Thursday 15 October 2015

Is Johotin due for sector reclassification?

Johotin is listed under industrial sector. I think it is more rightly to re-classify Johotin as a consumer products counter.

According to Paragraph 4.2 of Bursa's Practice Note 7 - Classification of applicants and listed issuers,

In determining the Classification of the applicant or listed issuer into any one of the Sectors, an applicant or a listed issuer must examine the amount of contribution made by its various business activities for the past 2 years. A listed issuer will be classified into the Sector which most closely fits its source of revenue or if there are several sources of revenue, the business which consistently generates the highest revenue of the listed issuer. The Classification will also be determined based on either the immediate end use of the product or the industry processes used.

Johotin's F&B segment has overtaken its tin manufacturing division since 2012 and maintain a large gap between the two divisions.




 It could be a potential re-rating catalyst when the stock is reclassified into consumer products sector

1 comment:

  1. Yeah, please write to the company to request them to change.