Cck Consolidated Holdings Berhad

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) CCK Surpasses RM1 Billion Revenue Milestone

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$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)
Research by PBIV

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) joins the special dividend train, declares 5 sen special dividend just before the year ends

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)
Research by PBIV

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)
Research by APEX

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) Achieves Record Revenue Of RM791.8 million And PBT Of RM83.4 million In 9MFY2024

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$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)
Research by APEX
HOLD – TP RM 1.64

" Disposal of Subsidiary in Indonesia to Creador”

• CCK has signed an agreement with private equity firm, Creador Sdn Bhd’s special purpose vehicle, Astrania Sdn Bhd to divest 40.0% stake in the Group’s Indonesia unit, PT Adilmart Tbk for RM163.1m.
• We are Neutral on the disposal. Although the disposal allows CCK to raise cash for debt repayment and working capital needs, CCK is already in net cash position prior to the corporate action.
• The disposal will be earnings dilutive, expected to reduce core net profit by -9.7%/-9.5% to RM79.4m/RM80.2m for FY25F/FY26F respectively.
• Maintained our HOLD recommendation with a lower TP of RM1.64 based on revised FY25F EPS of 12.6 sen pegged to 13.0x P/E multiple.

Analyst:
Chelsea Chew
chelsea.chew@apexsecurities.com.my

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) Announces Strategic Partnership With Creador Through Sale of 40% Stake In PT Adilmart

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$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)
Research by Public
Neutral - TP RM1.60

"Higher Demand for Consumer Staples"

CCK’s 2QFY24 core net profit rose by 15.6% YoY to RM19.7m, mainly due to improved performance from the poultry, prawn and retail segments. Cumulative 1HFY24 core net profit of RM40.9m was in-line with our and consensus expectations, accounting for 53% and 50% of full-year estimates, respectively. Although results were in-line, we raise our forecast for FY24-26F by an average of 7%, as we expect CCK to chalk better earnings in 2HFY24, mainly attributable to the festive spending in 4QFY24. We upgrade our call in CCK to Neutral from Underperform with TP of RM1.60, pegged to a higher PE multiple of 11x FY25F EPS, close to its +1SD 5-year average forward PE (see figure 1). We see the valuation justified as we expect demand for consumer staple goods to remain healthy on higher consumer disposable income.

Analyst:
Wong Ling Ling
wong.lingling@publicinvestbank.com.my

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)
Research by Apex
Hold - TP RM1.82

"Driven by stellar retail and poultry segments"

• CCK’s 2QFY24 core net profit stood at RM20.8m (+2.5% qoq, +24.4% yoy), bringing 1HFY24 core net profit to RM42.2m (+28.2% yoy), came in line with ours and consensus’ expectations, accounting for 48.5% and 54.0% of ours and consensus forecasts respectively.
• As a result, we kept our earnings forecast unchanged.
• Re-iterate HOLD recommendation on CCK with a higher target price of RM1.82 by pegging at a higher P/E multiple of 13.0x to FY25F EPS of 14.0 sen.

Analyst:
Chelsea Chew
chelsea.chew@apexsecurities.com.my

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) Reports Revenue Of RM532.3 Million And PBT OF RM53.0 Million In 1HFY2024

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F&B Players in Bursa Malaysia!

As Malaysians, we love our food. From the cream crackers with teh to our roti canai, we enjoy our local snacks and dishes everyday. But, did you ever consider that there are public listed companies manufacturing the food and beverages with consume? The F&B industry in Malaysia includes a diverse range of companies which play a key role to our nation’s Economy. Some of these companies are deeply rooted in Malaysia, while others are global players with strong local presences.

Here’s a closer look at some of the listed F&B players on Bursa Malaysia! Which companies do you support, and would they make compelling investment choices? Let us know in the comment section below!

$NESTLE / 4707 (NESTLE (MALAYSIA) BERHAD) $KLSE-F&N $DLADY / 3026 (DUTCH LADY MILK INDUSTRIES BERHAD) $HUPSENG / 5024 (HUP SENG INDUSTRIES BERHAD) $CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)

Continuing the list here (part 3):

$PECCA / 5271 (PECCA GROUP BERHAD) (MC: RM917.4Mil) - Dividend payout policy of 40%
$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) (MC: RM984mil) - Dividend policy of paying up to 30% of PATMI
$AMWAY / 6351 (AMWAY (MALAYSIA) HOLDINGS BERHAD) (MC: RM1.15bil) - Dividend payout policy of not less than 80% of the annual net earnings
$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) (MC: RM1.16bil) - Dividend payout approx. 50% of PAT
$VSTECS / 5162 (VSTECS BERHAD) (MC: RM1.2bil) – Dividend payout of minimum 30% of net profit

MC: Approximate Market Cap

**Note: the dividend payout is subjected to cash flow, valuation gain/loss of properties, etc. (for details please read their respective annual reports)

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) - PUAN SRI DATIN WONG BAK HEE

Changes in Director's Interest (Section 219 of CA 2016) - TAN SRI DATUK TIONG SU KOUK

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) ‘s Q1FY24 Quarterly Report Summary:

