It seems to me that TGuan coming QR will be bad. Two probable reasons: delay in reporting; previous year 25th Aug already declared results in order for insiders to disposed off their holdings. Of course, the second reason is the downtrend share price prior to its QR.
the topline growth in the first 2 quarters is ok. the bottomline affected by the strong MYR in the first 2 quarters and high resin prices which should get better by coming quarters. Anyones knows if they are successful with the JV with the chinese plastic packaging materials producers in the northern region?
i think it wont drop much further. tguan quarter results priced in earlier already, and the results not too bad like other counters which reported losses. Topline growing, just the profit margins affected by the strong RM in first half of 2018 and the initial higher operating cost for the F&B expansion.
USD already strengthened in 2H2018. The US feud with China and Mexico will benefit Tguan. Japan Olympics in 2020 will increase demand for PVC food wrap. Tguan PE already cheap compared to peers. And they are on track to become RM1bil turnover company, I will buy on dips.
nicky, it up with no support also. I notice that since two months ago, it up with very small volume, seems like someone push it up slowly by slowly. Now it drop with small volume also not suprising.
Other than the bearish market, TGuan operations and results have deteriorated over the past two quarters, more decline will come if this 3rd quarter is bad. Be prepared to see TGuan dropping below RM2/- unless 3rd results show improvement.
Not an easy task which always pass through the costs to the customers. I strongly believe their margin is further squeeze in Q3. Other than that, the food industry will have accelerate the depreciation due to written off.
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....
wakarimas
1,043 posts
Posted by wakarimas > 2018-08-24 18:48 | Report Abuse
down ahhaha