For the 3 months ended 30 June 2019, the Group recorded a higher revenue of RM104.15 million as compared to RM82.067 million in
the same corresponding quarter ended 30 June 2018. The higher revenue is mainly due increase in the sales volume from 2,833
tonnes to 4,315 tonnes despite an 8% drop in the average price level.
The Group recorded higher gross profit of RM1.895 million as compared to RM0.411 million in the same corresponding quarter ended
30 June 2018. This was mainly due to an increase in gross margin from 0.5% to 2%
The joint venture with Justin Wong Chee Feng, Wong Ah Piaw and Latitude Technology Sdn Bhd via Cyprium Wire Technology Sdn
Bhd, that was announced in April 2019 marks the Group’s first foray into the cable industry, a downstream venture in the value chain.
It will use innovative electron beam irradiation technology and it is part of the Company’s strategy to capitalise on new and viable
opportunities complementing its existing business to drive growth. This joint venture is operational as of August 2019 and is expected
to reach current capacity by second quarter of financial year ended 30 June 2020.
This stock is a growth stock . As a trader , in order to make money you need to buy low . Tawin wa at ...0.045 ..to me is a very good time to collect with with positive risk to reward ratio . In stocks , appreciate low price and you will appreciate higher price more .
PROSPECT REVIEW The prospects for Ta Win are very positive, especially considering the new strategic direction mentioned above (see “Strategic Review”).
TWC, one of our newly established businesses, will double the Group’s revenue once production is ramped up in the coming quarters. Due to its use of recycled copper, which is sold at a discount to the London Metals Exchange price despite its comparable quality and usability, TWC’s profitability is expected to have a positive impact on the overall Group’s margins.
Cyprium, our second newly established business, will have a substantial positive impact on the Group’s profitability due to its margins being considerably higher than our legacy business. At the time of this report’s publishing, the production lines have just been set up and commissioned. We are now entering the initial stage of ramping up production, which primarily involves hiring and training staff. The market demand for Cyprium’s products is very strong due to the uniqueness of our technology in Malaysia, hence we are confident that we will capture the local market swiftly, and we expect to require expansion of capacity in the coming years.
As for our legacy business TWI, we expect the replacement of our old equipment with new Industry 4.0 equipment to have a material impact on profitability due to production costs savings
On a strategic level, we have made it a priority to transform the company into a modern vertically integrated copper manufacturing business with an international focus. We aim to augment the value we create along our value chain by venturing downstream and upstream, while discontinuing any business segments that do not present favourable prospects. To that end, we have discontinued the enamelled wire business, which targeted a declining industry and was dragging down our performance due to lack of scale. Instead, two new strategic businesses have been launched through joint ventures to set up new production facilities in our existing manufacturing plant in Alor Gajah Industrial Estate, Melaka. Through these businesses we are following our new strategy of vertical integration, downstream by entering the high-end-cable business, as well as upstream by introducing a new production input – recycled copper. These businesses are expected to contribute significantly to the top and bottom lines of TWHB.
The core business of Ta Win since its inception has been Ta Win Industries (M) Sdn. Bhd. (“TWI”), which is involved in the manufacturing and sales of high quality copper wires and rods of various diameters. Its capacity is 1,000 metric tonnes per month and its utilization rate rarely drops below 90%. Around 60% of TWI’s revenue is generated locally in the Malaysian market, supplemented by exporting to India, China, and Southeast Asia. Within these geographic markets, TWI supplies mostly to the cable and electronics manufacturing industries.
As for the two new businesses recently launched, the first is Ta Win Copper Sdn. Bhd. (“TWC”), of which Ta Win owns 65%. TWC is a joint venture with a Chinese copper manufacturer, which moved one of its production lines to our manufacturing plant in Alor Gajah. The trigger for this business setup was the Chinese government’s ban on the importation of scrap into China. By setting up the operation in Malaysia, we are able to source recycled and refined copper scrap locally, process it into copper rods, and export to our joint venture partner’s existing market in China. We have secured an offtake agreement with our partner for the entire 1,000 tonne monthly production capacity of this business, removing market risk.
The second business launched this year is Cyprium Wire Technology Sdn. Bhd. (“Cyprium”), of which Ta Win owns 80%. Cyprium is a joint venture with a local party. Our partners in this business are highly experienced veterans of the Malaysian cable industry, with unique intellectual property enabling them to design state-of-the-art equipment, using which they can produce high-margin diverse cable products. Together with our partners and our equipment suppliers we have already designed, built, installed, and commissioned five Industry 4.0 production lines, which can produce cables for an array of high growth industries including solar, oil & gas, electronics, and automotive.
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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....
robert168
558 posts
Posted by robert168 > 2019-09-19 13:59 | Report Abuse
something good I know was new management, new business direction.. why not !