Harison simple analysis

Harison is a company with a diverse business portfolio. Harison is active in multiple business areas. The company's business includes trading & distribution, retail, and shipping. The trading & distribution segment is involved in the marketing, sale and distribution of FMCG, construction materials and engineering products, and industrial and agrochemical products. The Retailing division includes retailing its Famous Amos Cookies in Singapore and mainly wholesaling Komonoya products in Singapore. The Shipping department includes shipping agent commissions, insurance agent commissions, travel agent commissions, etc.

Most of Harison's business is located on the East Malaysia Peninsula. Currently, Harrison has more than 400 principals and distributes approximately 13,000 product projects to more than 15,000 accounts across Malaysia. The Group operates 27 branches and 47 warehouses across Malaysia (13 in the peninsula, 9 in Sabah, and 5 in Sarawak), supported by over 1,700 employees. In Singapore, its subsidiary The Famous Amos Chocolate Chip Cookie Singapore Pte. Ltd. Wholesale and retail Famous Amos Cookies and Watts Harrisons Sdn. Komonoya brand products from Bhd wholesale.

Harrison's revenue and net profit for the quarter reached 503.7 mil and 17.5 mil, respectively. Harrison is also a company with a low profit margin of only about 3% on average. Yoy's revenue for the quarter fell by RM10.9 mile mainly due to an increase in management expenses of MYR 9.8 million, an increase of 0.25% in OPR, and an increase of MYR 368,000 in interest expenses. Also, in the shipping agency business in Sabah, commission revenue decreased from MYR 4.1 million in the previous corresponding quarter to MYR 3 million in the current quarter.

Commodities are expected to rise in 2024, and Harrison needs to consider passing the costs on to consumers. Management expects profits to grow in 2024 at the same time as the Malaysian economy. The impact of net margins and the increase in operating costs will be a challenge Harrison needs to face. Currently, Harrison's PE is 9.45, and dividend yield is 5.48%.