Article from The Edge

For the fourth quarter ended Dec 31, 2017 (4QFY17), PIE’s net profit grew 2.7% year-on-year (y-o-y) to RM23.86 million on lower administrative and distribution expenses, higher income from scrap sales, a reversal of impairment of trade receivables and provision for slow-moving inventories.

The improvement in earnings was offset by lower revenue and foreign exchange (forex) gain, and higher cost of sales.

Quarterly revenue, however, dipped 5.3% y-o-y to RM183.29 million due to reduced demand from existing customers for EMS but partly offset by higher revenue recorded for raw wire and cable products, wire harness products and trading activities.



PIE, which is in the business of manufacturing and trading, is upbeat about the group’s performance going forward, expecting revenue to hit RM1 billion within three years based on its current capacity and capability to produce.

“Actually it is not difficult [to achieve]. Looking at our [past] quarterly earnings, we are already hitting close to RM200 million in revenue. So, we have the capacity and capability to produce RM1 billion revenue. It just depends on securing relevant business and good sales,” said Mui.



From the above i dont understand is when Quarterly revenue, however, dipped 5.3% y-o-y to RM183.29 million due to reduced demand from existing customers for EMS but partly offset by higher revenue recorded for raw wire and cable products, wire harness products and trading activities. but on the other hand management so confident to their future revenue to hit RM1 Billion.

Answers yourself before invest.

Matthiew : thanks for support me.anyway my comment not 100% accurate, i may take the risk if the outcome is difference.do your homework before invest.

Please repeat the same statement,so that may be management wil aware of their problem 1 day.

i wrote this statement to prevent management repeat same mistake/ no excuse to repeat same mistake unless they can clarify their actual reasonable reason to convince us.


Poultry integration
The poultry integration segment recorded a decrease of 14.6% in revenue to RM169.9 million in Q4 2017 as compared to RM198.8
million in Q4 2016, mainly due to lower sales volume and live birds selling price in Q4 2017 but was partially offset with higher sales
recorded in poultry processed products. In Q4 2017, the poultry integration posted an operating profit of RM3.5 million as compared to
RM17.5 million in Q4 2016 mainly due to lower margins arising from lower live birds selling price coupled with higher operating expenses
and a lower net fair value gain on biological assets in Q4 2017.
The poultry integration segment recorded a 5.2% decrease in revenue to RM761.4 million for the 12 months ended 31 December 2017
as compared to RM803.3 million in the preceding year mainly due to lower sales volume in 2017. The segment registered a lower
operating profit of RM37.1 million for the 12 months ended 31 December 2017 as compared to an operating profit of RM61.5 million
posted in the preceding year. The decrease was mainly due to lower margins in the segment coupled with higher operating expenses but
was partially offset by an increase of RM3.0 million in net fair value gain on biological assets in the 12 months ended 31 December 2017.
In 2016, there was a one-off insurance recovery of RM4.2 million

I .i dont understand is when poultry intergrated company like QL can earn higher profit ,why only Mflour incurred earning reduce 50% for Poultry segment.
01/03/2018 10:12
02/03/2018 09:44

Please repeat the same statement,so that may be management wil aware of their problem 1 day.
i wrote this statement to prevent management repeat same mistake/ no excuse to repeat same mistake unless they can clarify their actual reasonable reason to convince us.

from the report,i notice the inventory & biological asset level become high & higher from quarter to quarter.It seem not good for consumer product to keep so big amount of stock for this fast change enviroment. It also cause the cash level drop from 371Mil to 257mil. reduce almost 80mil,(equalvalent to 15 dividend can payout to shareholder).Borrowing 1.12billion also consider high if compare with net earning 72mil per yer. because interest incurred let said 2% already cost 24mil per year or may be more than that.


Foreign currency risk-15mil seem to high when ringgit malaysia become strong.For those who loan in USD 529milRM should benefit from strong ringgit.why it does not happen in this quarter.

Anybody can give further information.
01/03/2018 10:02

please repeated highlight the same issue ,so that may be managment wil notice one day. I wrote this statement to prevent management repeat the same mistake /no excuse for the same mistake.

Profit decreased by RM4.14 million from RM3.8 million in the previous quarter as compared to the current
quarter’s loss before tax of RM0.34 million, mainly due to higher material and operating costs in the current quarter under review

-From the above statement, i agree there is a possibility of high material cost for the quarter under review.
But why operating cost also increase when revenue decrease / production decrease . From my understanding " for example if company engage 100 people for production line,monthly cost for manpower should be fixed .Electrical & water incurred in production should be reduce when production decrease.
Anybody who know this issue please highlight.

