Some basic info on the company from share.com.my/corp/m/Magni-Tech_Industries.htm

"Magni-Tech Industries Berhad was incorporated in Malaysia on 12 March 1997 and listed on the Second Board of Bursa Malaysia Securities Berhad (BMSB) on 18 April 2000. It was subsequently transferred to the Main Board of BMSB on 8 April 2003. Tan Sri Dato’ Tan Kok Ping is the Executive Chairman and Mr. Tan Poay Seng, the Managing Director.

The Group was initially involved in packaging business, before diversifying into apparel business. On 1 November 2006, Magni completed the acquisition of the entire equity stake in South Island Garment Sdn Bhd, an established apparel manufacturer. The diversification into apparel business has reduced the Group’s reliance on the packaging business and enhanced its earnings.

Subsidiaries of Magni-Tech Industries Berhad:-

(1) South Island Garment Sdn Bhd (100%-Owned)
Business : Manufacturing and sale of garments

(2) South Island Plastics Sdn Bhd (100%-Owned)
Business : Manufacturing and distribution of flexible plastic packaging materials for industrial and commercial uses

(3) Inter-Pacific Packaging Sdn Bhd (100%-Owned)
Business : Manufacturing and distribution of corrugated fibreboards, cartons and boxes for industrial and commercial uses

(4) South Island Packaging (Penang) Sdn Bhd (99.64%-Owned)
Business : Manufacturing and distribution of inner packaging boxes for industrial and commercial uses.

Review of performance 30 April 2012

The Group is primarily engaged in the manufacturing of garments for export (accounted for about 80% of the Group's revenue for the financial year) and a wide range of flexible plastic packaging, corrugated packaging products and display boxes. The key factors that affect the performance of garment business include mainly the labour costs, other operating costs foreign currency fluctuations and demand for the garments. For the packaging segment, the key factors that affect its performance include mainly the raw material costs (Kraft liner, test liner, medium papers, paper boards, polyethylene resins and etc.), operating costs and demand for the packaging products.

Comparatives Results with the Preceding Quarter

Revenue for the current quarter increased by 22.0% compared to the preceding year corresponding quarter. On segmental basis, revenue for the current quarter for garment and packaging segments increased by 27.6% and 7.2% respectively mainly due to higher sale orders received. Profit before taxation (PBT) for the current quarter increased by 249.2% mainly due to higher revenue and air freight claims received from certain suppliers amounting to RM3.611 million."


Revenue and earnings have been on a steady uptrend the past few years. Seems like a good growth counter, with decent dividend too.

But do you see any potential drawbacks in investing into this counter?

From my newb and most likely flawed point of views, the concerns are :-

(a) extremely low liquidity;

(b) very tightly held shares (top shareholders accounting for more than 70-80%); and

© it is not mentioned in its annual reports (at least the 2011 and 2012 ones) that Tan Kok Ping and Tan Poay Seng (2 of the major shareholders and directors) are father-and-son. I only discovered the relationship after doing some 'digging'. I would have thought such a relationship should be clearly stated from the outset. There are a few other Tans on the board and shareholder lists but I didnt bother to 'dig' further to see whether they are related.

Another concern I have is that the Directors' remuneration seems too high.

Profits (group) for FY 2010, 2011 & 2012 were RM16,495m, RM17.258m & RM30.638m respectively. The Directors' remuneration for those years were RM4.83m, RM5.787m & RM8.641m respectively.

Just for comparison (probably not entirely fair but just for some perspective) :-

- PChem for year 2011 the Directors' remuneration (including CEO's pay) was only RM1.788m (profits of RM2b++)

- WTK for 2010 and 2011 the Directors' remuneration was RM3.391m and RM3.239m respectively (profits of RM68.639m and RM31.046m respectively).

liquidity so slow... there is a risk of major share holder selling down and later privatise.

I'll share some info, boss is Penang Chinese Chamber of Commerce Chairman. And VT is a major shareholder.

This post has been edited by skiddtrader: Sep 14 2012, 04:28 PM

Did a quick research on this counter...

Pros:
- low PE (6.66x as of today)
- decent DY (4.4% as of today)
- no long term or short term debt
- ROE above 15 in the last few year

Cons:
- low profit margin (< 10%)
- inventory level increased substantially in FY16
- products (garments & packaging) susceptible to economic slowdown
- low trading volume (average 80k in the last 4 weeks)


Pink Spider
My tipsy
Please share your views

This will be my weekend homework, thanks Pasir!

i thought this counter had a strong rally last year ad? like 2 bucks to 6 bucks kind of thing.

Brief comment before going into the financials

OEM for Nike...economic moat? I'd say takda. Competition from Thailand, Vietnam and other emerging economies. Their business can easily be taken away.

I'd skip this one though at a glance the financials look okay.

the margin very good though!

That's why I said, the above is only my qualitative view. Quantitative...nanti

haha okay.... waiting waiting.......

looking GOOD THESE FEW DAYS

From bursa


is this a good time to buy this ???

Buy a stock based on its fundamentals, not based on news. Anyway, the price has already jumped up prior to the release of this news and when the news was released, so buying now makes no difference. Might as well just wait after the ex-date to buy.

Edit: The price would've been adjusted downwards to reflect to this action after ex-date, so you are not getting any extra value.

This post has been edited by Jordy: Aug 9 2019, 05:45 PM

Very strong and steady FCF. Only 1-2% of company in Bursa has the same quality.

That is true, hence the reason I am still holding on to the stock.
The only worry is its over-reliance on a single major client.
To propel the company further, the management has to diversify the company's earning base.

what is the meaning of the above announcement??

Senior company officers need to announce if they want to buy/sell company shares during closed period, which is period before results announced.

UP UP UP!!

Magni has continued it's upward trajectory today to hit another high of 6.65. Looks like it is en route to surpass 7.00. Hope that it could break its previous high of 7.50 before the split/bonus issue

Can someone with more nous enlighten me on these seemingly difference in their financial reports?


This is the recent Quarterly rpt on consolidated results for the financial period ended 31 Jan 2020

https://www.bursamalaysia.com/market_inform...?ann_id=3032179

It shows at 31 Jan 2019, the cumulative dividend declared as 6.75 sen.



THis is the Quarterly rpt on consolidated results for the financial period ended 31 Jan 2019

https://www.bursamalaysia.com/market_inform...?ann_id=2937483

It shows the cumulative dividend at 31 Jan 2019 as 18 sens.

Why is it different?

Counter that displays the meaning of the quality.