Malaysia Smelting Corporation Berhad

We can see a number of cash rich companies announcing special dividends. This may, or may not, be due to the dividend tax coming into play next year. For example:

$KMLOONG / 5027 (KIM LOONG RESOURCES BERHAD) and $UTDPLT / 2089 (UNITED PLANTATIONS BERHAD) (have been declaring special dividends for many years already)
$LYSAGHT / 9199 (LYSAGHT GALVANIZED STEEL BERHAD) as discussed by @benghooi and @realalvinang before
$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD) with a substantial 17 sen special dividend for the first time in over a decade
$KOSSAN / 7153 (KOSSAN RUBBER INDUSTRIES BERHAD) also declares a special dividend
Pecca, Hexza, TMCLIFE, hupseng, far east and more.

What are some similarities of these few companies declaring these dividends? Some are record high, some are highest in a few years-- are these dividends coming from improved business operations, or appropriation of cash in the balance sheet that is expected not to be utilised in the near future?

Which other companies could potentially give a surprise bumper dividend before the year ends?
Many listed companies in Bursa are cash rich (or even cash hoarding, some might say); could there be any other which could be compelled to issue dividends soon?

Of course, as usual, due diligence is required and it's typically not a good idea to be fixated on just this singular facet (of special dividends due to the upcoming dividend tax). But it's something to think about. After all, if a major shareholder was to receive the money from the business they have been handling for years; now would be as good a time as any.

$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD)
MSC DECLARES INTERIM DIVIDEND OF 7.0 SEN PER SHARE FOR FY2024

Bursa Announcement: https://bit.ly/3XZzv28

$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD)
Research by Malacca
Cease Coverage

“1H24 Below Expectations"

Below expectations. Malaysia Smelting Corporation Bhd (MSC) registered 2QFY24 core PATMI of RM16.7m (-9% QoQ, -41% YoY), bringing the 1H24 core PATMI to RM35.0m. The 1H24 core PATMI only accounted for 37% of our and consensus estimates of RM95.4m and RM93.5m, respectively, and it is below expectations. Key deviations were mainly due to softer tin smelting performance amid the annual re-bricking and scheduled maintenance of the TSL furnace (mid-May to mid-July).

Analyst:
Loui Low
louilow@msec.com.my

$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD)
Research by MPlus
Buy – TP of MYR 3.40

“Recovery In Sight”

Upgrade to Buy, with unchanged TP of RM3.40 as the share price has retraced from RM3.38 range towards the recent low point of RM2.48. Our TP is based on an assigned P/E of 15.0x pegged to its FY24f EPS of 22.7 sen. The 15x P/E is justified at a ~30% discount to its 5Y average P/E 21.4x as we are in a commodity upcycle phase with rising investments in the EV, solar and E&E and the recent China recovery. The ongoing supply constraints of tin ore in Indonesia and Myanmar and the highly correlated MSC price with tin price despite earnings volatility may drive the P/E elevated going forward.

Analyst(s):
Loui Low
louilow@msec.com.my

General Meetings: Outcome of Meeting

$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD)
Research by Malacca
Hold – TP RM3.41

“Started FY24 Within Expectation"

Upgrade to HOLD, with higher TP of RM3.40. We upgrade to HOLD (from Sell) and revised the TP higher to RM3.40 (from RM1.82). Our TP is based on an assigned P/E of 15.0x (revised from 8.0x) pegged to its FY24f EPS of 22.7 sen. The 15x P/E is justified at a 30% discount to its 5Y average P/E 21.3x as we are in a commodity upcycle phase with rising investments in the EV, Solar and E&E and the recent China recovery. The ongoing supply constraints of tin ore in Indonesia and Myanmar and the highly correlated MSC price with tin price despite earnings volatility may drive the P/E elevated going forward.

Analyst:
Loui Low
louilow@msec.com.my

$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD)
MSC REPORTS NET PROFIT OF RM18.2 MILLION FOR 1QFY24

Bursa Announcement: https://bit.ly/4axfOBB

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

OTHERSMEDIA RELEASE ON QUARTERLY RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH 2024

Annual Report & CG Report - 2023

MSC - Notice of Book Closure

General Meetings: Notice of Meeting

$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD)

$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD)
Research by Malacca Securities
Sell - TP of M1.82

"Ended Below Expectations for FY23"

Malaysia Smelting Corporation Bhd’s (MSC) 4QFY23 core net profit came in at RM11.0m (-7% QoQ, -62% YoY), which bring the sum to RM86.7m for FY23. The core earnings came in below expectations, amounting to 85% and 94% of ours and consensus estimates of RM101.6m and RM92.7m, respectively. Key deviations include (i) lower average tin price and (ii) additional costs provisions for staff bonus and retrenchment compensation.