If no answer given,i wil treat this as a wastage in production.This is bad practice in manufacturing line.


28/02/2018 21:02
02/03/2018 09:37

please repeated highlight the same issue ,so that may be managment wil notice one day.

Another main reason is the reversal of RM3.01 million that was
recognised in the first quarter of the current year as gain on disposal of machinery. The equipment supplier
decided that they do not need the equipment and instead of a trade-in, they gave us a discount of RM3.01
million.
This also another un acceptable reason-did company engage unqualify engineer to make the wrong dicision to purchase the wrong machinery,until the company need to back charge under this quarter.
Doubtful debt appear 2 time in current financial year.
If this 2 issue continue happen,is unfair to the long term investor.
Management ,pls do the necessary step (SOP) to protect the shareholder interest.
Pls dont be silent,pls show the result to convience us.
28/02/2018 20:41
02/03/2018 09:33

see all the big shark came out to hantam the injured fish,they are the 1 always become winner

dividend 1 cent only RM10,but if for those buy at RM1.30 already loss RM230 per share

dividend 1 cent only RM10,but if for those buy at RM1.30 already loss RM230 per share

Wheat May 2018

USD514.25 up USD90 dollar within 10 days time.

sure management wil tell you again profit down due to material cost up,then alu sai again.

amzarb44 : i wait for green to sell
02/03/2018 10:57

amzarb44 ,how to wait turn green,you see all red.

amzar , they can share here because here is the most popular station where everybody can read or hear

we already share so much,if management stil not willing to clarify/promote themself,then you know what to do.

we already share so much,if management stil not willing to clarify/promote themself,then you know what to do.

if you think management wont change their mind,i suggest you sell now before to late.

cyeec2000,-most of the production line in tin manufacturer & milk powder are automated,so i dont think this is the valid issue for profit drop.

As a conclusion it seem like to consider down grade this counter to RM1.50 that comment by

Matthieu Seven:

look like the latest QR profits back to year 2015 level. Will also the price drop back to 1.50??
01/03/2018 10:14

Please repeat the same statement,so that may be management wil aware of their problem 1 day.

Poultry integration
The poultry integration segment recorded a decrease of 14.6% in revenue to RM169.9 million in Q4 2017 as compared to RM198.8
million in Q4 2016, mainly due to lower sales volume and live birds selling price in Q4 2017 but was partially offset with higher sales
recorded in poultry processed products. In Q4 2017, the poultry integration posted an operating profit of RM3.5 million as compared to
RM17.5 million in Q4 2016 mainly due to lower margins arising from lower live birds selling price coupled with higher operating expenses
and a lower net fair value gain on biological assets in Q4 2017.
The poultry integration segment recorded a 5.2% decrease in revenue to RM761.4 million for the 12 months ended 31 December 2017
as compared to RM803.3 million in the preceding year mainly due to lower sales volume in 2017. The segment registered a lower
operating profit of RM37.1 million for the 12 months ended 31 December 2017 as compared to an operating profit of RM61.5 million
posted in the preceding year. The decrease was mainly due to lower margins in the segment coupled with higher operating expenses but
was partially offset by an increase of RM3.0 million in net fair value gain on biological assets in the 12 months ended 31 December 2017.
In 2016, there was a one-off insurance recovery of RM4.2 million

I .i dont understand is when poultry intergrated company like QL can earn higher profit ,why only Mflour incurred earning reduce 50% for Poultry segment.
01/03/2018 10:12

Please repeat the same statement,so that may be management wil aware of their problem 1 day.

from the report,i notice the inventory & biological asset level become high & higher from quarter to quarter.It seem not good for consumer product to keep so big amount of stock for this fast change enviroment. It also cause the cash level drop from 371Mil to 257mil. reduce almost 80mil,(equalvalent to 15 dividend can payout to shareholder).Borrowing 1.12billion also consider high if compare with net earning 72mil per yer. because interest incurred let said 2% already cost 24mil per year or may be more than that.


Foreign currency risk-15mil seem to high when ringgit malaysia become strong.For those who loan in USD 529milRM should benefit from strong ringgit.why it does not happen in this quarter.

Anybody can give further information.
01/03/2018 10:02

please repeated highlight the same issue ,so that may be managment wil notice one day.

