RGB not really manufacturer, consider assembly product? or as a distributor role ( buy and sell). Those parts should buy in USD. sell in USD. Logistic should know well, those electronic board or parts clearance should charge at foreign currency too.
most of their products are manufactured in malaysia. then it is exported mostly to phillipines where the bulk of their operations currently are. MYR had also weakened significantly to the pesos. They also receive fees from maintainance in pesos.
Beneficiary of ringgit weakness. The weak ringgit has weakened considerably against the Philippine peso and the Thai baht, currently down by -0.1% and 0.5% vs the two currencies’ respective 2014 average rates. Year-to-date, the ringgit on average has eased 6% and 5% against these currencies. These two functional currencies (the baht is is a functional currency at the Cambodian casinos bordering Thailand) account for the bulk of the STM division’s revenue base.
Logically they should with their labour cost in RM but in practice, they don't seem to benefit from the RM depreciation. In Q1, RM depreciated so much against the USD, Bath and Peso but still they reported forex losses.
Thanks Jayd3. UOBResearch seems to expect lots of things but they still have not explained why there is a forex loss in Q1. With the recent placement, company already cash positive. No need to wait until end 2015. Also no need to wait for dividend improvement in 2016. Dividend improvement should start when they announce Q2 results this month.
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....
funandgames
18 posts
Posted by funandgames > 2015-06-16 23:07 | Report Abuse
Agree, CFTrader but the management can easily increase the dividends which are lower than what the directors pay themselves.