Fima Corporation

Fima Corporation

Postby winston » Tue Dec 02, 2014 1:26 pm

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LITTLE-known Fima Corporation offers investors a high yielding investment with stable income, thanks to its unusual core business — a concession to produce government security and confidential documents, and bank notes.


In FY March 2014, about 69% of its revenue and 63% of pre-tax profit came from the production of government security documents such as bank notes, confidential documents and passport materials. The balance is mostly from palm oil, where it has 50,000-acre plantation in Indonesia.

The security documents income comes largely from two subsidiaries, Percetakan Keselamatan Nasional Sdn Bhd and Security Printers Sdn Bhd. The former was privatised to Fima in 1990 and was awarded the government concession for the printing of government security documents.

Fima also has a joint-venture banknote printing company, Giesecke & Devrient Malaysia Sdn Bhd which operates the country’s only banknote printing plant.

In FY 2014, the government security production division saw revenue rise 19.6% to RM241.6 million while pre-tax profit increased 19.3% to RM63.4 million.

Over the last five years, Fima’s revenue steadily increased from RM280.1 million in FY2010 to RM348.4 million in FY2014. Its pre-tax profit was relatively stable between RM88.6 million and RM111.6 million with high net margins of 19% to 26%.

Fima offers an attractive dividend yield of 4.4%. Its payout ratio has doubled from 20.3% in FY2010 to 41.6% in FY2014.

As at 30 Sept 2014, it had net cash of RM182.2 million, or 75 sen per share. Its shares trade at an attractive 12-month trailing P/E ratio of just 9.73 times and 1.29 times book

Source: The Edge
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Re: Fima Corporation

Postby winston » Sun May 31, 2015 7:33 pm

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Fima Corp slips after hitting all-time high

18 March 2014

KUALA LUMPUR: Cash-rich Fima Corporation's share price slipped late Tuesday morning on mild profit taking after hitting an all-time high of RM8.40 the previous day.

At 11.21am, it was down 10 sen to RM8.30. Turnover was 2,000 shares.

The FBM KLCI rose 2.06 points to 1,817.22. Turnover was 417.62 million shares valued at RM395.67mil. There were 306 gainers, 242 losers and 287 counters unchanged.

Fima Corp, which is 60.99% owned by Fima Metal Box Holdings, has about RM191.11mil cash and cash equivalents at Dec 31, 2013.

It reported net profit of RM24.12mil in the third quarter ended Dec 31, 2013, up 69% from RM14.15mil a year ago. For the nine-months, its earnings rose 15.6% to RM57.22mil from RM49.48mil.

Its net asset per share was RM5.91. At RM8.30, it is trading at 1.4 times price-to-book value and a price-to-earnings of 10.13 times.

Fima Corp is involved in the printing of security and confidential documents, plantations and property management.

Source: The Star
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Re: Fima Corporation

Postby winston » Sun May 31, 2015 7:40 pm

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Kumpulan Fima Bhd (May 27, RM1.98) Maintain neutral with unchanged target price of RM2.26.

Kumpulan Fima (KFima) registered revenue of RM545 million, for the financial year ended March (FY15) which met 97% of our forecast.

Top line increased by 8% year-on-year (y-o-y) while all segments recorded encouraging growth.

Manufacturing revenue recorded a jump of 10.3% y-o-y to RM266.5 million for FY15, although the FY15 profit before tax (PBT) level was lower by 20.6% y-o-y at RM50.5 million. This is mainly due to its product mix of high and low margins. We expect the division to remain stable with relatively flat growth for the near term, while KFima continues with its current contracts.

Plantations saw a positive 4.7% y-o-y revenue growth for FY15 to RM115.7 million, attributed to both higher volume and selling price of crude palm oil (CPO). We are expecting the division to grow further, with contributions coming in from its greenfield estate in Miri, Sarawak, where the first harvest is targeted to be in mid-July this year. Bulking recorded higher revenue of 4.7% y-o-y to RM66.8 million. On PBT level, bulking saw a 2.1% increase, also contributed by sales mix and higher contributions from edible oil and chemical oil sub-segments. We expect this division to remain stable in the near term, albeit slow, as the division provides highly customised and specialised services, while depending mainly on securing short-term contracts and long-term deals.

