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$MSM / 5202 (MSM MALAYSIA HOLDINGS BERHAD)
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🚀 MSM Malaysia Reports Strong FY2024 Turnaround – Growth Likely to be Sustained 🚀
📌 4QFY2024 Performance:
PBT surged 81% YoY to RM96 million, driven by higher efficiency, better capacity utilization (64%), and lower gas costs.
Sales volume up 11% YoY, but revenue dipped 1% to RM944 million due to lower average selling price (ASP) (-11%).
📌 Full-Year 2024 Turnaround:
Revenue grew 15% YoY to RM3.54 billion.
PBT of RM75 million, reversing a LBT of RM28 million in 2023.
ASP rose 6%, sales volume increased 8%, but NY11 raw sugar (+3%) and freight costs (+22%) pressured costs.
Refining costs improved (-11%), supporting better margins.
📌 Challenges & Risks:
⚠ Sugar Prices & Forex Volatility – This year’s lower NY11 and favorable USD helped profitability but may not last.
⚠ Rising Freight & Input Costs – Global shipping and energy prices remain a challenge.
⚠ Government Incentives – Part of MSM’s revenue came from government support, which may not be recurring.
📌 Why Growth is Likely to Continue:
✅ Operational Efficiency Gains – Better capacity utilization, cost control, and refining improvements are sustainable factors.
✅ Stronger Sales & Market Expansion – MSM is expanding its domestic and export markets, ensuring long-term demand.
✅ Pricing Strategy & Government Support – MSM is working on a sustainable pricing mechanism, which will help stabilize profitability.
✅ Commitment to Dividends & Long-Term Growth – Management aims to return MSM to a dividend-paying stock, signaling confidence in continued profitability.
📌 Conclusion:
MSM’s profitability is not just a one-off event but the result of structural improvements and market expansion. While PBT may fluctuate, the company is well-positioned for continued growth through efficiency gains, strong sales volume, and a sustainable pricing strategy. Investors can expect long-term positive momentum, even if future profits do not always match the RM75 million mark. 🚀 MSM Malaysia Reports Strong FY2024 Turnaround – Growth Likely to be Sustained 🚀
📌 4QFY2024 Performance:
PBT surged 81% YoY to RM96 million, driven by higher efficiency, better capacity utilization (64%), and lower gas costs.
Sales volume up 11% YoY, but revenue dipped 1% to RM944 million due to lower average selling price (ASP) (-11%).
📌 Full-Year 2024 Turnaround:
Revenue grew 15% YoY to RM3.54 billion.
PBT of RM75 million, reversing a LBT of RM28 million in 2023.
ASP rose 6%, sales volume increased 8%, but NY11 raw sugar (+3%) and freight costs (+22%) pressured costs.
Refining costs improved (-11%), supporting better margins.
📌 Challenges & Risks:
⚠ Sugar Prices & Forex Volatility – This year’s lower NY11 and favorable USD helped profitability but may not last.
⚠ Rising Freight & Input Costs – Global shipping and energy prices remain a challenge.
⚠ Government Incentives – Part of MSM’s revenue came from government support, which may not be recurring.
📌 Why Growth is Likely to Continue:
✅ Operational Efficiency Gains – Better capacity utilization, cost control, and refining improvements are sustainable factors.
✅ Stronger Sales & Market Expansion – MSM is expanding its domestic and export markets, ensuring long-term demand.
✅ Pricing Strategy & Government Support – MSM is working on a sustainable pricing mechanism, which will help stabilize profitability.
✅ Commitment to Dividends & Long-Term Growth – Management aims to return MSM to a dividend-paying stock, signaling confidence in continued profitability.
📌 Conclusion:
MSM’s profitability is not just a one-off event but the result of structural improvements and market expansion. While PBT may fluctuate, the company is well-positioned for continued growth through efficiency gains, strong sales volume, and a sustainable pricing strategy. Investors can expect long-term positive momentum, even if future profits do not always match the RM75 million mark.