JB Foods

[thefarside]

Hi ngcheeki you are correct - the metrics look much better than what I thought they were at.

[propertyinvestor]

Trading Halt. Hopefully its a buyout offer from Guan Chong.

[propertyinvestor]

WOW! Popiah King becomes a significant shareholder of JB Foods!

[yeokiwi]

http://info.sgx.com/webcoranncatth.nsf/V...C005464A5/$file/JB.Foods.Limited_Press.Release.pdf?openelement

Sam Goi's magic touch.

[greengiraffe]

Dont bother to analyse the results. Just ride and trust the latest impact - Sam Goi's effect.

[weijian]

JB Foods exec directors defer bonuses

MALAYSIA - Executive directors at cocoa ingredient maker JBFoods have agreed to delay receiving last year's performance bonuses in view of the firm's losses for the first half of this year. If the firm continues to do badly by the end of this year, last year's bonuses will be partially or totally clawed back - a rare move which has been hailed as good corporate governance by other directors and the local investors' lobby group.

http://business.asiaone.com/news/jb-food...er-bonuses

[freedom]

just not long ago, it was a darling of the market. just shows how much speculations hurt.

[¯|_(ツ)_/¯]

jb food@60
1H2021 result with 0.2 cents dividend
https://links.sgx.com/FileOpen/JBFL%20-%...eID=678262

https://drive.google.com/open?id=1EQX2iV...n5aOHV49U_

Stay home and stay safe, everyone.

[Behappyalways]

A pretty good counter to me

A 3% yield 'bond' with capital appreciation(privatisation)

Came across this stock many months ago. Everything looks good to me except that it is illiquid. Too 'small' for me and my relative to invest hence only my relative is vested.

This stock is kinda like a bond with capital appreciation potential.

The dividend is around 3% and you hold while waiting for the significant shareholders continuing to increased their stake.

When and if the day comes and they decide to privatised, the annualised return might turn out to be attractive depending on the takeover share price and time duration you hold.

Their latest half operating cashflow is negative because of increased in inventories. My guess is they are building up stock in preparation of rising cocoa price. Hence not a worry but a positive.

For those vested, one should take note of its dividend(your holding cost) and nta(will affect the takeover price).

As for the downside. Probably it is the price that the significant shareholders are willing to buy off from you.

Anyway not vested.

[weijian]

JB Foods, a cocoa ingredient manufacturer, looks to be another "victim" of the current volatility/rise in prices of cocoa.

- It is an intermediary of the "cocoa-to-yummy taste" value chain - so probably doesn't command much branding power towards the "yummy taste" of the consumer's mouth, and subjected to volatility of prices from the raw material itself.

- It has ~150% leverage ratio (total debt/equity), and >80% of the loans are "current". In 2H23, EBIT is negligible and is not enough to cover interest costs. On a FY23 basis, ICR (EBIT/interest cost) is 1.1X.

- As a consumer of cocoa, hedging normally benefits you if cocoa prices spike up since it negate your COGS increase. So the fair value MTM losses are disturbing.

- At end FY23, inventories have ballooned by ~90mil (or slightly >50% of equity). The increase is all coming from "finished goods" (ie. cocoa powder/butter etc). Normally when this happens, it is a good sign of things to come as Mgt expects much better business in the coming period. But from the PR, there does not seem to be much optimism. Is this inventory increase a sign of things to come OR simply a snapshot of the balance sheet that is not representative of actual ground situation?

The cost of sales increased by USD94.0million or 20.4% from USD461.5million to USD555.5million in FY2023, mainly due to increases in cocoa bean prices. There is a fair value mark-to-market loss of USD12.3million relating to hedging activities, which was recognised as at year end due to unprecedented sharp volatility in cocoa bean prices. Accordingly, the Group’s gross profit has decreased by USD7.8million or 16.3% from USD48.1million to USD40.3million.

FY23 results:
https://links.sgx.com/FileOpen/JBFL%20-%...eID=790203

FY23 results PR:
https://links.sgx.com/FileOpen/JBFL%20-%...eID=790204