Based on the above data, revenue has dropped 46% over 7 quarters almost quarter by quarter. This indicates falling business volume despite increasing international steel prices or product selling price.
There is this phenomenon that upstream raw material prices is increasing but lack of demand at downstream. This cost push inflation is always a bad sign for the economy, especially for downstream player like Choo Bee. This is because their raw material cost is going up but they cannot past down to customers as a result of lack of demand (slow down in property market), hence their margin will be squeezed. Also, their market share is very small and they are in very competitive industry hence it is even harder for them to pass on the cost.
If they r importing raw material from oversea after the closure of Megasteel, they are also in disadvantage due to weak ringgit.
Blog: Choo Bee’s FA, TA & Its business - Buddyinvest
2016-11-30 18:44 | Report Abuse
Based on the above data, revenue has dropped 46% over 7 quarters almost quarter by quarter. This indicates falling business volume despite increasing international steel prices or product selling price.
There is this phenomenon that upstream raw material prices is increasing but lack of demand at downstream. This cost push inflation is always a bad sign for the economy, especially for downstream player like Choo Bee. This is because their raw material cost is going up but they cannot past down to customers as a result of lack of demand (slow down in property market), hence their margin will be squeezed. Also, their market share is very small and they are in very competitive industry hence it is even harder for them to pass on the cost.
If they r importing raw material from oversea after the closure of Megasteel, they are also in disadvantage due to weak ringgit.