Following up with $CIHLDG / 2828 (C.I. HOLDINGS BERHAD)

45th AGM Q&A key summary from Q&A section:
- 99% of the CIHLDG’s business is export in nature and is denominated in USD and EURO. Cost is mainly incurred in MYR.
- They are reinvesting some of the profits into expansion of capacity and improvement of facilities for better efficiency.
- The main component of the CAPEX in FY 2023 was construction in progress of RM47mil which comprise the purchase of land and buildings in Mukim Plentong, Daerah Johor Bahru, Negeri Johor Darul Ta’zim, modernisation of plant in Mukim Telok, Panglima Garang. The Company had also spent RM1.2 million on motor vehicles and RM1.8 million on building upgrades.
- The continuation of the construction will lead to approximately RM150 million to RM170 million CAPEX budgeted for FY 2024.

Q1 2024 CIHLDG
The revenue for Q1 is 20% lower yoy despite increase in sales volume by 15%, which mainly comes from increase demand from Africa, Middle East and Asia region. Lower results was due to decrease in average RBD Palm Olein price with lower selling price to maintain competitiveness in certain African markets. The strengthening of USD against MYR also contributes to higher realised loss on derivatives.

Q2 2024 CIHLDG
The revenue for for Q2 is 14% lower yoy due to decrease in demand from West Africa as a result of political instability in the region. Average RBD Palm Olein price also continues to decline.

Q3 2024 CIHLDG
- Operating profit increased by 5% despite decreased in revenue by 36%. The increase is mainly due to the strengthening of USD against MYR contributed to a higher realised and unrealised gain on derivatives.
- The coup that started in Niger led to a political crisis and affected the neighbouring countries in West Africa. The demand from Middle East has also decreased due to the crisis in the Red Sea region which led to a sharp increase in freight costs, affecting shipments to Middle East ports.
- Their profit margin is hovering around 1.7% ~ 1.9%, but the recent quarter has increased to 3.6%
- Retained earnings continue to grow from RM233mil in FY 2022 to RM314mil in FY 2023, and as of 31st March 2024 it is at RM345.5mil.

Anyone interested to track export prices of RBD PK Olein can refer to this link:
https://cutt.ly/Zega0NxU

Previous write-up on their:
FY2023 AR : https://cutt.ly/1ega0M5r
General overview : https://cutt.ly/4ega01On