Dolly,

Thanks for your added info..appreciate it..

I am less than 1 week old in Prolexus....haha!
Earlier didn't look at it....haha!

So far no action from Trump.... is there any?

Trump labelled China as " Currency Manipulator" during the election campaign and after meeting Xi Jin Ping, softened or changed his stand..and perception of China...

All export companies will be affected anyway if Trump impose border tax... there will be retaliations from other countries....US consumers will pay more for their goods !! Haha!!

Today, US economy is no more a manufacturing based economy but Service based economy..... Taking manufacturing jobs home would not really benefit the US economy ....

My 2 SEN...

Foxxcom to Apple...
Inari to Broadcom...
Magni to Nike....
Prolexus to NIKE, UA,.ASICS.....

All these companies carry the risks of concentration of customers....

But if they are doing for world class companies, and if they have been doing it for a long time already....means that they did deliver and it means something about the qualities of their products and services...there are some barrier of entry....

FY16, Prolexus Apparel sales RM391millions, out of which RM371 million from 4 customers contributing more than 10% each....

Source: Prolexus Annual Report 2016 Page 98

Source of Magni FY16 sales... Magni FY16 annual report page 89...

Magni FY16 90% garment sales depends on one customer! Should be Nike...
(RM668 Miilion out of RM731 Million)

Nike was doing very well last FY...
Naturally Magni is doing excellently well !

Prolexus maybe doing less for NIKE as compared to Magni.... Possibly sales from UA was down....just my guess... for sharing of thoughts only....

No one knows who is going to have the last laugh yet...

Time is the determinant !

Hehehe!!

UA was not doing well...just replaced the CEO and COO....

Can call up the company and speak to the CFO.... I was told he was out station.... would be back tomorrow....

The main concern is the drop in top line revenue....

I3 is a very good forum especially for newbies...I also benefited a lot from the info shared therein unlike those days when internet was still not available... Investment info are scanty....Those who do not do homework usually ended up losers in the share market and are easily swayed by short term sentiments.....invariably buy high sell low !!! Haha !!

Haha! When sharing facts... it is not self comforting.... provided the info is true....current company business situation may be difficult ... May not be permanent ...though in every investment there are risks...

Mr Market penalised the share price severely.....

For investors seeking for value buys... Price down also very happy because they know what the are buying! Of course if the price goes up they are happier!

Different investors have different perspectives depending on their investment objectives !! Hahaha!!

The share price has fallen back to the level of the first half of 2015....meaning....2 years no advance in share price though a lot of work has been done for setting up the factories for the double expansion in Vietnam and Kluang...

I am very comfortable since found out that the management has big plan for the company...and aim high for growth!

:)

厚德载物
无德者， 何能载物？

Wah Lao Eh! By 2020, Prolexus will become a Billion Dollar Co ah? Wao! Meaning total number of shares after full conversion of warrants now is around 236 million, Share price by then would be at least RM4.20!

EPF can take over the whole company la... Sup Sup Sui la...LOL!!

If not mistaken, Both Manual Life and EPF declared holding more than 5% shares some time in April this year.

Guess what are their average costs..?

Most likely is above 1.36... my guess...:)

Prolexus advertised for Marketing General Manager and set " Target to grow the business from US100 million to USD300 million.. AMInvestment research report FY19 forecast revenue only RM464 million....LOL!

Today transacted volume: 2,637,300
Price range: 1.38-1.43; average price: 1.407

Opening price: 1.41, with a volume of 151,500 shares...gap down 14sen from previous close of 1.55...

Seems the opening price with a mere volume of 151,500 shares already determined the transacted price range for the whole day with bearish sentiments on the stock...lol!

Dolly,


It is in the web... please check for yourself.... however, I can't guarantee the accuracy and authenticity....

The closing date for the post of Marketing GENERAL Manager us stated therein is 14th July 2017...

It is current....

The chairman did say b4 of getting MARKETING people and based in Hong Kong....when he was interviewed by BFN business radio... please read and listen to the post below.

http://www.bfm.my/breakfast-grille-ahmad-mustapha-prolexus.html

Since the co has the expansion plan and target to grow sales from usd100 million to usd300 million as advertised in the recruitment advertisement in jobstreet.com, it gives me the confidence to buy for the future FY18 and FY 19...I believe some funds are accumulating....

