Cab Cakaran Corporation Berhad

CAB CAKARAN REPORTS NET PROFIT OF RM33.89 MILLION IN Q1 2025
• Excluding Q1 2024 subsidies of RM39.8 million, Profit Before Tax actually increased 76% to RM45.3 million from RM25.71 million for Q1 2025
• With cash of over RM188 million, CAB seeks synergistic M&A across the food industry
· Retail division records higher revenue of RM36.51 million, attributable to two new outlets. Now has 15 outlets, and growing.
$CAB / 7174 (CAB CAKARAN CORPORATION BERHAD) #HomeMart #JayaGading

$CAB / 7174 (CAB CAKARAN CORPORATION BERHAD)
Research by Inter Pacific

Reading $CAB / 7174 (CAB CAKARAN CORPORATION BERHAD) 2QFY2024 QR (Period ending Mar'23) and some quick updates:

For this recent quarter, we’ll have to take into consideration that there are no more government subsidies on chicken. In the previous year’s corresponding quarter, they received RM11.75 mil of government subsidies.

With that in mind, let’s see their recent quarter performance:

- Overall recorded total revenue at RM574mil - minor increase of 0.69% vs LY mainly due to higher sales achieved by the supermarket division.
- Net profit stands at RM20 mil as compared to RM36mil vs LY same quarter, which is a 55% decrease (business seems quite badly hit without the government subsidies actually).
- There’s a 15% increase in their administrative expenses & marketing and selling expenses this quarter vs LY, considerably substantial.
- Revenue breakdown based on geography for the quarter:
Malaysia – 84.09%
SG – 15.59%
Others - 0.32%
- JV into Indonesia market still pending the other party to resolve the implementation framework.

1. Integrated poultry division
- Looking at 2QFY2024 vs 2QFY2023, revenue decreased slightly from RM542.05 million to RM541.95 million and profit from operations dropped by 38.79% from RM59.7mil to RM36.5mil. This was mostly due to a decrease in the average selling price for chicks and broilers. The selling price of chicks and broilers dropped by 13.65% and 2.61% respectively, and even if we subtract out the subsidy given (RM11.75 mil), then it would be a drop of approx. RM11.4mil.
- If comparing vs last immediate quarter, the production of chicks and broilers increased by 4% and 7% respectively and there is an increase of selling price of chicks and broilers by 7.5% and 2.9% respectively. However, the increase in the gross profit was offset by their administrative expenses & marketing and selling expenses as stated earlier.

2. Supermarket division
- Recorded a higher revenue of RM37.65 million, still mainly driven by sales generated by two newly opened outlets in the previous FY.
- It is however still loss-making from operations dragged down by lower margin as well as higher marketing and selling expenses.

3. Fast-food division
- Still recording a loss after operations of RM0.12mil despite having a higher revenue of RM1.1mil.

General prospects and environment:
- Feed cost is expected to remain stable
- Demand for chicken is stable
- However there is some downward pressure on the selling price due to oversupply of frozen chicken from other countries being dumped into Malaysia.


Read my write-up on 1QFY2024 QR here: https://cutt.ly/VeoM2Dl3

Changes in Director's Interest (Section 219 of CA 2016) - MR CHUAH HOON PHONG

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - MR CHUAH AH BEE

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MADAM CHAN KIM KEOW

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR CHUAH AH BEE

Companies likely to benefit from the increase in Malaysian food exports to Japan

According to recent reports, Malaysia is a major food exporter to Japan, with food product exports reaching RM8.93 billion or 291 billion yen in 2023. These exports include agrifood products such as beverage preparations, processed foods, and seafood, as per Japanese government trade statistics. Additionally, Japan is exploring new products like durian, which could benefit several Malaysian companies. Here are some companies that might gain from this increased export activity:

📌 $PLS / 9695 (PLS PLANTATIONS BERHAD)
PLS is involved in forest and oil palm plantation management, durian-related businesses (including plantation, contract farming, trading, and retail of downstream products), wood-based activities, and civil engineering and construction. In FY23, PLS signed a Heads of Agreement (HOA) with Japan's Millennium Agriculture Technology and MyFarm Inc Japan to explore large-scale durian cultivation in Malaysia. This positions PLS to benefit from the rising demand for durian in Japan.

📌 $CAB / 7174 (CAB CAKARAN CORPORATION BERHAD)
CAB is one of Malaysia's largest integrated poultry producers, engaged in breeding and farming of grand-parent stocks, producing breeder eggs and hatching eggs into day-old chicks, broiler chicken farming, trading of poultry feeds and farm consumables, processing chicken, and manufacturing meat-based food products. In FY23, Japan contributed only 0.1% to its overall revenue. However, with the Japanese government encouraging more Malaysian product imports, CAB could see a revenue increase in Japan.

