MSM's business is in sugar refining. It's actually a subsidiary of FGV (Felda Global Ventures). Chances are, MSM's product are seen at grocery and hypermarkets. Your roti canai, cakes most probably had raw ingredients (sugar) from MSM.
This company's stock is not an investor favorite at the moment due to :
- its ties with FGV
- making a net loss
- losing monopoly over sugar supply (other companies can supply)
- no dividends due to its net loss position.
- Sugar price is a controlled item by the government
MSM's 2019 AGM was held at Menara Felda, a fitting place since it is a subsidiary of FGV (Felda Global Ventures)
The door gift for the meeting was lunch pack + a packet of Prai sugar and RM30 FGV product voucher that can be used at Tesco stores. The Prai sugar brand is one of the products that is produced by MSM Malaysia. The other FGV consumer brands is the Saji cooking oil, but this product is not under this company, the voucher can be used to purchase Saji cooking oil also.
MSM's chairman Datuk Azhar mentioned that the group this was a challenging year for MSM and they intend to diversify to supply alternative sugar sweeterners for the more health conscious crowd.
At the moment in Malaysian MSM and CSR (Central Sugar Refinery) are the 2 sole supplier of sugar in Malaysia, making it a duopoly. While it is a duopoly, sugar price is controlled and margins are very thin. CSR, another company under TradeWinds seems to be also struggling but it is not listed in Bursa (used to be listed)