PETALING JAYA: MIDF Research remains sanguine on MSM Malaysia Holdings Bhd
’s long term business prospects, given that all rectification works in the sugar producer’s Johor refinery have been completed.
“The refinery can now operate at full throttle, increasing its capacity utilisation factor (UF) from 15%-30% to 40%-50%, thereby paving the way to better economies of scale in refining cost structures ahead,” MIDF Research said.
As it is, MSM made a significant turnaround with net profit of RM42.9mil in the fourth quarter ended Dec 31, 2023, against a net loss of RM44.2mil a year ago.
The turnaround can be attributed to its strategic focus on enhancing average selling price (ASP), cost reduction measures, including hedging optimisation, and the expansion of sales volume through the diversification of distribution channels.
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