Profit decreased by RM4.14 million from RM3.8 million in the previous quarter as compared to the current
quarter’s loss before tax of RM0.34 million, mainly due to higher material and operating costs in the current quarter under review

-From the above statement, i agree there is a possibility of high material cost for the quarter under review.
But why operating cost also increase when revenue decrease / production decrease . From my understanding " for example if company engage 100 people for production line,monthly cost for manpower should be fixed .Electrical & water incurred in production should be reduce when production decrease.
Anybody who know this issue please highlight.

If no answer given,i wil treat this as a wastage in production.This is bad practice in manufacturing line.
28/02/2018 21:02

Another main reason is the reversal of RM3.01 million that was
recognised in the first quarter of the current year as gain on disposal of machinery. The equipment supplier
decided that they do not need the equipment and instead of a trade-in, they gave us a discount of RM3.01
million.
This also another un acceptable reason-did company engage unqualify engineer to make the wrong dicision to purchase the wrong machinery,until the company need to back charge under this quarter.
Doubtful debt appear 2 time in current financial year.
If this 2 issue continue happen,is unfair to the long term investor.
Management ,pls do the necessary step (SOP) to protect the shareholder interest.
Pls dont be silent,pls show the result to convience us.
28/02/2018 20:41

if wait until RM1.50,means no hope liao!Money122,you need to consider sell now where you can safe guard your money.

not at all.i wil continue to voice out if i found there is ilogical practice.

never mind.let see what the stock price if new plant (82mil) still not contribute for thecoming quarter.i think coldeye also wil leave this counter soon.

only invest:
beside stay in 5 star hotel,you need to monitor the daily transaction whether player take this opportunity to sell off their share before /may2018

if this issue not solve asap,i'm not afraid to said that this company may be incurred loss for the coming quarter..
Dont forget high material cost & doubtful debt issue still not settle.
I rather down grade this counter to 90cent before any improvement

As at end of Dec 2017, the new plant still haven't started to contribute to the company revenue and bottom line as per confirmation with the investor relation department.

CY1214,if you the boss of this company,do you willing to wait 1 more year to start contribute to company after spend 82mil for the past 5 years.rediculous

Matthiew :

Never mind.whether Ah kong money or Tan Keng Kan money,if they continue buy back is consider oK.let repeat my statement

see,our Tauke Tan so steady,he wil fulfil what he said every year.for those who want to invest in this counter,dont play play.
23/02/2018 23:04

when EPF & retire fund in we are told to leave this counter,dont wait like Sign,Prolexus & UMW drop like hell.

Dear friend :
since GE14 is near to the corner,let take a rest because i forsee nearly 40 % of share price(include O & G but excluded banking sector) keep on droping after chinese new year.Not a good sign to enter market now.

As a conclusion it seem like to consider down grade this counter to RM1.50 that comment by

Matthieu Seven:

look like the latest QR profits back to year 2015 level. Will also the price drop back to 1.50??

Key factor profit reduce,

Poultry integration
The poultry integration segment recorded a decrease of 14.6% in revenue to RM169.9 million in Q4 2017 as compared to RM198.8
million in Q4 2016, mainly due to lower sales volume and live birds selling price in Q4 2017 but was partially offset with higher sales
recorded in poultry processed products. In Q4 2017, the poultry integration posted an operating profit of RM3.5 million as compared to
RM17.5 million in Q4 2016 mainly due to lower margins arising from lower live birds selling price coupled with higher operating expenses
and a lower net fair value gain on biological assets in Q4 2017.
The poultry integration segment recorded a 5.2% decrease in revenue to RM761.4 million for the 12 months ended 31 December 2017
as compared to RM803.3 million in the preceding year mainly due to lower sales volume in 2017. The segment registered a lower
operating profit of RM37.1 million for the 12 months ended 31 December 2017 as compared to an operating profit of RM61.5 million
posted in the preceding year. The decrease was mainly due to lower margins in the segment coupled with higher operating expenses but
was partially offset by an increase of RM3.0 million in net fair value gain on biological assets in the 12 months ended 31 December 2017.
In 2016, there was a one-off insurance recovery of RM4.2 million

I .i dont understand is when poultry intergrated company like QL can earn higher profit ,why only Mflour incurred earning reduce 50% for Poultry segment.

from the report,i notice the inventory & biological asset level become high & higher from quarter to quarter.It seem not good for consumer product to keep so big amount of stock for this fast change enviroment. It also cause the cash level drop from 371Mil to 257mil. reduce almost 80mil,(equalvalent to 15 dividend can payout to shareholder).Borrowing 1.12billion also consider high if compare with net earning 72mil per yer. because interest incurred let said 2% already cost 24mil per year or may be more than that.


