Good investment stock. Revenue will continue to climb with new factory in Mexico started operating. Remember that the cost of sugar, its raw material in Mexico is much lower than in Malaysia and they also having cheaper transportation cost.
Profit should improve. Slowly but surely moving higher with better prospects.
Hi Huat1,exaxtly , one of the major issues JOHOTIN faced right now is cost of raw material so thier profit margin is low.Hope their can improve further
a) Current Year Quarter compared with Preceding Year Corresponding Quarter
The Group achieved a revenue of RM143.43 million, which is the highest revenue per quarter ever recorded and profit before tax of RM20.16 million for the third quarter as compared to preceding year corresponding quarter of RM124.44 million and profit before tax of RM16.51 million respectively. The revenue increased by RM18.99 million and the profit before tax increased by RM3.65 million respectively as compared to the third quarter of the preceding year.
For the tin manufacturing segment, revenue increased by RM6.86 million from RM28.73 million to RM35.59 million mainly due to higher sales in the printing of tinplates services. Profit before tax increased by RM2.03 million from RM4.08 million in the preceding year corresponding quarter to RM6.11 million.
This is mainly due to higher sales in the printing of tinplates services in the current quarter.
For the F&B segment, revenue increased by RM12.14 million from RM95.71 million to RM107.85 million mainly due to higher sales from dairy products. The profit before tax increased by RM2.26 million from RM12.64 million to RM14.90 million for the current quarter, mainly due to higher sales in the current quarter as compared to the preceding year corresponding quarter.
b) Current Year-To-Date compared with Preceding Year-To-Date
The Group has recorded a revenue of RM426.02 million and profit before tax of RM45.17 million for the 9 months’ ended 30 September 2019 as compared to preceding year-to-date of RM343.98 million and RM30.19 million respectively. The Group’s revenue increased by RM82.04 million and the profit before tax increased by RM14.98 million respectively as compared to preceding year-to-date.
For the tin manufacturing segment, revenue increased by RM17.42 million from RM83.72 million to RM101.14 million mainly due to higher sales in the printing of tinplates services. Profit before tax decreased by RM0.71 million from RM11.36 million to RM10.65 million. This is mainly due to higher material costs and relocation costs incurred by KTCF which is completed in the second quarter of this year.
For the F&B segment, revenue increased by RM64.62 million from RM260.26 million to RM324.88 million mainly due to higher sales from dairy products. The profit before tax increased by RM16.13 million from RM20.00 million to RM36.13 million, mainly due to higher sales and higher production efficiency in the current year under review as compared to the preceding year-to-date.
B2. Variation of Results against Preceding Quarter
For the current quarter under review, the Group’s profits before tax increased by RM8.13 million to RM20.16 million as compared to profit before tax of RM12.03 million in the preceding quarter ended 30 June 2019.
a) Tin Manufacturing Industry
Profit before tax increased by RM3.07 million from RM3.04 million to RM6.11 million mainly due to higher sales in the printing of tinplates services.
b) F&B Industry
Profit before tax increased by RM5.48 million from RM9.42 million in the previous quarter as compared to the current quarter’s profit before tax of RM14.90 million, mainly due to higher production cost from water supply disruption in the current quarter under review.
a) Tin Manufacturing Industry Tin manufacturing industry will remain challenging due to an increasingly competitive market. Raw material prices are currently less volatile and this will help to maintain the stability in the market in the near future.
b) F&B Industry Demand is expected to remain strong although we foresee a very competitive market. This segment will continue to be profitable although prices of dairy ingredients have been increasing and the uncertainties in global economies.
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....
sapurakencana
1,144 posts
Posted by sapurakencana > 2019-11-13 21:53 | Report Abuse
Will you keep even drop back to RM1.35 due to uncertainty in trade war?