📌 $OFI / 7107 (ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD)
Oriental Food manufactures and markets biscuits, cakes, snack foods, and confectioneries. Its FY23 annual report indicates that its products are already exported to Japan, though specific figures were not mentioned. This presents an opportunity for OFI to increase its revenue in Japan.

📌 $QL / 7084 (QL RESOURCES BERHAD)
QL operates Family Mart convenience stores in Malaysia and is involved in integrated livestock farming, marine products manufacturing, and palm oil and clean energy production. They produce QL Sakura chicken eggs using Japanese methods, providing them with an opportunity to capitalize on increased exports to Japan.

These companies are well-positioned to benefit from the growth in Malaysian food exports to Japan. Are there any other companies you think could also gain from this opportunity?

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Intention to Deal During Closed Period

Change in Boardroom - MR CHEW CHEE KHONG

General Meetings: Outcome of Meeting

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR CHUAH AH BEE

Changes in Director's Interest (Section 219 of CA 2016) - MR CHUAH AH BEE

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MADAM CHAN KIM KEOW

Changes in Director's Interest (Section 219 of CA 2016) - MR CHUAH HOON PHONG

Reading $CAB / 7174 (CAB CAKARAN CORPORATION BERHAD) 1QFY2024 QR (Period ending Dec'23) and some quick pointers:
- Revenue at RM548mil - minor decrease 1.58% vs LY due to lower sales achieved by the integrated poultry division.
- Net profit at RM38.38 mil - 8.3% decline vs LY due to lower yoy gain on fair value adjustment of the Group's biological assets, coupled with higher tax expenses.
- Integrated poultry division (decreased 1.98%) due to ASP of chicks and broilers decreased by 12.66% and 5.68% respectively. However, the lower feed costs compared to the previous quarter resulted a higher PBT.
- Higher profit from operations is mainly from higher government subsidies (RM39.8mil).
- The supermarket division recorded a higher revenue of RM36.01 million, mainly due to sales generated by two newly opened outlets in the previous FY, but still loss from operations dragged down by lower margin as well as higher marketing and selling expenses.
- Even though the fast-food division achieved a higher revenue to RM0.62 million, it recorded a loss from operation of RM0.12 million. This was mainly due to the pre-operating expenses being charged out for a new outlet during the quarter.
- Revenue breakdown based on geography for the quarter:
Malaysia - 85.2%
SG - 14.4%
Others - 0.4%

General prospects and environment:
- Given the recent shortage of pork and eggs, it is anticipated that demand for chicken meat would continue to be high.
- In the upcoming quarter, the price of broiler is expected to remain stable despite downward pressure on the selling price due to oversupply of broiler.
- Feed prices has been continuing to fall in recent months.
- Removal of price controls and subsidies for chicken, effective from 1st Nov 2023, to monitor impact in next QR.

Other things to take note:
- Expected CAPEX for upgrading facilities - https://cutt.ly/ww0SMlSx
- Incorporated a new subsidiary company (50% owned), Home Mart Southern Fresh & Frozen Sdn. Bhd. (“HMSF”) in Malaysia on 13 October 2023.
- Struck off wholly-owned subsidiary, CAB Marine Resources Sdn. Bhd. (https://cutt.ly/yw0SMzxa)
- The Company had issued corporate guarantees of RM916.18 million (31 December 2022: RM875.72 million) as security to FI and suppliers for banking facilities and/ or credit terms respectively
- JV into Indonesia market still pending the other party to resolve the implementation framework.

For some background read on their previous FY: https://cutt.ly/3w0SMcKd

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR CHUAH AH BEE

Changes in Director's Interest (Section 219 of CA 2016) - MR CHUAH HOON PHONG

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MADAM CHAN KIM KEOW

Changes in Director's Interest (Section 219 of CA 2016) - MR CHUAH AH BEE

CAB机构2024财年首季净利报3838万令吉
CAB机构拥有超过 2 亿令吉的现金，寻求通过战略收购加速增长
$CAB / 7174 (CAB CAKARAN CORPORATION BERHAD) #FinancialReport #FY2024

CAB CAKARAN REPORTS RM38.38 MILLION NET PROFIT FOR Q1 FY2024
With cash of over RM200 million, CAB seeks to accelerate growth with strategic acquisitions

$CAB / 7174 (CAB CAKARAN CORPORATION BERHAD) #FinancialResult #FY2024

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

Changes in Director's Interest (Section 219 of CA 2016) - MR LOO CHOO GEE

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings During Closed Period

Annual Report & CG Report - 2023

PART A - PROPOSED RENEWAL OF THE AUTHORITY FOR THE PURCHASE OF THE COMPANY'S OWN ORDINARY SHARES OF UP TO TEN PER CENTUM (10%) OF THE COMPANY'S TOTAL NUMBER OF ISSUED SHARES PART B - PROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE AND PROPOSED NEW SHAREHOLDERS' MANDATE FOR ADDITIONAL RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE