Posted by Icon8888 > 2015-05-27 12:25 | Report Abuse

Not yet, but set aside some bullets

Posted by member41 > 2015-05-27 19:29 | Report Abuse

Profit halved... cham
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4754053

Posted by Icon8888 > 2015-05-27 19:41 | Report Abuse

Don't panic, mostly due to RM3.4 mil forex loss

Posted by xcu843 > 2015-05-27 19:57 | Report Abuse

Result look ok based on revenue.

Posted by luiz83 > 2015-05-27 20:12 | Report Abuse

Anyone have idea how long will the China losses continues? The report seems like have little info on this

Posted by Icon8888 > 2015-05-27 21:28 | Report Abuse

Patience required.... According to Focus Malaysia, their old (high cost) inventories would be fully used up in the March quarter. Next quarter will reflect better margin

Posted by roadtax3 > 2015-05-27 21:36 | Report Abuse

from bad to worse, 3 consecutive bad quarterly result. what are they doing?

Posted by johnny cash > 2015-05-28 07:53 | Report Abuse

1Q hit by forex losses
Thong Guan’s 1QFY15 net profit, at 53% annualised, was below market and
our expectations as its earnings was hit by realised forex losses and also lower
revenue contribution from Japan, its largest market. We cut our FY15-17 EPS
forecasts to reflect slower sales from Japan and forex losses. Our target price
also falls based on unchanged 30% discount to its fully-diluted SOP. Potential
re-rating catalysts are EBITDA margin recovery and sales recovery from
Japan market. The stock remains an Add.
1Q15 net profit down due to realised forex loss
Although Thong Guan’s 1Q15 revenue was only down 9.6% yoy, its 1Q15 net
profit was down 45% yoy, mainly due to forex losses – RM3.4m realised and
RM0.8m unrealised. The lower revenue was mainly due to lower average
selling prices (due to the fall in crude oil prices) and softer sales from Japan.
No interim dividend was declared, in line with our expectations. Excluding the
realised and unrealised forex losses, Thong Guan’s 1Q15 EBITDA margin was
7.0%, just slightly lower than 1Q14’s 7.1%. It is impressive that the company can
sustain its EBITDA margin in 1Q15 on the back of lower revenue. We believe
this was possible as the weaker Ringgit helped, in terms of lowering labour and
electricity costs as most of its revenue was denominated in US$.
Weaker Japan sales
Sales from its biggest market, Japan (accounts for ~30% of revenue), declined
in 1Q15, mainly due to slower demand starting from Apr as sales tax increased
from 5% to 8%. By Oct 2015, sales tax will rise to 10%. We understand that
higher sales taxes were needed in Japan to cover the rising social welfare costs
for its aging population. This country has one of the world’s lowest birth rates
and the world's highest ratio of elderly to young people. This raised concerns
about its long-term economic growth.
Debt-free balance sheet
Thong Guan’s balance sheet featured RM2m net cash as at end-Mar. There
were no major capex in 1Q15. Its capex was RM28.9m in 2014 and RM15.4m in
2013. We estimate that the company will invest RM100m in total over
2014-2016 to raise its annual production capacity from 120,000 tonnes to
170,000 tonnes, main focus on thin stretch films and PVC food wrap films.

Posted by johnny cash > 2015-05-28 07:55 | Report Abuse

TARGET PRICE BY CIMB REDUCE TO 2.44 FROM 3.06

Posted by Icon8888 > 2015-05-28 20:02 | Report Abuse

4 sen dividend ! Thank you thank you

I always know I won't regret putting my $$$ with u. : )

Posted by ong4965 > 2015-05-29 09:34 | Report Abuse

Hi Icon8888, i will attend Tgaun AGM next month. Any query you want forward to management?

Posted by Icon8888 > 2015-05-29 16:09 | Report Abuse

No query. I will just hold on patiently

Posted by cbtinvest > 2015-05-29 18:18 | Report Abuse

Pls ask then whther they wan petrol price up o down? Zz

Posted by cbtinvest > 2015-05-29 18:28 | Report Abuse

oil price up said raw material cost up. Up price down said forex kiss

Posted by cbtinvest > 2015-05-29 18:28 | Report Abuse

Loss*

Posted by Icon8888 > 2015-05-29 20:07 | Report Abuse

if you don't have patience to hold, better sell, haha

Posted by ong4965 > 2015-05-30 12:09 | Report Abuse

Hi, cbt. totally agree wiht Icon8888. Don't too much worry because Tguan earning just affect by Marco factor which is temporary.I foresee a knee jack result after those marco factor.

