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Overview
Financial Highlight
HeadlinesBusiness Background InNature Berhad is an investment holding company. The company, through its subsidiaries, is principally involved in the retailing and distribution of The Body Shop products in Malaysia, Vietnam and Cambodia. The company has been operating The Body Shop franchise business for more than 35 years.
  hw0706 stock which is Inflation & Deflation ....with the tourism openning, will benefit the share... 19/01/2023 3:24 PM airfan99 The organic earnings growth inherent in pricing power makes businesses in the Branded Retail sector unique - and provides a strong competitive moat. This makes Innature paradoxically a high quality stock being offered at cigar butt prices - a wonderful business at a wonderful price. 26/01/2023 2:36 PM hw0706 Hence, this thesis boils down to simply waiting for valuations to revert to the mean (i.e. 60% upside at 25x FY19 when the next retail upcycle rolls along, while getting paid an above-average bond yield to wait. Why do I make reference to ‘bond yield’? Because their cash flows are highly robust and the company is in a net cash position, making their dividends bond-like. For the aforementioned low-risk and earnings visibility reasons, Branded Retail stocks tend to command relatively high valuations for the Retail sector of about 25-30x. For reference, the local Starbucks (Berjaya Food: 5196.KL) and 7-11 (SEM: 5250.KL) listed entities are currently (and have consistently) trading at 30x and 25x pre-covid earnings respectively, without any significant growth catalysts in sight. 27/01/2023 8:26 PM hw0706 Innature’s business motto is elegant in its simplicity - Business As A Force For Good. Innature has been pursuing ESG right from the start, long before it was cool. Innature is one of the rare small-cap Malaysian listed companies which actually go out of their way to show that they care about Sustainability. ESG is the bridge between corporations and governments - where the societal role of corporations is to optimize scarce resources, while the societal role of government is to provide for indispensable social needs even if they may not necessarily be sustainable. ESG tries to pull companies closer to the middle by enabling the sustainable provision of social needs, resurrecting the premise of the social contract - where the immense resources of the private sector are lent towards performing some of the heavy lifting in society. It also harkens back to the ancient days of old, before the corporations’ sole duty was purely in the service of maximizing shareholder returns. The investment thesis is simply that the current share price (RM 0.64) is trading at a discount to the value of the low-risk Malaysian operations alone - there are no valuation gymnastics to be performed here. Cash flow risk is lower than Gandhi’s ego, and being paid a normalized dividend yield of 4.5% while waiting for valuations to revert to mean at least offsets inflation. I am willing to stake my reputation on this company not going bankrupt. 27/01/2023 8:30 PM SmallSexyPig what logic is it that they will privatise, they went public like 2 years ago 14/02/2023 1:33 PM khpwwl those who bought last friday, today t2 should be got fs...where are the tickets? 15/02/2023 3:54 PM khpwwl due to market floating not more that 20%, prudential starts to dispose shares? 20/02/2023 3:37 PM chkhooju Eventually the major shareholder has to take it private. She has no other option. 23/02/2023 11:55 AM SmallSexyPig Cannot just issue more shares? I mean I am no expert but if their share spread for public is below threshold why isn't it possible to just issue bonus shares for example? 23/02/2023 12:27 PM kayce Issue Bonus Shares would not help the % of dilution. Private placement might help. 23/02/2023 2:06 PM chkhooju Kayce is right. Bonus issue is back to square one. Cannot solve the float problem. Only private placement can do the trick, but at the disadvantages of the minor shareholders. Retailers will be getting a raw deal. 23/02/2023 2:34 PM  speakup just listed recently want privatise already? what u smoking man? if u want privatisation candidates, here's the list: FACBIND, ICAP, INSAS, KSENG, MPHBCAP. all cash rich 23/02/2023 4:56 PM chkhooju @speakup, you have to understand that the major shareholder is holding close to 75% and Prudential has slightly more than 5%, leaving its float at less than 20%. Bursa has given it until 26 March to rectify the situation. 23/02/2023 5:50 PM hw0706 The 2022 result already is over the 2020 result which is at pre covid result. 24/02/2023 5:11 AM speakup Cash per share is only 5sen/share, which represents 8% of the current share price. There is no reason for major shareholder to take private now. Maybe later in future, but not now. All the other privatization candidates I mentioned before, have cash per share at least 50%. 24/02/2023 7:34 AM speakup take KSeng for example: Net cash rm987mil is rm2.73/share, representing 77% of the share price! Icap for example: Net cash rm140mil is rm1/share, representing 50% of the share price! so easy for major shareholders to take private, as they can do a SCR 24/02/2023 7:54 AM chkhooju But....... still no way to acquire the required threshold of the 25% float. 24/02/2023 8:56 AM speakup There is no incentive for innature major shareholder to take private considering cash/share only 5¢ 24/02/2023 9:17 AM ossanluv All in all the qtr result is not bad all things considered. Div for whole 2022 at 5% already. Short term traders of course as always more depended on timing vs the performance of the company. Is just 2 different poisons / beasts of your trading choice. 24/02/2023 11:04 AM SmallSexyPig interesting that Malaysia's 2 biggest banks have buy calls on this relatively small stock yet on good dividend announcement and fair price people sell. I will never truly understand the mind of traders on bursa 24/02/2023 4:54 PM ossanluv Intraday or swing traders only interested in an ongoing 'cheong' counter. Now Innature is not in a high gear yet. Only institutions and serious long term investor are trying to nibble a bit here and there collecting slowly now. 28/02/2023 7:45 AM chkhooju Oh, no. You are very wrong. It can be resolved easily unless one party, sell down. It's float is now at less than 29%, very below the 25% threshold. 28/02/2023 3:13 PM chkhooju Sir, typing errors. It should read, cannot be returned easily. Float now below 29%> 28/02/2023 3:16 PM kayce Referring to the Date line, Banks buy calls, Dividend announcement etc.... and No heavy selling ! 28/02/2023 3:34 PM ossanluv @chkhooju, I think your understanding of the free float issue is wrong. The public stock spread issue for Innature that bursa gave till 29 March to resolve is TO RAISE to the MINIMUM of 25% spread per bursa requirement. Currently the spread is around 20%+-. So, I don't understand your statement of ........'Float now below 29%>'...............28%, 27%, or 26% are all below 29%, but meet the bursa 25% minimum requirement....pls do tell if I misunderstood your understanding 01/03/2023 5:35 AM ossanluv ohhh btw, just to help you all understand the big picture ........Datuk Simon Foong basically own around 75%, Prudential around 5% .......of course don't enough to meet the bursa 25% requirement......currently Innature is seeking bursa why Prudential's holding not considered under public spread (private investment vs under fund investment - hair splitting????)....... Then again, you can't just ignore the elephant in the room right - the 75%+- holding......... 01/03/2023 5:57 AM chkhooju clarified my typing errors, it should read below 20%> Its float is slightly more than 19%> only. Neither the Foongs or Prudential will sell it down to materialize the stipulated float. 01/03/2023 7:28 AM ossanluv @khpwwl ????......if goreng2 how to hold tight tight............if hold tight tight how to sell, buy, sell, buy = goreng2.......konfuse.... 08/03/2023 3:04 PM khpwwl seen like they give dividend to cover those shareholders who bought 0.68, breakeven the cost and sell its back to them. is this one of the reason that they are pressing the price? 14/03/2023 10:58 AM  | |
