thanks.ckwan. ....still not satisfy with the highest revenue in the record financial quarter for OKA but declare so little profit. why ? ACCOUNTING manipulation ? investor victimise ?
Current Year Prospects Based on the current economic outlook in Malaysia, the construction industry is expected to remain progressive. However, uncertainty of uncontrollable factors such as raw materials costs, fuel and energy costs including shortage of manpower in the manufacturing sector are expected to affect the Group’s turnover and profit. The Group’s continuous effort to diversify its products, introduce products differentiation and to improve on the existing products together with the implementation of cost savings measures will help to enhance its overall competitiveness in the industry. In addition, the Group is practicing more aggressive strategy to capture bigger market share. Hence, barring any unforeseen circumstances, the Group is optimistic that it will remain profitable for the financial year ending 31 March 2016.
look at revenue...rm43million is the highest quarter.I believe net profit low is due to accounting adjustment to pay lesser for company tax purpose. Next quarter is 1st quarter for 2016 may see the financial result shoot up.
If u watch it slowly and scepticism , the big ''Profits'' for us in OKA has over ... the show is almost come to the ending point when analyst and media start cover about this counter. But yet the Dividend yield is still ''acceptable'' as Ckwan mentioned.
Mid dec, i had sold 50% due to reach my cut loss point. If same scenario come again, i will take same action. This is my principal and strategy of my investment. Lose a combat doesn't mean lose the war.
I am stuck at high price, but I will hold for the 4% DY. I believe fundamental still intact, just they sold lower margin products in Q4, and coupled with the ESOS expenses. Shall wait one more quarter and see.
The market is over-reacting over 1 quarter of dismal results... the company has a good track record of positive free cashflows. Its cashflow yield (free cash flow/market cap) is still impressive at 10% and it will be able to sustain the dividend payments
From the Chairman's Statement in 2014 Annual Report:
Prospects The Board expects year 2015 to be another challenging year due to the uncertainties in raw material pricing and the effect of the implementation of GST in 2015. In view of these, the Group will continue to focus on its core business with further emphasis on productivity, efciency and cost saving measures to enhance its protability. In view of stiff competition in the market, the Group is increasing its production capacity to diversify its products, introduce products differentiation, improve on the existing products and reduce the delivery lead time in order to better service our customers. In addition, further efforts have been made to maximise value from our current operation through the continuous development of new and innovative products.
Furthermore, the Group will plan for improving the use of factory floor space to increase production volume and improve delivery, which will increase in revenue. Therefore, the Group is expecting sales will continuously improve and contribute better results to the Group in future. As a result, the Board is fairly optimistic that the Group will continue to grow for the financial year ending 31 March 2015.
Anyone know why the profits slumped? OKA has succeeded 10 quarters out of 12 quarters to increase its profits. Unfortunately this quarter is 1 out of the 2. I looked at the report. It does not say much, my guess is directors fees. Anyone know more?
The real issue for oka goes back to fundamental business. Profit slumped this quarter due to revenue contributed products are with lower margin. The products might be facing competition or merely Oka had not done enough efforts. So it's time oka prove us with doing their part on efficiency and productivity to face these challenges, and we shall wait until then.
To expect profit to go up linearly every quarter may not be realistic. But such is the market's expectation and that is what create the volatility in the share price.
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....
88luckybull
396 posts
Posted by 88luckybull > 2015-05-29 21:57 | Report Abuse
why why..highest revenue in the quarter declare low profit ??