Posted by ong4965 > 2015-05-30 12:30 | Report Abuse

Actually fluctuation of oil price is not much affect the earning because packaging product are almost trade as commodity. Raw material cost will converse to selling price because of competitive market. But the sharp drop ( -20 to -50 % in short term ) of oil price and RM currency is an occasional case. this may diff because,

1. Last quarter inventory average cost is higher than profit margin.

2. Tgaun secure most of the borrowing in USD. Weaken RM dilute earning in overall.

Posted by Icon8888 > 2015-05-30 16:28 | Report Abuse

Next Q will rebounce

I am pretty confident

If you guys want to sell, I am happy to pick up more ha ha

Posted by ong4965 > 2015-05-30 22:52 | Report Abuse

we are same boat. ha ha

Posted by xcu843 > 2015-05-31 00:09 | Report Abuse

Do you know why earning per share drop?
When need money to buy new equipment, report show very good up trend. Because need share holder to support. Now no need already, sure show down trend. Bcos later they propose share buyback. This shows big fish eat small fish.

Posted by jeannie > 2015-06-03 10:35 | Report Abuse

hmmm...but this a strong company, nothing to worry...if they keep falling..I'll pick more for peaceful retirement.

Posted by jberon > 2015-06-04 00:24 | Report Abuse

oh .. minor drop only lah . berniaga ada time untung , ada time rugi cool maa

Posted by xcu843 > 2015-06-04 22:55 | Report Abuse

Keep for long time ok. But at least need to keep for minimum one year.

Posted by ong4965 > 2015-06-05 10:34 | Report Abuse

Cool eyes is one of the 30 major shareholders. :)

Posted by Icon8888 > 2015-06-10 12:25 | Report Abuse

no more selling ?

Posted by cbtinvest > 2015-06-11 23:32 | Report Abuse

ong4965 can quote ur source tq

Posted by jeannie > 2015-06-12 10:07 | Report Abuse

looks like is coming back now

Posted by icon8888 > 2015-06-13 12:12 | Report Abuse

Somebody buying...

Posted by member41 > 2015-06-13 12:14 | Report Abuse

Waited 2 year for this share up from 1.3. Need patience for this stock.

Posted by icon8888 > 2015-06-13 12:50 | Report Abuse

In my opinion, if 2 years can achieve this kind of return, Ichiban !!!

Posted by ong4965 > 2015-06-13 17:12 | Report Abuse

CBinvest, you can get it from Tguan latest annual report.

Posted by Evertraveler > 2015-06-14 23:25 | Report Abuse

What is the real name of Cold Eyes?

Posted by Icon8888 > 2015-06-22 15:55 | Report Abuse

http://klse.i3investor.com/jsp/blog/blallpost.jsp?blid=1338

my latest article

Posted by speakup > 2015-06-22 15:56 | Report Abuse

Fong Si Ling

Posted by Sebastian Sted Power > 2015-07-10 10:56 | Report Abuse

Icon, why keep droping???

Posted by cherry88 > 2015-07-11 09:29 | Report Abuse

because still bleeding blood mah............

Posted by member41 > 2015-07-11 11:50 | Report Abuse

All waiting next month quarter results to see if turnaround.

Posted by cherry88 > 2015-07-14 13:36 | Report Abuse

Difficult lah...........they don't even make some "extra gain" from the strengthening of the usd......and even loss.....lousy management

Posted by kakashit > 2015-07-15 20:14 | Report Abuse

The Edge boss TKO announced he has sold out Tguan, causing further bleeding

Posted by kakashit > 2015-07-15 20:17 | Report Abuse

I heard Tguan management often organize meeting at Guangzhou, but there is no female collegue joining one

Posted by cbtinvest > 2015-07-16 11:17 | Report Abuse

Kakashit what r u trying to say lol

Posted by jeannie > 2015-07-23 09:57 | Report Abuse

hi hi..its up today, any news???

Posted by cbtinvest > 2015-07-23 10:57 | Report Abuse

Got volume?

Posted by chankp7010 > 2015-07-23 12:12 | Report Abuse

Coming quarter results must be good. Likely insiders are buying. Soon it will touch RM2.30

Posted by cbtinvest > 2015-07-23 16:50 | Report Abuse

Last 2 quarters also many saying result must b good haha

Posted by stcoatings > 2015-07-23 23:01 | Report Abuse

consolidation period is over, time to move upward

Posted by xcu843 > 2015-07-24 10:59 | Report Abuse

no news lar. Cut off dividen date. after that next week will back to normal.

Posted by force > 2015-07-26 08:47 | Report Abuse

Many big boss out of this counter... y?

Posted by Icon8888 > 2015-07-26 09:43 | Report Abuse

their operation is 75% export and benefits from low Ringgit

However, they have some forex exposure

Some are loans, some are payables booked in on quarterly basis.

When currency moves from one level to a lower level, the previous quarter payables will get hit

Their underlying profit is strong, just distorted by forex losses. Optimum scenario is when currency stabilize, and remains low. That is when they stopped making losses on quarterly payables and yet enjoy fat margin

Not exactly a dead case yet. I did a quick calculation, the net effect should still be positive (in fact, very positive）. The more the RM depreciates, the stronger the operating profit, and it is more than sufficient to offset the forex loss.

Last quarter the weak RM boasted net profit to RM8 mil, but forex losses was RM4 mil. However, if the bulk of the forex loan losses had been provided and what was left was forex payables, next quarter forex loss could be lessen (hopefully)

However, no point for me to defense them, have to wait for coming quarter result.