I believe the investment thesis of the fund managers are buying for the expansion and Growth Story... there is no reason for them to sell due to 1 or 2 QR weakness...especially now that the factory would be completing in 1Q 18 and 2Q18.... there are always some up and down in the business journey of growing the business...

:)

Seems retailers are selling.....

Be greedy when people are fearful! Hahaha!

Bought for FY18 and FY19

Share price moves ahead of fundamentals, in tandem with expectations of the future !

Please dump the shares to cheap cheap tomorrow !
:)

https://www.jobstreet.com.my/en/job/3315710?fr

MARKETING GENERAL MANAGER
HONSIN APPAREL SDN BHD

TARGET TO GROW THE SALES FROM US$ 100 MILLION TO US $ 300 MILLION

CLOSING DATE : 14TH JULY 2017

So much hidden figures made results looked so BAD!!!

BUY !! BUY !! BUY!!


Disclaimer: Buy at your own risks! LOL!

Taxation
2017 ........2016 ......2017 ......2016
RM’000. ...RM’000...RM’000 RM’00
1,251....... (690) ......5,813 .....3,649
Individual Quarter... Cumulative Quarter
30 April..................... 30 April
The cumulative quarter effective tax rate of the Group is lower than the statutory tax rate due principally to
utilisation of unabsorbed tax losses brought forward in the local subsidiaries and tax incentives being enjoyed by the
foreign subsidiaries.

The individual quarter effective tax rate of the Group is higher than statutory tax rate due to inclusion of under
provision of prior year tax of RM1,017,000.

Magni's 4th Quarter (Feb-April) revenue also used to be the lowest of the 4 quarters. This year is exceptionally good. ... don't know the reasons?

Nike FY17 Revenue is USD 8.68 Billions. So do you think out there are people buying their products ?

http://www.cnbc.com/2017/06/29/nike-reports-fourth-quarter-earnings.html

Nike's revenue for last FY is USD8.68 Billion. Certainly Very BIG to accommodate good and quality players..

Those who can deliver would have a cut of the cake!

If Prolexus' management cannot deliver, someone please go and take over!! LOL!

Venfx,

Thanks..

Yes, the properties held by Magni at book value is way understated...:)

Niki,

After the capacity expansion, the company would be in a position to receive big orders from customers like NIKE....otherwise the management would not have go for the expansion if there is no market out there for the surplus capacity built with hard cash raised from the rights issue....:)

Niki,
Thanks for the quotation.
:)

Btw,

I further checked from AR16 that the PPE of Prolexus as at 31st July, 2016, RM49million in the factory buildings and land ...other machineries and equipment maybe around RM40 millions..

:)

I bought Prlexus for its expansion and Growth Story ...

1) its new plant in Vietnam which is supposed to start operation in 1QFY18, i.e. Aug-Oct 2017, just a few months away, which will initially enlarge the co's capacity by 30% and with the potential of doubling the capacity in future.
2) its new fabrics factory in Kluang which is supposed to start operation in 2QFY18 i.e Nov17-Jan18. This will ENHANCE the margin apart from generating additional revenue from sales of the fabrics to other manufacturers.

Prlexus invested heavily in the past 3 years since 2014 in Plant and equipment which has increased to RM88million book value as at 30th April 2017 from about RM42million as at 31st July 2013.

This excludes the land use right of about RM12million..for the land in Vietnam...

The company has a long time business relationship with Nike since 1987 which accounts for approx 60%- 70% of its revenue and other branded apparel manufacturers account for approx 30%.

With the expansion, the machineries and equipment would be relatively new and thus should be more efficient.

However could the management deliver upon the completion of the capacity expansion?

Prolexus' RM88million in Property and equipment is relatively high as compared to others...

To my surprise, Magni has far less than that and yet
produced more than RM 1 Billion in revenue for its FY17.

The expansion programme is just about completing and will commence production in the 2nd half of this Calendar year amidst disappointing current quarter results and the unknown next quarter....

