If just look at GP margin, Johotin performance is very consistent even thru forex fluctuations, high material costs etc. Indeed 2nd quarter GP margin of 16.76% is better than 1Q18 (13.54%) and 2Q17 (14.78%). But for bottom line, it varies due to forex gain or loss and higher operating costs. Can expect 3Q result is better than 2Q due to tax holidays effect, B40 consumers buy more dairy products and milk powder etc will boost higher turnover.
If not mistaken, Mexico JV biz shall start to contribute revenue and profit in the 2nd year of FY2018. It might be part of reason why operating cost is higher due to initial and setup cost.
Targetinvest my jaks is from 1.20 to 0.83. I am quite happy with the performance. Buying more to average down. Today closing. Average cost is 0.88. Very cheap.
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....
Patrick13
1,971 posts
Posted by Patrick13 > 2018-08-30 07:55 | Report Abuse
If just look at GP margin, Johotin performance is very consistent even thru forex fluctuations, high material costs etc. Indeed 2nd quarter GP margin of 16.76% is better than 1Q18 (13.54%) and 2Q17 (14.78%). But for bottom line, it varies due to forex gain or loss and higher operating costs. Can expect 3Q result is better than 2Q due to tax holidays effect, B40 consumers buy more dairy products and milk powder etc will boost higher turnover.
If not mistaken, Mexico JV biz shall start to contribute revenue and profit in the 2nd year of FY2018. It might be part of reason why operating cost is higher due to initial and setup cost.