$SUNZEN-WC (0148WC.MY)$ The bird’s nest division has posted ...
The bird’s nest division has posted its first loss. Although the bird’s nest business is traditionally seasonal, this still requires caution. Have the Chinese people switched to eating durian instead of bird’s nest starting in May? Or have they not finished their bird’s nests from the New Year yet? Domestic sales are also not good and Sunzen was forced to write off inventory. Fortunately, such losses are usually one-time off。
The profits in the human health segment primarily come from Megami, and this business is promising. The RM 1.7 million loss in the animal segment is not expected to recur. The loan business is getting stronger.
The revaluation of the subsidiary’s land and property has resulted in an RM 8 million appreciation, likely from the animal segment’s property. If this property is sold in the future, the gains in the P&L could be significant!
The acquisitions of Yanming and Ecolite have been completed, meaning that the future profits of the bird’s nest segment are guaranteed. Even if the business incurs losses, there will be corresponding compensation. The issuance of new shares will not increase selling pressure, as these shares cannot be sold before 2027 . Over the 2025-2026 period, with guaranteed minimum profits (RM 13 million) from the bird’s nest segment, profits from the loan division, and the closure of the animal segment, it is very likely to achieve a minimum PAT (Profit After Tax) of RM 4 million each quarter.
Of the RM 2 million owed by FIHSB, RM 1.4 million has already been repaid. so there is no risk of bad debt.
The only question after reading the report is～ If the bird’s nest export business is not growing, why apply for an 18-ton export quota? Did 程志彬先生 from Finsource and Sunzen’s CEO exaggerate the business prospects initially? Should the two gentlemen come forward and explain?
#纯粹吹水#以上咨询可能有误*谢谢指点。
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