Should I sell for the disappointing current quarter results or should I buy for the "exciting" expansion and Growth which is just round the corner...?

:)

I would be happier if I can collect at lower prices next week... Haha!

Yes, share price would be down temporary and it would be opportunity for some investors. It would not derail its growth trajectory....

PROLEXUS 5 YEARS RECORDS OF REMARKABLE GROWTH SPEAK FOR ITSELF.

PROBABLY EXPERIENCING TEMPORARY HICCUP....


RM’000
Financial Results:
FY...........2012.....2013.......2014.......2015......2016.
Revenue 189,498 235,545 294,113 350,340 402,737
Profit before tax 10,568 19,404 24,173 31,055 40,686
Profit for the year 10,836 17,162 20,801 24,023 33,247
Profit attributable to owners of the Company 9,961 15,449 18,487 20,772 28,349
Financial Position:
Total assets 90,507 114,980 149,910 192,074 303,821
Paid-up capital 40,000 40,000 40,870 57,931 88,389
Shareholders’ funds 59,048 74,114 92,694 114,455 196,405
Financial Ratios:
Earnings per share (sen)** 8 12 14 15 19
Dividend per share (sen)* 1.5 3.0 3.5 4.2 3.3
Dividend amount (RM’000)* 830 1,863 2,688 4,649 4,683
Net tangible asset per share (sen)** 44 55 68 81 131

WALAO EH!
Suddenly so many negative guys come and bombard together!

All talking the same language!
It is organised or coincident ?

Niki

You earlier worried the expansion only grow 30%....actually, it is 30% initially... with potential to DOUBLE the existing capacity ! :)

Looking at the QR closely, TOTO is right on, that the profit before tax dropped a little yoy. The previous quarter had a tax write back of RM 690K and this quarter a tax of RM1.251M making a sharp difference of 1.941M

I think this is a buying opportunity....I will add...:)

Extract from the HEADLINES ABOVE

"Maintain Buy..........."


" Meanwhile, Prolexus’ exciting double plant expansion remains on track to be completed in FY18. We anticipate its new Vietnam plant to commence operations in 1QFY18. It will initially enlarge existing output by 30%, with the potential to double existing capacity. Meanwhile, its Kluang fabric mill is scheduled to begin operations in 2QFY18. The fabric mill will enhance margins with cheaper knitted fabric input produced in-house."

PLEASE NOTE:

The Vietnam plant initially enlarge existing output by 30% with the potential to DOUBLE existing capacity...

The fabric mill will ENHANCE MARGIN .....:)

May not reach ! Haha! As soon as it goes below 1.40, people will sapu.... but who is willing to sell since most know the growth story and after seeing Magni's outstanding performance!

Many will hold for a 2nd Magni!

It is possible to become a 2nd Magni so long as the growth materialises!

The bottomline is the qualities of the products manufactured by Prolexus if they meet the requirements of the OEMs ? But since the co is in the business for a long long time already and also have long time relationship with the OEMs, this should not be a problem, should it?

Is this an opportunity to enter ?

Haha!

Many bargain hunters including fund managers will queue to buy for the future expansion plan....

The track records since 2012 is beautiful with steady growth every year and now the expansion plan..what a good growth story...

A shortfall in the top and bottom line for the weakest 3rd Quarter, accounted for only a short fall of 1.6sen eps..The full year impact is actually minimal if the future expansion plan and growth story is still intact...

Maybe an opportunity to bargain hunt for the long term growth story and contract manufacturing for world leading brands like NIKE..... :)

Happy Weekends to all the winners! :)

Why the 3rd Quarter revenue, every year the Same, is always the weakest quarter for Prolexus ?

What is the average costs of EPF and Manulife ? Haha!

Monday buy cheap! Haha!

Many fund managers in this stock.....They are investing for the future..... if the business is managed properly, it can grow and perform like Magni ...since it is also contract manufacturing for Nike for a long long time ......

Same industry and also same contract manufacturers to OEM like Nike, why the differences?

Prlexus is also a long time apparel manufacturer since the 70s? The MD is very experienced in the trade....

Toto2009

you are also here...

I am new to Prlexus. How long you have been a shareholder of Prlexus?