Big drop in share price is a reflection to management confident issue here. As long term investors, when you see that revenue increased by 179% but cost of sales increased by 370% that resulted in NP margin drop of 8% without any proper explanation, what would you think and do?
actually the report gt mentioned that the cost of sales increase was mainly due to R&D, if you trace back to few quarter before, it gt mentioned that they were upgrading their game software and increase in headcount start from Q4 2017. However for the forex loss, this will be mitigate as the government on August already remove the policy where the exporter no longer need to force exchange their revenue to Ringgit anymore
but sure still gt one doubt that why the cost of upgrading game software was beared by the company rather than charge customer ? May be their agreement is free upgrade? Need to be clarified more
one more thing, the revenue increase so much in this quarter was mainly due to the late order from quarter 1, so that those revenue will move to this quarter. Hope all these information will help u guys
Actually, RGB is one of the companies that had shown good mgmt to deliver predictable results all these years. As long term value investors for years, we expect it to deliver good revenue with expected NP for this quarter. But it really caught off guard with such a poor NP results without much explanation is a poor communication between the board to the investors.
@Valin, we understand that there were some carry over of Q1 revenue into this Q. The cost will be capture in the same period anyway. But we are just very concern about COS jumping so much that eroded the NP by more than 8% but do not understand where it comes from.
@TegasTSSB, I have just receiving some explanation from RGB The COS including (direct expenses relates to sales, purchase of material, freight, insurance for SSM, as well as staff cost, operation cost for TSM) The lower PBT was due to bulk order sales with lower margin in this year and sales of reconditioned machines with higher margin in last year
@ Valin, Thank you very much for your great effort in seeking explanations from RGB and getting back to us. We all know what is COS includes. When I look at your NP margins, i am not just looking at your FY2017 only. I am also looking at your FY2016 and 2015 results where during those period you have huge interest cost to erode your margin and yet you still can produce decent NP margin. ( in FY 17, you have fully paid off your long term loan and hence margin erosion due to interest expense is minimal and therefore have better margin)
I fully understand the dynamics of business environment and hence its NP margin but just hard to accept the current NP result.
Anyway, i would like to comment on your great effort in growing your revenue but would like the mgmt and board to pay more attention on cost containment in the future quarters as revenue growth and EPS growth are always the key criteria in investment. Not just either one.
Thank you for the great effort all these years in generating good return to share holders and hope you will continue to do so.
Price reversal after Qr out, buy in if able to catch up this golden opportunity. Plus, bonus issue 1:7 ex-date 18/9/2018 mah who know maybe can boost up the price.
Cash position is stronger at end Q2 than at end Q1. Q2 EBITDA is around RM19m vs Q1 RM14m. 2018 looks like a record year in terms of cash inflow - easily more than RM70m. Capex also up and will benefit the company later. Super growth ahead. Management needs to improve the dividend payout in order to support the share price.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
WSP88
572 posts
Posted by WSP88 > 2018-08-30 01:27 | Report Abuse
明天大涨还是大跌就要看大盘对公司老板的诚信度有多大的信任,要增持大量股份就会间接就把价格拉上,减少股份就会大量出货,价格一定被卖压出现超卖现象……