Jhm Consolidation Berhad

Titan Weekend Chart Reviews

$JHM / 0127 (JHM CONSOLIDATION BERHAD)

Had a strong breakout from its RM 0.48 main downtrend resistance on the daily chart.

For now looking strong here and as long as able to hold above its RM 0.45 support, could trend back up towards the RM 0.55+ regions soon.

Support: RM 0.45 area
Resistance: RM 0.49, RM 0.51, RM 0.53, RM 0.55 areas

$JHM / 0127 (JHM CONSOLIDATION BERHAD)
Research by RHB

$JHM / 0127 (JHM CONSOLIDATION BERHAD)
Research Report by RHB

$JHM / 0127 (JHM CONSOLIDATION BERHAD)
Research by RHB
Neutral– TP RM 0.52

"Still In The Doldrums; D/G To NEUTRAL”

D/G to NEUTRAL from Buy, new MYR0.52 TP (from MYR0.78), 4% downside. JHM Consolidation’s 1H24 results disappointed on lower-thanexpected revenue and margins. We now expect FY24 to be in the red and believe that business will only pick up significantly towards end-FY24 and in FY25, given the delays in the mass production of new automotive products and slower recovery in the semiconductor sector. We downgrade our rating on the lacklustre business outlook. However, the distressed price level may have reflected the negativity.

Analyst:
Lee Meng Horng
lee.meng.horng@rhbgroup.com

$JHM / 0127 (JHM CONSOLIDATION BERHAD)
Research by Kenanga
Market Perform – TP of MYR 0.61

“In the Red”

JHM’s 1QFY24 results disappointed. It dipped into the red on a 46% plunge in turnover, worsening the problem of its under-utilised floor space. It guided for a challenging outlook, weighed down by underutilised new assets. We cut our FY24-25F net profit forecasts by 28% and 21%, respectively, reduce our TP by 13% to RM0.61 (from RM0.70) but maintain our MARKET PERFORM call.

Analyst(s):
Samuel Tan
samueltan@kenanga.com.my

$JHM / 0127 (JHM CONSOLIDATION BERHAD)
Research by RHB
Buy – TP of MYR 0.78

“Low Utilisation Due To Production Hiatus; Stay BUY”

JHM Consolidation’s 1Q24 core loss of MYR5.1m was a miss on slower-than-expected revenue and margin. The push-out of new projects launched by customers affected the overall utilisation rate and, coupled with higher input costs, contributed to the lacklustre results. We expect the automotive side to pick up in 2H alongside the industrial segment from the semiconductor sector’s recovery. The current distressed price level presents opportunities for longer-term investors to position for the recovery.

Analyst(s):
Lee Meng Horng
lee.meng.horng@rhbgroup.com

Key Takeaways from $JHM / 0127 (JHM CONSOLIDATION BERHAD)'s AGM

Background
📌 $JHM / 0127 (JHM CONSOLIDATION BERHAD) engages in manufacturing precision miniature engineering metal parts and components.
📌 The company assembles electronic components using surface mount technology and automotive rear lighting.
📌 It also produces LED applications to support 3D effects.
📌 The Electronics Product segment generates the highest revenue.
📌 Geographically, the company exports its products to China, the United States, the United Kingdom, and Singapore.

Key Takeaways
📌 The company management indicated that its performance will show significant growth in the second half of this year and next year.
📌 The company has also signed contracts with two new clients this year, and production of these clients' products will commence in the second half of the year.
📌 Management stated that these two new clients will boost existing revenue, with growth potentially reaching 25%.
📌 The factory's productivity was not high from last year to the first half of this year; however, the management assures that all operations will return to track. Improvements are gradually being made in all aspects.

General Meetings: Outcome of Meeting

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

MEMORANDUM OF UNDERSTANDINGStatus update on the Memorandum of Understanding between JHM Consolidation Berhad and Jiangsu Dekai Auto Parts Co. Ltd.

@wsoh so the likes of $MI / 5286 (MI TECHNOVATION BERHAD) $JHM / 0127 (JHM CONSOLIDATION BERHAD) D&O and OSAT guys like $INARI / 0166 (INARI AMERTRON BERHAD) $UNISEM / 5005 (UNISEM (M) BERHAD) and maybe $PENTA / 7160 (PENTAMASTER CORPORATION BERHAD) ?

