Raising forecasts. We lift our earnings forecasts by 53-56% for FY15-16 and by 12-13% for FY17, to take into account the leveraged impact of the weak MYR on earnings. Our forecast currently assumes exchange rates of MYR3.90/MYR4.30/MYR4.20/USD for FY15/FY16/FY17, respectively. We highlight that every MYR0.10/USD change in exchange rate could increase WTK’s net earnings by c.13-15%.
9M15 core net profit rose 22% YoY, while revenue improved by 2%. The improvement in profit came mainly from the timber division (pretax profit +7% YoY), as WTK benefitted from the leveraged impact of the weak MYR/USD rate, which depreciated by 18.6% YoY in 9M15. This was offset by weaker contributions from the manufacturing division (pretax profit -13% YoY) and higher losses at its plantation arm.
Improvement in plywood sales volume coming through. In 9M15, log prices were up 8.5% YoY. Log sales volume fell 8.1% YoY in 9M, although log production only fell 1.3%, which implies that some inventory could be held back during the quarter. Plywood demand improved in 3Q, as sales volume rose 2% YoY in 9M15, up from -13.5% YoY in 1H15, although prices remained weak, declining by 7.8% YoY.
Dalpinia, thank you and let's pray hard, I learned a lot from Mr. OTB, sector and industry to focus, buy at the onset of momentum, look for quarterly growth etc
production volume is correct. but bear in mind, production is not equals to sales. they produce 100, they can sell 50 enough, other 50 keep in inventory.=X
WTK was testing the MYR1.35 resistance level in its latest session. Traders may buy if this level is breached in the near term, with a target price of MYR1.49. In the meantime, the stock may consolidate further if the MYR1.35 level cannot be breached. Support may be found at MYR1.27, where traders can exit upon a breach to avoid the risk of a further correction.
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....
Sapphire
1,765 posts
Posted by Sapphire > 2016-01-04 00:30 | Report Abuse
thanks anyway..I just a copycat only...haha..