

377,730,000

331,180,000

Earning Before Tax

53,220,000

60,520,000

48,350,000

33,580,000

46,790,000

Nett Profit

39,840,000

48,190,000

36,560,000

25,830,000

35,440,000

5 Years CAGR of Revenue

2.63 %

5 years CAGR of Nett Profit

2.37 %


JOHOTIN revenue had increased for the year 2016 to 2019 with a CAGR of 7 % before the Convid 19 pandemic. In 2020 the revenue had dropped from RM 579,790,000 in 2019 to RM 520,260,000, a drop of 10.23 % due to the factory being unable to operate at full capacity during Movement Control Order by Government of Malaysia in March 2020.


From the Q1 2021 financial report, JOHOTIN is recovering from the drop in revenue due to pandemic in 2020. Despite lower revenue in Q1 2021 the profit from Q1 2021 is on par with the profit before the pandemic due to higher profit margin.


Balance Sheet




31 Dec 2020

31 Dec 2019

31 Dec 2018

31 Dec 2017

31 Dec 2016

Account Receivable

89,092,975

97,784,025

112,953,453

79,567,756

83,501,184

Percentage of Account Receivable Past Due

25.15 %

28.15 %

33.88 %

32.66 %

33.18 %

Total Debt

44,990,000

49,470,000

32,410,000

43,890,000

67,660,000

D/E

0.13

0.15

0.10

0.15

0.30

Current Ratio

2.94

2.79

2.51

2.92

2.14

Cash / Current Asset

32.96 %

26.60 %

23.38 %

31.36 %

26.40 %


JOHOTIN percentage of account receivable past due had reduced from 33.18 % in 2016 to 25.15 % in 2020. Asides that, JOHOTIN total debt and debt to equity ratio had also reduced. JOHOTIN has a strong current ratio of 2.94 in 2020 while 32.96 % of the current assets are cash.



Cash Flow



31 Dec 2020

31 Dec 2019

31 Dec 2018

31 Dec 2017

31 Dec 2016

Cash Flow from Operation

48,300,000

43,810,000

41,580,000

20,340,000

81,610,000

Cash Flow from Investing

-810,000

-29,300,000

-31,480,000

-17,010,000

-9,750,000

Cash Flow from Financing

-21,110,000

-8,150,000

-25,970,000

21,480,000

-45,580,000

Free Cash Flow

46,650,000

30,360,000

18,180,000

3,180,000

71,210,000

5 years CAGR of Cash Flow from Operation

-9.96 %

5 years CAGR of Free Cash Flow

-8.11 %


JOHOTIN CAGR of cash flow from operation is -9.96 % and CAGR of free cash flow is - 8.11 %.


Per Share Analysis



31 Dec 2020

31 Dec 2019

31 Dec 2018

31 Dec 2017

31 Dec 2016

Share Outstanding 

307,560,000

310,470,000

310,470,000

310,470,000

248,810,000

Price 31 Dec

2.01

1.73

0.96

1.21

1.23

BV/Share

1.12

1.06

0.98

0.90

0.86

P/E

15.52

11.15

8.15

14.54

8.64

5 years CAGR of Price 

10.32 %


JOHOTIN had lower book value per share compared to its current price. Asides that its price had increase with CAGR of 10.32 % while its free cash flow had decrease with CAGR of -8.11 %.



Dividend



31 Dec 2020

31 Dec 2019

31 Dec 2018

31 Dec 2017

31 Dec 2016

Dividend Per Share

0.054

0.064

0.05

0.04

0.04

Dividend Payout

41.69 %

41.23 %

42.46 %

48.08 %

28.08 %

Dividend Yield

2.69 %

3.70 %

5.21 %

3.31 %

3.25 %

10 year Malaysia Government Bond

2.68 %

3.33 %

4.01 %

3.94 %

4.24 %


JOHOTIN has a dividend payout of around 40 % and dividend yield match with 10 year Malaysia Government Bond.


Dupoint Analysis



31 Dec 2020

31 Dec 2019

31 Dec 2018

31 Dec 2017

31 Dec 2016

Net Profit Margin

7.93 %

8.31 %

7.30 %

5.44 %

8.03 %

Asset Turnover

1.07

1.28

1.13

1.20

1.27

Equity Multiplier

1.32

1.33

1.41

1.36

1.54

Return of Equity

11.19 %

14.16 %

11.63 %

8.91 %

15.78 %


Net Profit Margin of JOHOTIN is around 8 % over the 5 years except 2017. Net profit margin for 2020 stayed around 8 % despite convid 19.


Asset turnover of JOHOTIN had reduced from 1.28 in 2019 to 1.07 in 2020 maybe due to convid 19. Asset turnover of JOHOTIN might increase after the recovery of the economy.


Equity Multiplier or Financial Leverage of JOHOTIN had decreased from 1.54 in 2016 to 1.32 in 2020 which means the company had reduced its debt over the five year.


Growth Rate



5 year average ROE (AROE)

12.33 %

5 year average dividend payout ratio (ADPR)

40.31 %

Ground Rate (GR = AROE x (1-ADPR))

7 %


JOHOTIN had growth rate of 7 %


Capital Asset Pricing Model (CAPM)



Beta of JOHOTIN

0.7

Risk Free Rate (10 year Malaysia Government Bond)

3.24 %

Expected Return (ROE)

12 %

Cost of Equity = Risk Free Rate + Beta (ROE - Risk Free Rate)

9.37 %



Research Report



Investment House

Date

Target Price

PUBLIC INVESTMENT BANK

13 April 2021

RM 2.08

Average Price Target


RM 2.08



Peer Analysis 




JOHOTIN

DLADY

F&N

P/E

11.04

31.78

22.87

Dividend Yield

3.42

2.39

2.29


JOHOTIN had lower P/E compared to its peers. Asides that It had a higher dividend yield.



Technical Analysis


JOHOTIN daily chart show a downward trend with a support level at RM 1.48. Price might go upward if it is above the Ichimoku cloud at RM 1.625.


JOHOTIN charts is testing it to support RM 1.53. JOHOTIN going downtrend if price is below RM 1.53.



Maximum drawdown for JOHOTIN is 54 %.


Summary of Stock Reviews


Summary of Industry Comparison


http://ivkls.blogspot.com/2021/07/stock-review-johotin-7157-johore-tin.htm
Back to Top
Back to Top