MSM Malaysia Holdings Bhd is a sugar producer. The Company is engaged in refining, sales and marketing of refined sugar. It is also engaged in palm oil & rubber plantation. It has strong economic moats which is efficient scale due to niche market of palm oil and rubber that is hard to enter and cost advantage due to monopoly.
This stock can consider for buy bacause it has a quite stable Earnings Per Share (EPS), has very positive Operating Cash Flow, has Return of Equity (ROE) close to 15 and has no Debt for past 5 years since listed in stock exchange.
Besides, the Price/Earning (PE) is 11.7 (<12) and Dividend Yield % is 5.4%.
This stock would only suffer from regulatory risk due to license is needed for palm oil and rubber plantation.
The current price for this stock is RM4.80. From stock valuation, the
biz confidence level is 8.5 out 10, it should buy as dividend stock when its current price drop lower than RM4.20 and has
positive margin of safety (MOS).
This stock is not suitable to buy now as asset play
because the current price (RM4.80) is much higher than entry price (RM2.13) and has negative margin
of safety (MOS) of -125.56%. It can buy as asset play stock when the stock price falls below RM2.15 and has positive MOS.
This stock is not suitable to buy as growth stock
because it has negative EPS% growth of -3.82.
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