i expect that coming quarter result (as at 31 Dec 2016) will be very good. Reason is because during Oct till Dec 2016, MYR depreciate from RM 4.15 to RM 4.40. Every 10 cent depreciate in MYR will give good revenue to the company.
SmartInvestors@ attended the AGM and its management mentioned competition from China, long term investors should monitor this development closely. (short term participants should be ok, financial looks decent).
I have observed over the years, China competitors can actually negatively effect the local manufacturers, such as Ekowood. (May be others that I may not be familiar with).
Result so good? Gross profit drop, just other income that boost up the net profit.
Revenue For the quarter under review, the Group’s revenue surged marginally by 1.9% to RM209.4 million as compared to the preceding quarter of RM205.4 million. The marginal increase was mainly due to strengthening of US Dollar against Ringgit Malaysia by 3.4%. *However, the Group’s revenue in the USD term decreased due to drop in orders.*
Gross profit Gross profit of the Group amounted to RM72.4 million in HY2017, representing a decrease of 6.2% from RM77.2 million in HY2016. The decrease was in line with the decrease in revenue and higher labour costs and increase in prices of certain raw materials.
It's not a bad result, even if you exclude the 7.6 million 'Other Income' the EPS is still at a very healthy 29 cent for this quarter. Considering the so called challenges from the other chinese manufacturers, you could even consider it as a positive signal that they are able to more or less maintain their market share "only slight drop" in terms of revenue. And they countered this with higher margin too.
They have something that allows them to keep their margin, and market share. Which is definitely a good sign.
Definitely oversold at this price. And should easily be worth close to RM7 if you're conservative, or if you really want to ride it all the way to the top, even RM9-10
Cash all time high at RM227 million, market cap now only RM551M with latest quarter net profit 32M. For hevea, nearest quarter 17M and market cap RM773. And Latitude cash level easily beat Hevea, dont forget Hevea got dilution effect from warrant haven't factor in. Why market give low valuation to Latitude?
last time i predicted latitud annual turnover rm 800m and 12% net pmargin but obviously latitud spend the money for upstream activities(takeover and build up laminated woods processing com)to increase the com profit margin rather than push up thier production capibility to increase sales.latitud also build up new r & d centre and latest technology production line in vietnam for high margin products. good job done latitud.
Its interesting to note that the NAPS (Net Asset per share) has risen by almost $0.56 to $5.85 when the Foreign currency translation gain of $21.82mio is added.
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....
jeff10000
136 posts
Posted by jeff10000 > 2017-01-05 11:12 | Report Abuse
5.30 strong resistance. when broken, 5.80 next resistance. Any
comment fr any guru?