Dolly_chai is coming here to play sifu but failed miserably in Evergreen. If u can't figure our or interpret the financials and reports right then u should not act like sifu lol
starperformer, it is how childish of you to trace my comments and retaliated here with your immature comments after you failed to convince the evergreen's investors at that forum.. grow up and be like a man... r u a master in interpretting financial reports? dun laugh die me... u sure you are better than me in reading financial reports? haha... get lost pls... grow up and dun do personal attack like a child..
who failed miserably in evergreen? i bought below 80sen and what is the price now? i am investing for 2017 & 2018 performance for evergreen... can't see it?
yeah... as what i mentioned above, the acquisition of DOSB is a smart move as it will give SIGNIFICANT RECURRING income to GESHEN... that is going to boost the EPS for 2017 onwards...
Alex, some ppl sell for locking in some profit.. that is normal... GEshen has gone up quite a bit these few weeks so that is expected. Same thing happens to Airasia too...
as what i mentioned earlier.. the acquisition of DOSB and the remaining 25% of Polyplas proved to be a successful move for GESHEN... you can see that both revenue and net profit has increased significantly compared to Q3 & Q4 2015... even if you compare with Q3 2016, the revenue and net profit has shown some slight improvement and the earnings are quite sustainable...
if u like a simplistic way of using PE valuation, assume 7-8sen EPS a quarter, it will be 28sen to 32sen EPS for a full year... and ppl like PE of 10, so i will do the same...
the target price will be around RM2.80 to RM3.20...
u can also do EV/EBIT and other valuation methods to determine the intrinsic value of share too... up to you...
Review of Group’s Results for the Quarter Ended 31 December 2016
The group achieved revenue of RM55.11 million for the quarter ended 31 December 2016 as compared to RM38.37 million reported in the corresponding quarter last year which represents an increase of 44%. The higher revenue was contributed from the newly acquired subsidiary as disclosed in Note A9 and business development efforts through increase in sales volume from certain existing customers and new customers. The Group has reported a significant increase in profit before taxation of RM7.76 million for the current period from RM2.72 million in the corresponding period last year. The substantial growth in profit before taxation was mainly due to higher revenue recorded and effective cost management.
The Management anticipates that the recent political and policy adjustments in major economies of the world will result in greater uncertainties in the overall operating environment of our business, including volatility in the foreign exchange rates. However, the recent announcement and implementation of the Financial Market Stabilisation Measures has resulted in more customer contracts being negotiated in Ringgit terms. The immediate impact of this policy has yet to be seen, but we anticipate that there would be much less volatility in the translation and conversion of foreign exchange to the Ringgit moving forward and this will result in less foreign exchange gain and/or loss. Over the longer term, we foresee that there may be increased cost pressures to our business, specifically imported wage-inflation and possibly increase in financing cost. To this end, the Management continues to focus on business development activities and is continuously trying to grow revenues from existing and new customers. The drive to continually increase our capabilities and capacities across all subsidiaries in the group will benefit the Group’s overall prospect and allow for the achievement of economies of scale. Having acquired land and buildings in our subsidiaries in Ge-Shen Plastic Sdn Bhd in Johor, Malaysia and Ge-Shen Vietnam Co. Ltd in Hai Phuong, Vietnam (which were both completed in 4Q2016), the Management is also focusing on construction and/or renovation of the said facilities and anticipate that upon completion of such facilities, selective CAPEX into new manufacturing capacities will be implemented to generate revenues.
On top of increasing Revenues, the Group is working towards a culture of embracing technology, including the implementation of better enterprise resource planning (ERP) and manufacturing execution system (MES). This will improve data capture, allow for better analytics and contribute to improve of overall efficiencies and productivity. Robotics and automation continues to be on the agenda to ensure that wage-inflation is mitigated. The Group is also set to allocating and rewarding its employees with the Employee Share Option Scheme (“ESOS”) which is designed to ensure that performing and contributing employees will be aligned and rewarded as the company continues to grow. While the implementation of an ESOS will have a certain cost or expense to the Group and dilution to existing shareholders, the Management and Board anticipates that with such alignment and reward, the benefit shall outweigh the associated cost.
a very long-winded prospect... haha.. but we can read from the lines that the group is looking into expansion (for new and existing customers).... good one...
To this end, the Management continues to focus on business development activities and is continuously trying to grow revenues from existing and new customers. The drive to continually increase our capabilities and capacities across all subsidiaries in the group will benefit the Group’s overall prospect and allow for the achievement of economies of scale.
***Having acquired land and buildings in our subsidiaries in Ge-Shen Plastic Sdn Bhd in Johor, Malaysia and Ge-Shen Vietnam Co. Ltd in Hai Phuong, Vietnam (which were both completed in 4Q2016),*** the Management is also focusing on construction and/or renovation of the said facilities and anticipate that upon completion of such facilities, ***selective CAPEX into new manufacturing capacities will be implemented to generate revenues.***
On top of increasing Revenues, the Group is working towards a culture of embracing technology, including ***the implementation of better enterprise resource planning (ERP) and manufacturing execution system (MES).*** This will improve data capture, allow for better analytics and contribute to improve of overall efficiency and productivity. ***Robotics and automation continues to be on the agenda to ensure that wage-inflation is mitigated.***
The Group is also set to allocating and rewarding its employees with the Employee Share Option Scheme (“ESOS”) which is designed to ensure that performing and contributing employees will be aligned and rewarded as the company continues to grow. While the implementation of an ESOS will have a certain cost or expense to the Group and dilution to existing shareholders, the Management and Board anticipates that with such alignment and reward, the benefit shall outweigh the associated cost.
Overall this is very good company to reward their staff with ESOS. Employee sure working hard to keep the company in profitable, share price sure go up to north!
The only shortcoming is "There was no dividend declared or proposed by the company for the current quarter ended 31 December 2016. ". Hopefully, they are going to declare dividend in coming quarter and the share price is boost up to north!
Since managing director Chan Choong Kong (Appointed on 23 April 2015) , the revenue and profit for the company jump up more than 100%, since 2015 to 2016.
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....
starperformer
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Posted by starperformer > 2016-12-16 16:35 | Report Abuse
Dolly_chai is coming here to play sifu but failed miserably in Evergreen. If u can't figure our or interpret the financials and reports right then u should not act like sifu lol