$JHM / 0127 (JHM CONSOLIDATION BERHAD) lately macam rounding up after the sell down from previous qtr. good to see see for tech recovery ? others all rebounded only jhm keep dropping down, but will it keep dropping forever ?

rhb keep saying brighter prospects ahead

STATEMENT TO SHAREHOLDERS IN RELATION TO THE PROPOSED RENEWAL OF AUTHORITY FOR THE COMPANY TO PURCHASE ITS OWN ORDINARY SHARES OF UP TO 10% OF THE TOTAL NUMBER OF ISSUED SHARES

Annual Report & CG Report - 2023

General Meetings: Notice of Meeting

OTHERSJHM CONSOLIDATION BERHAD ("JHM" or "the Company")
- Proposed Renewal of Share Buy-Back Authority

$JHM / 0127 (JHM CONSOLIDATION BERHAD)
Research by RHB
BUY - TP of RM0.85

"Commendable Results Despite Adversities; BUY"

Keep BUY and MYR0.85 TP, 22% upside, c.1% yield. FY23 core earnings beat our estimates but missed Street’s due to JHM Consolidation’s strongerthan-expected industrial segment. Slower revenue and loss of economies of scale, coupled with higher input costs dragged FY23 profitability. Current below-mean valuation vis-à-vis a potentially better FY24 makes JHM a BUY, given the potential rebound from the industrial segment’s recovery – amid the bottoming out of the semiconductor sector – and contributions from new major customers in the automotive segment.

Analyst(s):
Lee Meng Horng
+603 2302 8115
lee.meng.horng@rhbgroup.com

MEMORANDUM OF UNDERSTANDINGStatus update on Memorandum of Understanding between JHM Consolidation Berhad and Jiangsu Dekai Auto Parts Co. Ltd.

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

@portoftheyear 2024 stock picks

$YTLPOWR / 6742 (YTL POWER INTERNATIONAL BHD) - 49%
$YBS / 0025 (YBS INTERNATIONAL BERHAD) - 20%
$JHM / 0127 (JHM CONSOLIDATION BERHAD) -5 %
$AWC / 7579 (AWC BERHAD) -5%
$ADB / 0276 (AUTOCOUNT DOTCOM BERHAD) -21%

@portoftheyear
$SUPERLN / 7235 (SUPERLON HOLDINGS BERHAD) - 20%
$GFM / 0039 (GFM SERVICES BERHAD) - 20%
$SDS / 0212 (SDS GROUP BERHAD) - 20%
$KGB / 0151 (KELINGTON GROUP BERHAD) - 20%
$JHM / 0127 (JHM CONSOLIDATION BERHAD) - 20%

Change of Address

$JHM / 0127 (JHM CONSOLIDATION BERHAD)
Research by RHB
Buy (Maintain) – Target Price RM0.85

“A Slower 4Q, a Likely Comeback in FY24; BUY”

BUY, new MYR0.85 TP from MYR0.98, 14% upside with c.1% FY24F yield. JHM Consolidation’s 9M23 core earnings of MYR10.4m (-10.1% YoY) beat our estimate but missed the Street projection, due to higher-than expected margins. Lower revenue from the industrial unit and narrower margins dragged its YoY profitability. While we expect its 4Q23 numbers to tone down amid the United Auto Workers (UAW) strike in the US, investors’ likely tepid outlook may engender a potential rebound in 2024 – supported by a recovery in the industrial segment and new customer contributions.

Analyst:
Lee Meng Horng
lee.meng.horng@rhbgroup.com

Quarterly rpt on consolidated results for the financial period ended 30/09/2023

MEMORANDUM OF UNDERSTANDINGStatus update on Memorandum of Understanding between JHM Consolidation Berhad and Jiangsu Dekai Auto Parts Co. Ltd.

Change in Boardroom - MR LIM KHAI TENG

Sunway and PDC collaborate on the development of BKIP 2

https://cutt.ly/xwbjY4oo

$SUNWAY / 5211 (SUNWAY BERHAD)'s subsidiary, Umech Land Sdn Bhd, in which they hold a 70% stake, has entered into a joint development agreement with Penang Development Corp (PDC). This partnership aims to develop a 559-acre prime industrial land located in Batu Kawan, Penang. In return, PDC will be granted a land entitlement valued at RM646.02 million, comprising a RM64.6 million deposit and the balance of RM581.42 million to be paid in four installments. Both entities will collaborate on this development, which will be named 'Batu Kawan Industrial Park 2' (BKIP 2).