Its food divisions FY15 revenue increased by 8.9% y-o-y, indicating the strong potential growth the division holds. Going forward, we expect the food division to contribute a higher percentage to the groups total sales, as the division fine-tunes its restructuring of focus in growing its tuna sales as opposed to its initial intention of mackerel. At the moment, mackerel contributes 70% to the division, and the group intends to reduce it to 30% in the medium term, replacing mackerel with tuna.

Source: Public Investment Bank Bhd

http://www.theedgemarkets.com/my/articl ... d-division
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Re: Fima Corporation

Postby winston » Sun May 31, 2015 8:01 pm

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One rich generous printing and plantation son

Jan 14, 2014

Last year RHB Bank created history by being the first bank in Malaysia to be featured in a commemorative stamp collection in conjunction with its 100th anniversary celebrations. The stamp collection captured four historic moments in the bank's history. The collection sets yet another milestone by being the first stamp to be printed in a diamond shape, a reflection of the Group's iconic logo.

A total of 1.2 million stamps, each valued at 60 sen, were printed while the first-day cover and folder were each priced at 50 sen and RM5.50 respectively. The items went on sale at Pos Malaysia offices nationwide from Nov 23, 2013.

So who printed the stamps for Pos all these while? Any Tom, d**k and Harry company?

No. The company is called Fima Corporation Berhad (Fimacor), otherwise known as the cash-rich son of its also cash-rich mother Kumpulan Fima Berhad (Kfima). It is believed that Fimacor is also printing stamps for a dozen other countries. True, both mother and son are loaded with cash in their kitty that are getting more and more heavy every year.

So much so has been said about these two companies that what I want to say will sound like recycled comments only. So perhaps the writer will share his personal's "association" with Fimacor and how he became a shareholder as well.

Fima Corporation Berhad (Fimacor)

Initially, what I liked about Fimacor was its consistent and secure printing business and to a smaller extend, business property management, some cash in its kitty and its average dividend payout.

In 2007, when Fimacor decided to venture into plantation business in Indonesia, I was pessimistic about this new venture. You see, I am the type of investor who like to invest in company that knows their main business best and do not simply diversify into another different business. I was worried that this new plantation business would not do well and would be a drag to its good balance sheet, thus affecting the regular good dividends.

As a matter of fact, if I am not mistaken, Fimacor took some loan for the purchase of the plantation business.

Lady luck must be on Fimacor's side as crude palm oil's price was on a steady uptrend after the purchase. Consequently, when Fimacor's quarterly profits were announced, the profits was more and more as the result of the good contribution from the plantation business. So much so that until today, Fimacor is sitting on a huge cash hoard of RM225 million according to its latest 2nd Qtr 2014 result's announcement.

Even today, plantation remain an extra good revenue and profit for Fimacor even though CPO is trading just above RM2,000.00. Managing Director Roslan Hamir said as long as CPO price stays above RM2,000.00 per tonne, it is still ringing in profit for Fimacor. At the time of posting, CPO's price has been on an uptrend again.

Today, the plantation division contributed about 30% to the group revenue.

Fimacor is also on the lookout for acquisition opportunities to grow. Fimacor announced that the Proposed Acquisition by Cendana Laksana Sdn Bhd, of 2 parcels of agricultural leasehold lands held under HSD 398, Lot PT 757 P, Mukim Tebak, Daerah Kemaman, Negeri Terengganu measuring approximately 1,000 acres & PN 7602, Lot 2925 (Formerly HSD 2406, PT 1037P), Mukim Tebak, Daerah Kemaman, Negeri Terengganu measuring approximately 940.73 acres was completed on Jan 6, 2014. Fimacor also plans to buy plantation land in Papua New Guinea.

Excellent dividends paymaster

The last few years has been exceptionally good for Fimacor. Its last five years' average eps is 81 sen which is considered very high for a company with a share base of only 82,426,810.

Predictably, on Nov 26, 2013, Fimacor reported an eps of 23.78 sen for its 2nd Qtr September, bringing its half year's total eps to 41 sen.

More fantastic for its shareholders is the continuous increasing of dividends payout from the last five years. Gross dividend for 2009 was 17 sen and increased to a high of 38.5 sen for 2013. At the current price of around RM6.30, a 38.5 sen dividend indicates a dividend yield of 6.1%. Fimacor recently paid a single-tier interim dividend of 15% payable for the year ending Mar 2014 on Dec 27, 2013.

