good company, good track record and in a growing industry. now revenue is relatively flat as they focus on selling higher margin products, if they can grow both volume and margins then this stock will really explode
Jay, this stock my sifu buy before. Not sure if he still buy. But last time I did not follow him as I don't think the industry growing. Very reliance on projects etc also in cOuntry economy. Can enlighten
from my limited understanding of the industry, I think precast concrete is the future. unlike simply supplying cement or building materials, this is a higher skilled industry and can save time, costs and need for labour (if done right and in reasonable scale). its fate is closely tied with construction and property industries. construction is still booming, offsetting the sleeping property industry. and precast concrete industry should only grow as more construction and property players adopt the technology
1. Why OKA profit margin increase? Demand > Supply. So. OKA focus on high margin product.(Strength) - Refer Q4 2017 2. Why Demand>Supply? Pssible due to labour shortage. Company like Homeriz, Chinwell facing same issue as well(Risk).What-If OKA solve this issue? Revenue? Bottom-line? 3. Prasarana on track to complete award of LRT3 main packages by July(Gov project)-somehow benefit OKA.Eg:T-Beam, M-beam.(Opportunity) 4. In term of Dividend 5.5 sen FYE 2017 10% increase, indirect mean OKA 10% growth.(Growth) 5. Debt free company with cash 49 mil in equivalent to 30 sen per share(49/163). Use for expansion or dividend payout. (Strong cash flow)
How OKA utilize the cash? Focus on develop new product? Buy machine? New plant (less possibility)? More dividend payout? This is most investors interested.
Hahaha 1412 I like this question "how utilize the cash". I'm sure you able to discover it if your hold this counter for another 3 to 5 year. I think it is hardly to see any expansion in short term.
@wan7075 I'm just sharing, limited supply due to labor issue, demand as usual= demand>supply.
@kampachi Mr Ong and the family own more than 55% of total share, 200k of share is inmaterial to them. Mayb the son or daugther need some cash to buy Mr Ong gift for father day or possible they just realize 200k share at 1.73 and resubscribe it back via ESOS at myr 1.13 possible. Be confident in the company you are invest in.
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....
ginvin
206 posts
Posted by ginvin > 2017-05-26 17:21 | Report Abuse
result superb! strong fundamental