Posted by Ahairytrader > 2020-06-21 15:18 | Report Abuse

Based on interview of Mr Loh Eng Chun (Executive Director) with The Edge which was published on Page 27 of the June 22-28 Issue, we have now more updated and relevant information that will give shareholders for clarity. Key points are:
1) Higher than normal net profit margin expected for Q2 and Q3 at least (contributed by the higher ASP of PP non-woven fabric especially in April and May).
2) Their PP non-woven segment currently going at full capacity but expecting to double their capacity sometime in Q3 this year (contribution comes earlier than what I have previously expected)
3) PP non-woven segment contributed 30% of revenue in Q1 and expected to be about 70% for Q2. From this new information, we're able to know exactly the sales for this segment in Q1 and better estimate for the rest of the year.
4) He confirms my previous assumption of a dividend payout this year given the good performance.
5) Currently, majority of sales for this PP non-woven segment are for the domestic market and their customers are the medical and mask players, although they have started to sell to North America and Europe too.

As such, it seems FY2020 will indeed be a bumper year for them and my previous estimate were indeed far too conservative. Assuming the information to be accurate, we can now assume EPS for FY2020 to hit 12sen, and they will most likely distribute 3.5sen dividend for the year in my opinion. At last closing price of 0.59 on 19 June 2020, it is currently trading at less than 5x FY20 earnings and potentially about 6% dividend yield. So go figure out your own TP from here :)

Posted by LookingForGrowth > 2020-06-25 08:52 | Report Abuse

Nice article, please continue to post more.

Posted by Hooi369 > 2020-07-07 09:13 | Report Abuse

thanks for sharing