Before diving into BKIP 2, let's explore what BKIP represents. BKIP refers to an industrial area situated within Seberang Perai. This expansive 2680-hectare industrial park lies at the southern end of the newly developed Batu Kawan Township and is conveniently linked to George Town, the island city, via the Second Penang Bridge. As a result, it has become a favored choice for both local and multinational companies seeking to establish factories in the region. There are two primary reasons behind this selection: the relatively lower land prices compared to Bayan Lepas and the strategic location facilitated by the Second Penang Bridge. Many firms with existing factories in Bayan Lepas have expanded their operations by setting up secondary facilities in Batu Kawan, including notable companies like $INARI / 0166 (INARI AMERTRON BERHAD), $JHM / 0127 (JHM CONSOLIDATION BERHAD), and $PENTA / 7160 (PENTAMASTER CORPORATION BERHAD). Additionally, numerous multinational corporations such as Boston Scientific, HP, and Seagate have also established a presence there. Apart from being an industrial hub, Batu Kawan offers amenities such as shopping malls and educational institutions, including Design Village, IKEA, UOW Malaysia KDU, and Peninsula College.

BKIP was once a subject of significant interest and was predicted by some experts to eventually surpass Bayan Lepas. However, the COVID-19 pandemic had an impact on its development trajectory. Nonetheless, the future outlook for Batu Kawan remains promising, particularly with the forthcoming development of BKIP 2. This development aligns with the vision outlined in NIMP 2030, and it’s worth remembering the statement of the Penang Chief Minister, who asserted that 'The Future of Penang is in Seberang Perai.

The New Industrial Master Plan 2030 (NIMP 2030) is integral to the Ekonomi MADANI framework, aimed at advancing economic reforms. It focuses on the development of 21 sectors with the goal of generating 3.3 million high-value jobs by 2030. Among these sectors, five are considered top priorities: aerospace, chemical, electrical and electronics (E&E), pharmaceutical, and medical devices.

1. Aerospace: Malaysia has about 230 companies involved in aerospace activities, including maintenance, manufacturing, education, and training. Local companies like UMW Aerospace (subsidiary of UMW) and CTRM (subsidiary of DRBHCOM) play crucial roles in the worldwide aerospace supply chain. Additionally, there are supporting company like Morrissey Integrated Dynamics Sdn Bhd ( $JHM / 0127 (JHM CONSOLIDATION BERHAD) ).

2. Chemical: The chemical industry contributes 6% to Malaysia's GDP and employs a substantial workforce. The government aims to move beyond base chemicals to produce higher-value specialty chemicals. Major players in this sector include CCM Chemicals Sdn Bhd (CCM), Malay-Sino Chemical Industries Sdn Bhd (BKAWAN), and $NYLEX / 4944 (NYLEX (MALAYSIA) BERHAD).

3. Electrical and Electronics (E&E): Malaysia's E&E sector contributes about 6.3% to the GDP. While the midstream semiconductor industry is strong, the country seeks more local participation in upstream and downstream development. Among the players are $INARI / 0166 (INARI AMERTRON BERHAD), PENTA, MI, GREATEC, MPI, etc.

4. Pharmaceutical: Local pharmaceutical manufacturers produce various products, including new drugs, generics, health supplements, and traditional medicines. The sector also engages in contract manufacturing for multinational corporations. Among the players are $DPHARMA / 7148 (DUOPHARMA BIOTECH BERHAD), KOTRA, NOVA etc.

5. Medical Devices: Malaysia's medical devices industry manufactures advanced products like cardiac pacemakers, orthopedic devices, and medical gloves. Penang is a hub for high-end medical device manufacturing. Among the players are $TOPGLOV / 7113 (TOP GLOVE CORPORATION BHD), HARTA, KOSSAN, UWC, LKL etc.

These sectors play a crucial role in Malaysia's industrialization efforts, contributing to economic growth and job creation.

If I've made any mistakes or overlooked anything, please feel free to mention it in the comments below.

MEMORANDUM OF UNDERSTANDINGMemorandum of Understanding entered between JHM Consolidation Berhad and Jiangsu Dekai Auto Parts Co. Ltd.

$JHM / 0127 (JHM CONSOLIDATION BERHAD)
Research by RHB
Buy (Maintain) – Target Price RM0.98

“Solid Automotive, Dragged By Industrial; BUY’

Maintain BUY, new MYR0.98 TP from MYR0.85, 28% upside with c.1% FY24F yield. 1H23 core earnings missed expectations on the industrial segment’s losses and margins compression dragged by higher input costs and product mix. While the semiconductor-related business’ recovery pace may be a gradual one, JHM Consolidation’s new automotive customer is expected to contribute significantly in FY24 and current valuation is undemanding, considering the relatively strong automotive orders visibility.

Analyst:
Lee Meng Horng
lee.meng.horng@rhbgroup.com