Khong Guan

[brattzz]

I like Khong Guan's saw tar piah! it's old school and still taste good...
but the biscuits making biz does not make sense anymore and is costly in sg...

Trading flour is an pass-time job only...
Now going into heritage industrial building and maybe another pass-time job of biscuits tourism...

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 Vseeker pid='134062' dateline='1477379772']

http://infopub.sgx.com/FileOpen/Acquisit...eID=425155

http://infopub.sgx.com/FileOpen/PressRel...eID=425156

Lian Beng acquires 8-storey freehold Khong Guan Industrial Building at 20 Mactaggart Rd for S$31 million



Based on 25,813,000 outstanding shares, EPS is 1.20/share. Current NAV is 2.43 and it will be 3.63 when the sale completed. Zero debt with minimum capex, is a special div on the way? 
Share price has risen from 1.9+ to 2.32 (last closing), let's see....

SGX-listed unit is Khong Guan Flour Milling Limited ("KGFM")
dun think listed KGFM has any interests in No 20 Mactaggart Rd  (Khong Guan Industrial Building).

But Listed KGFM own the immediate neighbour - No 2 Mactaggart Rd (Khong Guan Biscuit Factory), which is a 50-yrs old, 3-storey building,
it is currently being redevelop into a 8-storey building to fully utilised its 2.5x plot ratio.
from existing 3-storey 1125 sqM GFA =} to a new 8-storey building with approx 2550 sqM GFA

2550m2 GFA is abt 27000ft2
assume 60% usable area i.e. 16200ft2 that can be rented out
if rental per ft2 per month is $1.20, annual rental=233k
if rental per ft2 per month is $1.80, annual rental=350k
if rental per ft2 per month is $2.00, annual rental=388k
if rental per ft2 per month is $2.50, annual rental=486k

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Captain Oats go abroad

With an annual turnover exceeding RM100m, Federal Oat Mills Sdn Bhd now owns a 15% market share of the edible oat products in Malaysia.
China imported approximately 200,000 metric tonnes of raw oats in 2016 due to the staggering growth in consumption.

https://themalaysianreserve.com/2018/02/...go-abroad/

[port]

May2016- Growing demand from Asia puts oats in the spotlight this season

https://www.weeklytimesnow.com.au/agribu...52468f9165

PENANG-based Federal Oats Mills Sdn Bhd (FOM), which operates the only oat milling plant in South East Asia, achieved another milestone when the company had its ground breaking ceremony for its new production plant on Aug 29 2017.

Located at the Halal Food Zone, North Penang Science Park, the new plant will have a combined plot size of 6.7529 acres (294,156 sq ft) which is the equivalent of 4½ football fields. The plant itself occupies over 232,000 sq ft on a total built-up area of over 251,000 sq ft.

According to information given by FOM, the new production plant will be able to produce up to 26 tons of oats per hour compared with its current production capability of 6 tons per hour. This new plant will also be equipped with R&D facility on new oats-based cereal and food products.

The company which is one of the most prominent and established companies in Malaysia was founded in 1965 and is the producer of homegrown oats brand Captain Oats with its existing plant in Mak Mandin. Phase 1 of its new RM120 million plant will be completed in 2019 while the entire expansion is to complete by 2025.

[¯|_(ツ)_/¯]

Profit Guidance
expected to incur a loss in part due to the increased provisions of fair value loss on the short-term quoted securities of $398,000 (2019 : $195,000) under the adverse stock market conditions. In spite of Covid-19 pandemic and Movement Control Order (MCO), our Malaysian operations remained profitable. 
https://links.sgx.com/FileOpen/KGL%20Pro...eID=630110

Stay home and stay healthy, everyone.

[cyclone]

Profit Guidance

Khong Guan Limited announced that the Group is expected to report a net loss for the financial year ended 31 July 2021 ("FY2021"). Based on the preliminary review of its draft unaudited consolidated financial results for FY2021, the loss is attributed to a decrease in the share of results of its associate in Malaysia. The Company is still in the process of finalizing its Financial Results for FY2021 and will provide further details of the Group’s performance when it releases the Financial Results for FY2021 by 29 November 20211.

Source : https://links.sgx.com/1.0.0/corporate-an...idance.pdf