now high? cam buy?

Day 27 of Fundamental Daily, YAPSS will be covering Ajinomoto (Malaysia) Berhad's fundamental via a short animated video. I hope it helps and please enjoy the video, see ya! #FundamentalDaily #AjinomotoMalaysiaBerhad

Click the on the link to find out more: https://www.youtube.com/watch?v=s05P8pzxBxc

Read about our analysis on Ajinomoto (Malaysia) Bhd here:

https://www.mykayaplus.com/ajinomoto-malaysia-berhad/

This is a good example of the disconnet between short term share price and long term business performance. Over the past few years its gross profit margins have been declining leading to a decline in the ROE below 10%. So does the share price mean that the market knows that the company has improved its performance? Or is this a short term price up-trend that cannot be sustained?

Ajinomoto – a new hope from its relocation

Ajinomoto bottom line over the past 12 years was boosted by 2 land gains that resulted in about the same contribution to the past 12 years' earnings as the operating profits. The land gains are one-off items and moving forward we have to rely just on the operations.

Ajinomoto is a mature company with revenue growing at 6.1 % CAGR over the past 12 years. So you may think that there is not much hope for better results.

But the company relocated to a new plant in 2022 and its operating results since then provide a good picture of its future. It is also financially sound. On such a basis I found that there is more than a 30% margin of safety making it an investment opportunity.

For more insights refer to Is Ajinomoto an investment opportunity?