The action that i take mainly to alert the new investor do not fall into this trap & to prevent management repeat same mistake/ no excuse to repeat same mistake unless they can clarify their actual reasonable reason to convince us. In the most recent 5 years, Johotin has spent total CAPEX of RM82mil for expansion.
Which is more than sum total of net profit for 2015 + 2016 + 2017 = RM79mil.
The business owner will only spent such a big amount of CAPEX if there is potential to grow and the company has the intention to grow.
As at end of Dec 2017, the new plant still haven't started to contribute to the company revenue and bottom line as per confirmation with the investor relation department.
Refer to Master ColdEyes book in 2018, normally the result from expansion of Johotin could only be shown after 1-2 years from the completion of the expansion. Johotin is one of the 4 companies that ColdEyes identified as growth company that he mentioned in his new book.
The 3rd QR 2017 also mentioned that Able Diaries Marketing started its operation since 3rd quarter 2017 therefore more distribution cost needed for start up.
Sapurakencana :
As at end of Dec 2017, the new plant still haven't started to contribute to the company revenue and bottom line as per confirmation with the investor relation department.
CY1214,if you the boss of this company,do you willing to wait 1 more year to start contribute to company after spend 82mil for the past 5 years.rediculous 01/03/2018 12:48
if this issue not solve asap,i'm not afraid to said that this company may be incurred loss for the coming quarter.. Dont forget high material cost & doubtful debt issue still not settle. I rather down grade this counter to 90cent before any improvement 01/03/2018 12:55 05/03/2018 14:15 14/03/2018 18:59
when somebody respond to my article that i repead mean i reach my target to attract more people to aware the weakness of this company & to prevent management repeat same mistake/ no excuse to repeat same mistake unless they can clarify their actual reasonable reason to convince us.
please repeated highlight the same issue ,so that may be managment wil notice one day. I wrote this statement to prevent management repeat the same mistake /no excuse for the same mistake.
Profit decreased by RM4.14 million from RM3.8 million in the previous quarter as compared to the current quarter’s loss before tax of RM0.34 million, mainly due to higher material and operating costs in the current quarter under review
-From the above statement, i agree there is a possibility of high material cost for the quarter under review. But why operating cost also increase when revenue decrease / production decrease . From my understanding " for example if company engage 100 people for production line,monthly cost for manpower should be fixed .Electrical & water incurred in production should be reduce when production decrease. Anybody who know this issue please highlight.
If no answer given,i wil treat this as a wastage in production.This is bad practice in manufacturing line.
please repeated highlight the same issue ,so that may be managment wil notice one day.
sapurakencana Another main reason is the reversal of RM3.01 million that was recognised in the first quarter of the current year as gain on disposal of machinery. The equipment supplier decided that they do not need the equipment and instead of a trade-in, they gave us a discount of RM3.01 million. This also another un acceptable reason-did company engage unqualify engineer to make the wrong dicision to purchase the wrong machinery,until the company need to back charge under this quarter. Doubtful debt appear 2 time in current financial year. If this 2 issue continue happen,is unfair to the long term investor. Management ,pls do the necessary step (SOP) to protect the shareholder interest. Pls dont be silent,pls show the result to convience us. 28/02/2018 20:41 02/03/2018 09:33
Be patient and wait for Next QR. If bad, wait for next next QR. If still bad, keep this stock for your son. If still cannot perform, keep it for your grandson.
desmondcsh Be patient and wait for Next QR. If bad, wait for next next QR. If still bad, keep this stock for your son. If still cannot perform, keep it for your grandson. 26/03/2018 17:28
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....
amzarb44
528 posts
Posted by amzarb44 > 2018-03-16 14:48 | Report Abuse
Shpg22 what do you mean?