Good report

Day 70 of Fundamental Daily, YAPSS will be covering BP Plastic Holding Berhad's fundamental via a short animated video. I hope it helps and please enjoy the video, see ya! #YAPSS #FundamentalDaily #BPPlasticHoldingBerhad

Click the on the link to find out more: https://youtu.be/ukTC0Vxb_Bw

YAPSS Quick Summary and Free 10 Years Financial Data of BP Plastics Holdings Berhad:
https://www.yapss.com/forum/klse-forum/bp-plastics-holdings-berhad-bpplas-5100

https://jawplace.com/quarterly-report-review-1-bp-plastic-berhad/

Good read and view

BPPlas is good for low risk investors who seek stable/consistent dividen payout. Cash rich company.

My view on BPPlas as link below:

http://mybusinesschool.blogspot.com/

Stock Review BPPLAS

• Convid 19 had increased the world logistic demand hence the demand of PE films and Bag had increased.

• BPPLAS provides PE films and  bag for food and beverage which is essential business hence its manufacturing plant is able to operate during Movement Control Order with compliance of SOP set by the Government of Malaysia.

• Since 71.14 % of BPPLAS revenue are from export, the increasing of container cost over the world after convid 19 might affect the profit of BPPLAS.

• BPPLAS had nett currency exposure of US dollar of - RM 27,538,255, strengthening of USD after March 2021 would decrease the profit of BPPLAS.

• Investment on the new 9th Cash Stretch Film Machine expected to be completed by the end of 2021.

• One of the manufacturing plant had close down for 10 day on March 2021 due to Convid 19 cases. This might affect the production and revenue of BPPLAS.

• BPPLAS had low growth in revenue over the 5 year period however its net profit is growing at 10.66 % which indicated the management had done well in cost management.

• Despite pandemic BPPLAS manage to control its trade receivable past due at 19.85% in 2020.

• BPPLAS has no debt and is cash rich. 67.60 % of the 2020 cash balance is in a short term investment fund earning interest of 2.52 %.

• BPPLAS had increase its trade payable from RM 34,163,325 in 2019 to RM 68,582,231 in 2020 mainly due to increase of their purchase in raw material in 2020. BPPLAS manages to purchase more raw material in 2020 when the raw material price is low. There is less concern on the increase of trade payable because BPPLAS had RM 84,0466,187 in cash and short investment which was able to pay their supplier.

• BPPLAS is trading at 12% discount from TGUAN P/E and 49 % discount from SLP P/E and has a dividend yield higher than 10 years Malaysia Government Bond over the past 5 years.

• BPPLAS current price is at upward trend.

Industry Comparison (Packaging)

• BPPLAS has 46.73 higher revenue in 2020 compare to peer of similar size SLP
• BPPLAS had loweest P/E among the companies in comparision (BPPLAS, SLP and TGUAN)
• BPPLAS had high dividend yeild and reasonable dividend payout ratio

From a ROE perspective, BPPLAS has delivered an average of 11% over the past 13 years. The ROE went up to 21 % in 2021 but came down to 12% in 2022. I would think that it would hover around its past 13 years average in the future. So if there is no change in returns, why would the market price change? Don't get me wrong. They have achieved better performance than the other print packaging company - New Toyo - I have been tracking. But my interest in New Toyo was because I saw its annoucement about 6 to 8 years ago about its plan to redevelop the Tien Wah Press former factor site in Section 13, PJ. I grew up in that area and I have seen how some of the former factory sites have been redeveloped.