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Focus Lumber's 1Q earnings up 89%!

GerrardChong
Publish date: Wed, 17 May 2017, 10:17 PM

Focus Lumber's 1Q earnings up 89% on improved production recovery rate, lower cost

KUALA LUMPUR (May 17): Focus Lumber Bhd posted a 88.92% increase in net profit for the first quarter ended March 31, 2017 (1QFY17) to RM6.26 million or 6.06 sen per share, from RM3.31 million or 3.21 sen a year earlier.

 
In a filling with Bursa Malaysia today, the company attributed increase in earnings to an improved production recovery rate and achieved lower production cost per cubic metre in the current quarter.
 
“In addition, the group had recorded a significant decrease in losses from foreign currency transactions, as compared to first quarter of year 2016,” said Focus Lumber.
 
For 1QFY17, the company registered an unrealised foreign exchange loss of RM112,000, compared with RM2.58 million last year.
 
Its quarterly revenue, however, was down 10.24% to RM47.83 million, from RM53.29 million a year ago, on lower sales volume, as well as lower selling price in U.S. dollar in the current quarter.
 
U.S. dollar selling price of their products has been decreasing moderately since the second quarter of year 2016, said the company.
 
“[The] shortage of logs supply has slight impact to our production process recently. In addition, strengthening of Ringgit Malaysia had reduced our profit margin in overall,” said Focus Lumber.
 
However, the company said it anticipates these situations to not prolong and no material adverse effect on its financial performance.
 
Going forward, Focus Lumber said the company will be continuously working towards improving the quality of the products and reducing average product cost, through investment in new machineries.
 
“Barring unforeseen circumstances, the Board is confident with the group’s prospects for the remaining period of current financial year,” said Focus Lumber.
 
Shares in Focus Lumber closed unchanged at RM1.71 today, for a market capitalisation of RM176.47 million.

 

http://www.theedgemarkets.com/article/focus-lumbers-1q-earnings-89-improved-production-recovery-rate-lower-cost 

 

What is the fair value?

Annual eps 24 sen 

pe 8x 

net cash RM1.07!!!

Fair value is RM2.99

Upside?

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1 person likes this. Showing 12 of 12 comments

suregain

Dun dream la.. The night stil young

2017-05-17 22:28

suregain

Look at d revenue yoy n qoq... U wil know tomorow up or down

2017-05-17 22:30

shareinvestor88

Sell. Profit down. FV 1.30

2017-05-17 23:23

suregain

Agree with shareinvestor88

2017-05-17 23:27

shareinvestor88

KYY sold off his shares too

2017-05-17 23:33

stockmanmy

Strong Balance Sheet Low PE, value investors dream stock.

but if you decide to buy, what are you betting on?

In the case of Jaks, the bet is that e IPP will be completed on time and according to plan making shareholders very rich

In the case of Sendai, the bet is that the future of Sendai is brighter than its recent past.


the secret to success in the stock market is to know why and what you are betting on.



My bet also...FLHB will end 2017 below $ 2.

2017-05-17 23:44

xiaoxiami

FLBHD last year have larger forex loss
if minus off forex exchange factor , yoy doesn't improve much

2017-05-18 00:02

kelvin61

Whether the IPP will be completed on time is not known. It is hope that all will be smooth. Till then, go and sweat it out and pray nothing untoward happens, while, shares like FLBhd is making good money and is cash rich. Even the major shareholder is buying back it's shares aggressively compared to Ang Lam Poh. Some people like to live on hope.

2017-05-18 22:25

kelvin61

BTW, that is why JAKS is going south these days. Wait for the surprise in coming qtr result announcement soon.

2017-05-18 22:27

stockmanmy

Strong Balance Sheet Low PE, value investors dream stock.

but if you decide to buy, what are you betting on?

2017-05-18 22:40

stockmanmy

BTW, that is why JAKS is going south these days. Wait for the surprise in coming qtr result announcement soon....and you get rewarded if you are right.

2017-05-18 22:41

smallcapgerm888

this post is intentionally misleading. excluding the forex items, profits are actually down 4%. be careful becoz this is classic example of value trap. sell TP RM1.50

2017-05-23 10:15

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