At its last Annual General Meeting, Managing Director Roslan Hamir said that Fimacor has always maintained dividend at the same level compared with previous financial year. Isn't this good news for dividend lovers? People especially like me!


Huge cash hoard of RM225 Million as at 2nd Qtr September 2013 for financial year ending March 2014.

The current price of Fimacor is RM6.30 (at the time of writing). It is backed by its huge cash hoard that amounts to a cash per share of RM2.80. Stripping out this cash per share of RM2.80 and investor would only be paying about RM3.50 for each 1,000 Fimacor share that would imply a Price Earning Ratio of less than 4.5 only!

Supported by its steady consistent printing business, property management and its plantation business, its earnings are quite a predictable one. If CPO price is on an uptrend, you can bet Fimacor will report an even higher profit.

CPO price has been trading higher and higher during the last few months and looked set to maintain the pace for the coming months. This should brings more smiles to the shareholders of Fimacor and Kumpulan Fima (Kfima) eventually.

From time to time since several years ago, there were some reports about the merger between its parent company Kfima and Fimacor. Each time such news surfaced, there would be some spike up in the shares prices of both companies.

I am personally at a loss to explain why the merger does not take place or why Kfima does not take a privatisation exercise on Fimacor. If a privatisation exercise is to happens, how would the minorities shareholders of Fimacor react? There must be a big massive dividend payout to appease the minorities shareholders. Also take note that as Kfima holds a 60% stake in Fimacor, they would also benefit from this dividend payout.

Time will tell whether a merger between these cash-rich mother and son companies perhaps involving some shares swap would take place or when a privatisation exercise is announced. Whatever it is, it must result in a win-win situation for both companies.

I was "lucky" enough to be the one of early birds' investor of Fimacor when they were just focussing on their printing business and property management.

I bought 2,000 shares of Fimacor at RM1.42 on Oct 21, 2004 and again another 2,000 shares of Fimacor also at RM1.42 on Oct 26, 2004. To date, the writer has received dividends totalling around RM8,000.00 plus which is more than his original capital investments of RM5,722.36 in Fimacor. Which means the present 4,000 shares of Fimacor are effectively FREE!

What a good son Fimacor has turned out to be for Kassim. Dishing out regular good dividends all those years and many more years to come. Can we call it another "next mini Public Bank company"? Again, only time will tell.

The writer intends to keep this generous son with a big heart for as long as possible.

You know why, right?

Source: http://kassimsthoughts.blogspot.com/201 ... chive.html
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Re: Fima Corporation

Postby winston » Thu Aug 27, 2015 9:35 pm

vested

2015 Results
Revenue: +8.5%
Profit Before Tax (PBT): -13%

Security Documents (71% of Group Revenue)
Revenue: +10%
PBT: -20%

Plantation
Revenue: +4%
PBT: +18%

Final Dividend 0.075
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Re: Fima Corporation

Postby winston » Mon Sep 05, 2016 9:01 pm

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August 26, 2016

OTHERS HAK GUNA USAHA - PT NUNUKAN JAYA LESTARI

By way of a letter dated 25 July 2016 to the Company’s Indonesian subsidiary, PT Nunukan Jaya Lestari (“PTNJL”) (which was received by PTNJL on 23 August 2016), the Menteri Agraria dan Tata Ruang/Kepala Badan Pertanahan Nasional (“Ministerial Order”) issued an order to revoke PTNJL’s land title Hak Guna Usaha No. 01/Nunukan Barat (“HGU”) with immediate effect.

The Ministerial Order was on the basis that the HGU was improperly issued due to administrative irregularities performed by certain officers of the Badan Pertanahan Nasional Provinsi Kalimatan Timur at the time of the issuance of the HGU in 2003; resulting in parts of the area within the HGU to overlap with forestry areas.

PTNJL is a private limited liability company incorporated on 31 May 2001 under the laws of Indonesia whose principal activity is the cultivation of oil palm.

The Company’s wholly owned subsidiary, FCB Plantation Holdings Sdn Bhd holds an 80% equity interest in PTNJL since April 2007.

http://www.bursamalaysia.com/market/lis ... ts/5188753
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Re: Fima Corporation

Postby winston » Mon Mar 20, 2017 7:23 pm

vested

FY 2016

Revenue: Flat
EPS: +19%
NTA: 2.41

http://www.bursamalaysia.com/market/lis ... ts/5343329
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