Foreign currency risk-15mil seem to high when ringgit malaysia become strong.For those who loan in USD 529milRM should benefit from strong ringgit.why it does not happen in this quarter.

Anybody can give further information.

i think it need to take 2 year to digest the current situation,let buy at lelong price now.

For your info,since i m a long term investor for this company & never sell 1 lot of share until now ,so i really need to get the true info from the company.are you serious on your investment?pls share why u invest in this company?

Matthiew : your statement is wrong,within Nov 2017 to 19 Jan 2018,company buy back around 2600lot at min RM5.11-RM5.23,see how generous tauke Tan,He earn money from public but finally he buy back their own share.

Mr Lew :
1.may i know are you the employee of this company,how you know the machine is clasify as old machine & not the new machine that i mention above.

2. i not agree your statement : 2) operation cost = "allowance of doubtful debt" + "material cost" + "utility" + all others cost. , from the accounting principal : operation cost = manpower + utility + other production overhead. material cost & allowance of doubtful debt are difference categories.

3. How you know when the milk power price is lower at Jan & Feb compare to DEC, Q1 should be higher margin as they purchase powder by batch due to it easily spoil .

my intention above is to double confirm the true of the statement.not to hurt somebody.anyway thanks for your reply.

www.sinchew.com.my/node/1731438/陈景岗：子公司年年赚钱．有信心海鸥股票大涨

Itg100y- from my point of view, i dont see Q4 low raw materials price may be reflected in Q1/Q2 2018. if gain on disposal of machinery & doubtful debt appear again in the coming quarter.Think logically before invest.I rather down grade this counter to 90cent before any improvement.

Profit decreased by RM4.14 million from RM3.8 million in the previous quarter as compared to the current
quarter’s loss before tax of RM0.34 million, mainly due to higher material and operating costs in the current quarter under review

-From the above statement, i agree there is a possibility of high material cost for the quarter under review.
But why operating cost also increase when revenue decrease / production decrease . From my understanding " for example if company engage 100 people for production line,monthly cost for manpower should be fixed .Electrical & water incurred in production should be reduce when production decrease.
Anybody who know this issue please highlight.

If no answer given,i wil treat this as a wastage in production.This is bad practice in manufacturing line.

Another main reason is the reversal of RM3.01 million that was
recognised in the first quarter of the current year as gain on disposal of machinery. The equipment supplier
decided that they do not need the equipment and instead of a trade-in, they gave us a discount of RM3.01
million.
This also another un acceptable reason-did company engage unqualify engineer to make the wrong dicision to purchase the wrong machinery,until the company need to back charge under this quarter.
Doubtful debt appear 2 time in current financial year.
If this 2 issue continue happen,is unfair to the long term investor.
Management ,pls do the necessary step (SOP) to protect the shareholder interest.
Pls dont be silent,pls show the result to convience us.

Lee,dont ever listen to investment bank advise,do your home work.now a day i notice that the counter brought by EPF,investmentbank & other retirement fund ,all drop after announcement.but i dont know the reason behind.

so lau sai performance also consider strong buy by Kenanga.I think this guy buy at high price & try to cash out asap.dont follow. my TP 1.10.

sebastian where you get the below infomation

Most modern plant in the region
Malayan Flour expects the primary process of the new poultry
processing plant will be completed by the middle of 2018 and further
processed will be done by end of 2018. Using the latest technology, the
new facility will triple current production capacity. If all goes to plan,
projected revenue growth will be materialised over a period of 2 and
half years to reach the full capacity.
27/02/2018 23:58

Ah Beng can sapu as much as he want.but for what purpose if company performance not improve.unless for take over purpose. it wont happen in this company.

it quite confuse to conclude margin down due to higher material cost. according to world milk powder price for Oct -DEC 2017 is reletively low compare to previous quarter & Strong ringgit wil reduce the purchase value.it should be benefit johotin,am i right.

thanks for your advise. for your info that the CAP expenditure per year (for 3 years) around 180Mil.

actually net profit increase if excluded exceptional gain on disposal of it subsidiary last year. I will invest due to the only reason if company continue pay out 10% of dividend.is 3 time of our bank fixed deposit.

if this quarter incurred loss the only reason is due to large amount of cap expenditure incurred for the construction of ayam dinding new plant.

pls provide sources of info that LED industry to boom