Their management is smart 1. Should sapu a lot of cooking oil before Nov 1.
Posted by beso > Nov 16, 2016 10:47 AM | Report Abuse no more subsidized cooking oil with large amount of oil needed in the production cost will shot up like never before sure drop later
Although approx 65% of revenue is from exports, almost 100% of raw material does not originate from Malaysia, which may explain why although total sales went up, cost of sales went up even higher, resulting in lower gross margin.
Whilst raw material can be sourced locally, most are either imported or made from imported material eg, flour is made from imported wheat, whereas potato is imported. There is no details in the cost of sales, but what is definite is gross profit as a % has went down. QR 30.09.16 Qtr/Qtr : Sales up RM3,950K (7.04%), Cost of sales up RM5922K(14.01%) and YTD sales up RM10,633K (8.62%) but COS up RM14,848K (17.77%). Presumably with minimum wages law also affected their factory wages.
OFI is an interesting counter worth for accumulating while not many are interested at this price level. this is another growth company with near term catalyst.
enououbee. I don't know any link but you can know indirectly by looking at its plant & machinery acquired worth almost RM 40 million for the last 12 months.
dragonfruit. Overvalued or undervalued is hard to give an exact answer in terms of PER, NTA... You may have to make a comparison with its peers within the industry and the future prospects of the company.
Dragon. You can compare with Apollo and Hupseng and their prospect for the next 12 months. If you like confectionery business then try to get one suit your own investing preference criteria. One may prefer EPS grow. Another one may go for higher DY and Nil borrowing...
Some apply Enterprise Value to make an evaluation so you need to take into account cash and bank borrowing. It depends what metric you use. OFI, HupSeng and Apollo are traded at about PER 20x. OFI near term expansion could be the catalyst for re-rating. Apollo and HupSeng may take longer time. Read their AR if you want to know their stories.
I had read for the last 3 quarter report. I am excited after i had read for the reports.The latest quater had stated the Group is currently in the midst of machinery acquisitions for some expansion projects for new product lines. Ofi had spent RM6.116 m for quarter 1,RM15.201M for quater 2 and increase to RM21.545 m for quarter 3.
I has started my initial investment to buy ofi at RM1.57 today.I am looking to add more OFI in the future. I will treat OFI as one company of my porffolio for my long term investment.Hope the OFI can enhance our shareholders value.Although it is just 376.8m in market capital for the price of RM1.57. I am putting my faith that It is a gem that got potential to become giant consumer company of becoming 1 billion market capital. My favourite counter, Kawan had made it, i believe OFI also can make it.
The product range is decent and aimed at the right segment, middleclass suburban demography. With new expansion and more product, definitely believe something can happen here.
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Posted by henry9889 > 2016-11-11 12:26 | Report Abuse
which countries they exported to? what is the currency used?