MAGNI
Magni-tech Industries Berhad
Company Background
$MAGNI / 7087 (MAGNI-TECH INDUSTRIES BERHAD)
Research by PBIV
@bursameme jackpot, $MAGNI / 7087 (MAGNI-TECH INDUSTRIES BERHAD) 23 sen dividend announced.
People invest in Magnificent 7
I still waiting for $MAGNI / 7087 (MAGNI-TECH INDUSTRIES BERHAD) thick wallet payout
U.S. has Magnificent 7.
Malaysia has the MAGNI-ficent $MAGNI / 7087 (MAGNI-TECH INDUSTRIES BERHAD) 🤣
*I bet someone would steal this tagline very soon 🤓 cough cough*
Anyway, here's some quick takeaway after reading their AR and latest QR -
Business Overview:
Magni Group manufactures and supplies garments and a wide range of flexible plastic and corrugated packaging products.
The top five markets contribute 91.4% of the total revenue during FYR 2024:
- United States of America (29.5%),
- European Countries (22.9%), China (18.1%)
- Other Asian Countries (14.2%)
- Malaysia (6.7%)
Garment business (contributes around 94% of revenue)
- Wholly-owned subsidiary, South Island Garment Sdn Bhd (SIG) operates both locally and in Vietnam. Vietnam operations are carried out through strategic manufacturing partnership with its Vietnamese partner.
- 45 years of experience in the apparel industry.
- Manufacturer of high-quality and sophisticated woven sportswear.
- Mainly exports its products to international markets such as USA, European Countries, China, Asia Pacific, Latin America and Australia.
Packaging Business (contributes around 6% of revenue)
- 2 subsidiaries (South Island Plastics Sdn Bhd & Inter-Pacific Packaging Sdn Bhd ) which have manufacturing facilities in Malaysia.
- In operation for more than 30 years.
- The packaging products are typically used by the manufacturing sector, such as the food, beverage, healthcare, rubber based, consumer household and electronic sub-sectors.
- Although the packaging products are mainly sold locally, a high percentage of them are used in the packaging of manufactured products destined for the export markets.
Dividends:
- For FYR 2024, payout ratio was 39.8% (FYR 2023: 40.9%) while based on cash flow, the payout ratio was 36.1% of the free cashflow (FYR 2023: 79.9%).
- No formal dividend policy but has been practicing a payout ratio ranging from 30.7% to 40.9% over the past 5 years.
Other remarks:
They are so freaking net cash that they have RM634mil in bank deposits and cash balances… and their total liabilities is just RM189mil
1/4
$MAGNI / 7087 (MAGNI-TECH INDUSTRIES BERHAD)
$MAGNI / 7087 (MAGNI-TECH INDUSTRIES BERHAD)
Research by Public
Outperform – TP RM3.02
" Lifted by Apparel Sales”
Magni-Tech (Magni)’s 1QFY25 core net profit jumped 56% YoY to RM44.5m, mainly driven by stronger sales from the garment segment. Results were above our expectations, accounting for 34% of our full-year forecasts. The discrepancy in our numbers was mainly due to the stronger-than-expected sales. We adjust our earnings forecast upwards by 7-10% for FY24-26F, to account for the robust sportwear demand. Going forward, we are still optimistic on Magni’s future growth on increasing awareness among consumers towards health and wellness which should lead to stronger apparel sales. We change our valuation methodology from SOP to Dividend Discount Model (DDM) with a TP of RM3.02, to better reflect Magni’s value in anticipation of steady dividend distribution due to stable earnings growth. Maintain Outperform. On a side note, Magni declared a higher interim dividend of 5sen (1QYF24: 2.8sen).
Analyst:
Wong Ling Ling
wong.lingling@publicinvestbank.com.my
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KP HOLDINGS SDN. BHD.
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - TAN SRI DATO’ SERI TAN KOK PING
Changes in Director's Interest (Section 219 of CA 2016) - TAN SRI DATO' SERI TAN KOK PING
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KP HOLDINGS SDN. BHD.
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - TAN SRI DATO’ SERI TAN KOK PING
Changes in Director's Interest (Section 219 of CA 2016) - TAN SRI DATO' SERI TAN KOK PING
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TAN POAY SENG
Changes in Director's Interest (Section 219 of CA 2016) - MR TAN POAY SENG
$MAGNI / 7087 (MAGNI-TECH INDUSTRIES BERHAD)
$MAGNI / 7087 (MAGNI-TECH INDUSTRIES BERHAD) yesterday good good
$SUPERLN / 7235 (SUPERLON HOLDINGS BERHAD) today u better good good also
😘
MAGNI - Notice of Book Closure
KUALA LUMPUR: Magni-Tech Industries Bhd, which saw its net profit jump 33.6% in the fourth quarter ended April 30 (4Q24), remains cautiously optimistic for the financial year ending April 30, 2025 (FY25).
OTHERSMagni-Tech Industries Berhad ("Magni" or "the Company")
- Reason for Variation On the Rate of Dividend Declared Compared to Corresponding Period in Previous Financial Year
Quarterly rpt on consolidated results for the financial period ended 30/04/2024
Fourth Interim Dividend
DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings During Closed Period
Changes in Director's Interest (Section 219 of CA 2016) - MR TAN POAY SENG
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TAN POAY SENG
Changes in Director's Interest (Section 219 of CA 2016) - MR TAN POAY SENG
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TAN POAY SENG
DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings During Closed Period
DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings During Closed Period
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR TAN POAY SENG
Changes in Director's Interest (Section 219 of CA 2016) - MR TAN POAY SENG