Saham: KLSE-3A - PT. Three-a Resources Berhad

STATEMENT TO SHAREHOLDERS IN RELATION TO THE PROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR THE COMPANY TO PURCHASE ITS OWN SHARES UP TO TEN PER CENTUM (10%) OF THE TOTAL NUMBER OF ISSUED SHARES

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General Meetings: Notice of Meeting [3A]

General Meetings: Notice of Meeting

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Notice of Person Ceasing (Section 139 of CA 2016) - PRUDENTIAL PLC [3A]

Notice of Person Ceasing (Section 139 of CA 2016) - PRUDENTIAL PLC

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Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TEO KWEE HOCK [3A]

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TEO KWEE HOCK

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OTHERS [3A]

OTHERSTHREE-A RESOURCES BERHAD ("3A" OR "THE COMPANY") - PROPOSED RENEWAL OF SHARE BUY-BACK MANDATE

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Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - PRUDENTIAL PLC [3A]

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - PRUDENTIAL PLC

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Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - PRUDENTIAL PLC [3A]

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - PRUDENTIAL PLC

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Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TEO KWEE HOCK [3A]

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TEO KWEE HOCK

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Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TEO KWEE HOCK [3A]

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TEO KWEE HOCK

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$3A / 0012 (THREE-A RESOURCES BERHAD) – Something's cooking?

In essence, they are a food and beverage ingredient manufacturing company.

Products portfolio, all ingredients are Halal and Kosher certified:
•Liquid Caramel, Caramel Colour
•Fermented Vinegar, Distilled Vinegar, Rice Vinegar
•Glucose Syrup, High Maltose Syrup, Liquid Maltodextrin
•Soya Protein Sauce (“sPs”)
•Hydrolysed Vegetable Protein (“HVP”) Powder
•Caramel Powder
•Soya Sauce Powder
•Maltodextrin
•Golden Syrup

FY 2022 AGM main takeaways:
• 3 products namely Caramel, Maltodextrin and Glucose represented more than 80% of the Group’s sales for FY2022.
• The total capacity of all plants is approximately 36,000MT per month and its present utilisation rate of each plant varies; ranging from 50% to 95%.
• The Group has three (3) Maltodextrin Plants with total plant capacity of around 5,000MT per month. The current utilization rate is around 80% - 90%.
• Their major raw materials are corn starch and tapioca starch, soybean meal, and refined cane sugar. So, commodity price volatility would affect them.
• These raw materials are mainly imported from Thailand, India and China. A minimum of two suppliers are always maintained for major raw material and consumables.
• They adopt a dynamic inventory holding policy to mitigate this challenge and pass on significant costs movement to customers through product selling price/ASP.
• Natural gas is used as a direct energy source to generate heat and steam. Its expenses accounted for high single digit percentage of the overall cost of sales.
• Sudden surge in freight and logistics costs will also impact them.

FY2022 Annual Report highlights:
• They recorded RM658,702mil in FY2022, highest ever revenue in their Group’s history, contributed predominantly by the higher Average Selling Prices (ASP) and increase in quantities of products sold across the board.
• Total Sales and Domestic Sales for FY2022 increased by 28% and 30% respectively. During FY 2022, exports remained stable with an overall increase of 25%
• Revenue from export of products comprised 42% of the overall revenue of the Group in FY2022. MY - 58%; SG – 10%; Others – 32%
• Despite the record high revenue achieved, profit for the Group have been impacted by higher raw material costs, energy costs, labour, transportation and other related expenses in FY2022.
• The Group’s gross profit margin has also been affected as compared to the previous year from 18.7% to 13.4% in FY2022. The prices of major raw materials of the Group, particularly corn starch and tapioca starch had increased significantly in FY2022 as compared with FY2021.

As they have just announced their Q4FY2023 results, let’s look briefly into their performance:
Current FY2023 vs Previous FY2022
• Total FY Revenue registered at ~604mil, has dropped by approx. -8%.
• But, FY PAT registered at 45.2mil, increased significantly around +29%, which bring their profit margin to 7.5%. This implies they can pass on the cost, albeit some time lag.
REVENUE FY 2023 (‘000) Contribution by geography:
MY - 330,555 - 55%
SG - 62,630 - 10%
OTHER - 210,679 - 35%
• The top 3 export countries of the Group (ex-Singapore) are Indonesia, Philippines and China.

Other interesting thing(s) to note:
• There seem to be this individual name: Mr. Teo Kwee Hock who has been trading this company’s share. He has some stake in a few other PLCs, like: $OFI / 7107 (ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD), $AYER / 2305 (AYER HOLDINGS BERHAD), $ELKDESA / 5228 (ELK-DESA RESOURCES BERHAD), $FIAMMA / 6939 (FIAMMA HOLDINGS BERHAD)… and more
• On 3 October 2022, a subsidiary of the Company, San Soon Seng Food Industries Sdn. Bhd. entered into a S&P Agreement with a third party for the acquisition of a piece of land with three (3) units of single-storey detached factory building for a total consideration of RM5.25mil.
• Climate change related challenges like rising temperatures and water shortages can significantly affect the production of the crops, leading to a potential supply chain problem that could impact them.
• Those who know how to read Mandarin can proceed to read an article coverage here: https://cutt.ly/tw6W8zgz

3A

Three-a Resources Berhad

Company Background