- There is no significant technical signal for reference.
- MSM shares price has been fall without resistance in the past 2 years.
- Reduce in shares price due to changing of the business fundamental.
- Don't try to hold a falling knife!! KIV.
- MSM back to positive earning in Y2018 which lead significant jump in earnings growth, 210%
- Latest net cash company still negative value, -RM56M and ROE still a single digit.
- It is hard to judge MSM business performance at this moment.
b) Market Prospect Ratio
- MSM shares prices movement has been reflected a significant reduction in EPS.
- No dividend payout in the last 2 years due to negative EPS in Y2017 and net cash company in Y2018 respectively.
c) Profitability Ratios
- MSM revenue in an upward trend from Y2014 - Y2017 but there is a drop approximate 16.59% in Y2018. (Y2017: RM2,656M; Y2018; RM2,215M)
- MSM able to increase gross margin by 3.43% with better cost management,
- Markets expect MSM able to generate higher revenue in the future after completion of MSM Johor which has increased their capacity by 1M tonnes per years.
d) Efficiency Ratio
- MSM efficiency ratio doesn't have any significant change in the past 5 years due to sugar refineries is control business segment.
- Thus, MSM enjoys monopoly business modal.
e) Liquidity & Solvency Ratio
- Higher investment activities and lower revenue cum greater cost of operations, it leads deteriorate in liquidity & solvency ration performance.
- With the completion of MSM Johor, it will improve MSM performance in the long run and MSM group become one of the largest standalone sure refiners in Asia.