Analyst:
Loui Low
louilow@msec.com.my

$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD)
MSC REPORTS NET PROFIT OF RM85.1 MILLION FOR FY23

Bursa Announcement: https://bit.ly/3I1WMHW

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

OTHERSREVALUATION IN COMPLIANCE WITH GROUP ACCOUNTING POLICY

Changes in Director's Interest (Section 219 of CA 2016) - DATO DR IR YONG MIAN THONG

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

$MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD): Increased Profits in Tin Mining

1. During Q3FY23, $MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD) reported a 5.78% increase in revenue, totaling RM364.02m year-over-year. This rise was driven by a higher average tin price of RM123,800 in 3QFY23, compared to RM104,700 in 3QFY22 per metric tonne, alongside increased sales quantity of refined tin. However, the company faced a 7.31% decrease in year-to-date revenue due to a lower average tin price of RM118,800 in 9MFY23, compared to RM148,800 in 9MFY22 per metric tonne, despite the higher sales quantity of refined tin.

2. This quarter, $MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD) achieved a profit before tax (PBT) of RM20.41m, a significant improvement compared to the loss of RM39.71m in Q3FY22. Similarly, on a year-to-date basis, the company recorded a higher PBT of RM114.26m.

3. The tin smelting segment, the largest revenue contributor, reported a loss before tax of RM3.4m in 3QFY23 compared to a loss of RM61.1m in 3QFY22. This was attributed to higher average tin price and increased sales quantity of refined tin. The TSL furnace at Pulau Indah underwent annual shutdown and maintenance since June 2023, resuming smelting activities in August 2023. In contrast, 3QFY22 witnessed sharp declines in tin prices and extended furnace outage at the Pulau Indah plant due to logistic delays in securing specialized fire-rated furnace bricks. On a year-to-date basis, the tin smelting segment recorded a profit before tax of RM51.3m in 9MFY23 compared to a loss before tax of RM32.2m in 9MFY22. The improved performance in 9MFY23 was primarily due to higher profits from increased sales of refined tin, derived from processed tin intermediates, and increased sales of by-products and smelting revenue.

4. The tin mining segment reported a PBT of RM23.8m in 3QFY23 compared to RM10.9m in 3QFY22, primarily attributed to higher average tin prices in 3QFY23. Additionally, there was a one-off provision for legal case settlement of RM4.7m in 3QFY22. On a year-to-date basis, the tin mining segment recorded a PBT of RM70.7m in 9MFY23 compared to RM121.3m in 9MFY22.

5. Despite global economic concerns such as inflation and geopolitical tensions, $MSC / 5916 (MALAYSIA SMELTING CORPORATION BERHAD) maintains a cautious approach. It is dedicated to improving operational efficiencies across its smelting and mining businesses, emphasizing technological advancements, workforce enhancements, and logistics. The Pulau Indah plant's technological upgrade is progressing for full commissioning, while the planned closure of the older Butterworth plant is anticipated to increase efficiency, reduce operational costs, and promote energy-saving measures, aiming to reduce the overall carbon footprint by up to 30% by the staged decommissioning starting in 2024. In the tin mining segment, strategies to boost daily mining output and overall productivity include expanding mining activities and resources.

KUALA LUMPUR: Malaysia Smelting Corporation Bhd’s (MSC) returned to the black in the third quarter ended September 30, 2023 (3Q23) with a net profit of RM11.82 million compared with a net loss of RM31.32 million a year ago.

© New Straits Times Press (M) Bhd

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

Change in Boardroom - MR JOHN MATHEW A/L MATHAI

OTHERSMEDIA RELEASE ON QUARTERLY RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2023

OTHERSCHANGE OF ADDRESS OF SHARE REGISTRAR AND PLACE WHERE REGISTER OF MEMBERS AND INDEX IS KEPT IN SINGAPORE

OTHERSCHANGE IN COMPOSITION OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG") COMMITTEE

Changes in Director's Interest (Section 219 of CA 2016) - MISS CHEW GEK KHIM

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

KUALA LUMPUR: Malaysia Smelting Corporation Bhd (MSC), a 52 per cent tin mining and smelting subsidiary of The Straits Trading Co Ltd (Straits Trading), is poised to scale new heights.

© New Straits Times Press (M) Bhd

OTHERSMEDIA RELEASE ON MALAYSIA SMELTING CORPORATION BERHAD ("MSC") EARNS RECOGNITION FOR "HIGHEST GROWTH IN PROFIT AFTER TAX OVER THREE YEARS" AWARD AT THE EDGE MALAYSIA CENTURION CLUB 2023