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
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....
shpg22
2,984 posts
Posted by shpg22 > 2018-03-29 16:43 | Report Abuse
Downgraded to 0.50 at forward P/E of 10X. Deteriorating outlook, next few quarters going to be baddd. Now 1.00, still can cabut.