# Comparing current quarter (Q1FY24) with preceding year corresponding quarter (Q1FY23):

- Rev increased by 8% to RM 260.72 mil due to outperformance from the retail segment and improved performance from the poultry segment, which offset the decline in the prawn and food service segments. Retail segment grew 10.1% due to matured contri from their established retail network. Total poultry segment rev increased by 14.5% to RM 93.2 mil due to higher sales vol from their institutional clients and their own retail stores. The prawn segment’s rev declined marginally as export sales vol to key market moderated, but this was cushioned by higher sales via their own retail channels.
- Gross profits rose by 28% to RM 62.62 mil.
- PBT climbed by 31% to RM 27.46 mil due to outperformance from the retail and poultry segments. Better retail segment profitability was driven by a more favorable product mix and increase sales vol. Higher poultry segment profitability was due to effective cost control, a strategic alignment of the product mix and favorable movement in feed input costs. Prawn segment’s profitability was resilient and marginally higher than the previous quarter despite decrease in export sales vol because of higher domestic sales and better ASP in key export markets. Lower food service segment profitability was due to lower sales vol.
- Gross margins improved to 24% from 20.3%.
- PAT also climbed by 32% to RM 21.37 mil
- Net profit margin rose from 6.7% to 8.2%.
- EPS improved from 2.60 sen to 3.44 sen.
- NOCF decreased by 53% to RM 8 mil due to increase in current assets and higher income tax paid.
- Net cash.
- Geographical Revenue Segmentation: Malaysia (74%), Indonesia (19%), Japan (5%) and Taiwan (1%).
- No additional stores were opened in Q1FY24.

# Comparing current quarter (Q1FY24) with immediate preceding quarter (Q4FY23):

- Rev increased by 25 to RM 260.72 mil. Retail segment delivered a marginally higher rev of RM 203.3 mil due to healthy overall sales vol from our established retail network and robust demand for their Indonesia sides’ in-house manufactured processed products. Total poultry segment recorded an 5.3% increase to RM 93.2 mil due to higher demand. Prawn segment’s rev decreased marginally to RM 21.8 mil due to lower export sales vol, but this was cushioned by higher local sales. Food service segment reported lower rev of RM 4.8 mil due to lower sales vol and demand from the gov schools in Sarawak covered under their supply contracts.
- Gross profits improved by 7% to RM 62.62 mil.
- PBT however dropped by 3515 to RM 27.46 mil due to high base effect, as the poultry segment benefitted from the Gov subsidy in relation to the price ceilings for chicken and eggs in Q4FY23.
- Gross margins improved to 24% from 22.9% as the overall profitability of all key segments remained robust.
- PAT also dropped by 33% to RM 21.37 mil.
- Net profit margin worsened from 12.4% to 8.2%.

# Prospects:

- Employing a vertically integrated biz model, this enables them to exert greater control over their supply chain and operations.
- The volatility of the USD against MYR remains a concern as it leads to fluctuations in prices of corn and soy.
- Feed prices constitute a significant portion of the poultry segment’s costs.
- Strategically expanding their retail network remains integral to their growth trajectory, with a concerted focus on optimizing economies of scale and enhancing the efficiency of their fully integrated supply chain.
- The Group is cautiuosly optimistic with regards to the financial performance of the remaining quarters of the current FY.

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)
Research by PIB
Underperform – TP of MYR 1.20

"Within Expectations”

CCK’s 1QFY24 core net profit grew by 45.1% YoY to RM21.2m, largely driven by greater contribution from the poultry segment on lower feed input costs, and higher sales from its retail segment on stronger consumer demand. Results were in-line with our and consensus expectations, accounting for 27.4% and 25.8% of full-year estimates, respectively. We tweak our earnings by

Analyst(s):
Wong Ling Ling
wong.lingling@publicinvestbank.com.my

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) Reports Quarterly Revenue Of RM260.7 mil And PBT Of RM27.5 mil In Q1FY2024

Bursa Announcement:
https://cutt.ly/weuhDDug

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General Meetings: Outcome of Meeting

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

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.

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD)
Research by PIB
Underperform – TP of MYR 1.20

“Proposed Investment in Subsidiary ”

CCK announced that it entered into a binding term sheet with Astrantia SB, a SPV by Creador SB for the proposed investment in CCK’s subsidiary PT Adilmart (Adilmart). Astrantia is proposing to acquire a total of 40% stake in Adilmart for a total of RM170.3m. The proposed acquisition will be satisfied via the purchase of existing shares and subscription of new shares. We are keeping our earnings estimates unchanged at this juncture, pending further clarity on the proposed investment. While we are positive that the proposed investment would drive further growth in CCK’s Indonesia operations, we believe that its share price has already captured this potential growth. CCK is currently trading at a premium valuation, +1SD of its 5-year average forward PE. Given the limited upside potential, we downgrade our call on CCK to Underperform. As we rollover our valuation base year to FY25F EPS, our TP is revised to RM1.20.

Analyst(s):
Wong Ling Ling
wong.lingling@publicinvestbank.com.my

PETALING LAYA: CCK Consolidated Holdings Bhd has signed an agreement with Astrantia Sdn Bhd, a special-purpose vehicle (SPV) of Creador Sdn Bhd, which will see Astrantia making a RM170.3mil investment to acquire 40% stake in CCK’s subsidiary, PT Adilmart.

PETALING LAYA: CCK Consolidated Holdings Bhd (CCK) has signed an agreement with Astrantia Sdn Bhd, a special purpose vehicle company of Creador Sdn Bhd, where in Astrantia will make a RM170.3mil investment to acquire a 40% stake in CCK's subsidiary, PT Adilmart.

$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) Enters Into Binding Term Sheet With Creador

Bursa Announcement:
https://cutt.ly/veyEg7Pj

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OTHERSCCK CONSOLIDATED HOLDINGS BERHAD ("CCK" OR "COMPANY")

EXECUTION OF A BINDING TERM SHEET BETWEEN CCK AND ASTRANTIA SDN BHD IN RELATION TO THE PROPOSED INVESTMENT IN A SUBSIDIARY OF THE COMPANY

20-May-24 - CIMB Securities - $CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) Proxy to East Malaysia’s food security - Non-rated