A fair bit of interesting news have been happening at $CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) and that somewhat explains why their share price has moved quite a bit recently.

One of the most exciting news that came out yesterday was private equity firm Creador SB proposed to invest RM 170.3 mil on CCK’s Indonesian unit. A binding term sheet has been signed with Astrantia SB, a special purpose vehicle of a fund advised by Creador, for Astrantia to acquire a 40% stake in CCK's PT Adilmart, which produces frozen food. The proposed acquisition will be executed through the acquisition of existing Adilmart shares from CCK, as well as subscriptions for new Adilmart shares. (https://cutt.ly/PeyMkKc0)

A brief summary of CCK’s FY2023 Annual Report:

- Group Rev increased by 10.7% to RM 980.7 mil due to higher consumer demand in the retail segment and also a full year of contributions from PT Bonanza significantly boosted the prawn segment.
- 3 new CCK Fresh Mart retail stores were opened in Telipok (1) and KK (1) in Sabah, and in Kuching (1) Sarawak. This expanded their touch points to a total of 75, up from 72 as at end FY2022.
- Retail segment’s rev increased by 5.5% to RM 858.4 mil due to more matured contributions from their established retail network, higher sales vol from both retail and wholesale channels, and strong demand for their in-house manufactured processed products in Indonesia.
- Poultry segment’s rev improved by 2.7% to RM 336.6 mil due to improved demand for poultry products from institutional clients and consumer sentiment.
- Prawn segment’s rev increased by 36.81% to RM 109.9 mil largely due to contribution from PT Bonanza which boosted overall segment export vol.
- Food Service segment’s rev improved by 7% to RM 24.1 mil due to overall increase in activities of gov schools in Sarawak covered under their contract.
- Group PBT jumped by 30.2% to RM 106 mil.
- Gross margins inched up to 20.2% from 18.2% in FY2022.
- Retail segment (66%) continued to be the largest contributor to the Group PBT, followed by poultry (23), prawn (9%) and food service segment (3%).
- Operating and admin exp increased due to additional running costs incurred by PT Bonanza, facilities in Pontianak, Indonesia, and retail outlets that came on stream in the last few quarters.
- Remains net cash position (cash balances: RM 124.6 mil and borrowings: RM 49.8 mil).
- CCK has an internal dividend policy of paying up to 30% of PAT to the shareholders.
- A first and final singer-tier dividend of 4.25 sen was announced.
- Mr. Ethan Tiong who is Mr. Tiong Chiong Hiiung (Managing Director)’s son has been promoted to become the Deputy CEO of the group.