IF YOU see the announcement date for Quarter REPORT. when it was good result, it will announced early abit, i.e. 15.02.2016; 19.05.2016 & 12.08.2016. However, when it was bad result, it almost announced at last minute, that is not a good practice. this time the quarter report still last minute - feel very no confident to it.
Still can see some positive side. PVC division PBT margin is 20%, indeed a good performance. But solar division remain loss due to bad industry at the moment. But ROE dropped indeed a trigger alarm, the management must bring solar business into right track to ensure sustainable profit for the rest of FY2017. Aware that TS earned sales of solar energy amounted to RM1.6 million at this quarter, maybe it could be another source of income to supply excessive solar energy to another parties.
Sales in PVC section increase but profit losing in Solar section.
Inventories increase...means 1) stock cannot sell out or 2) purchase more stock and keep it for in coming business order
Receivable decrease..means 1) payment still due from customer and not received yet in this quarter report or 2) there is no much sales in this quarter
Payable Increase..means 1) business order is increasing but this quarter need make payment to supplier and profit not earn in this quarters. So next quarter is better? or 2) Time to pay to supplier after some terms and profit / sales not up to mark in this quarter?
all segment improve show improvement but cannot cover the lost in solar.. basically have to see when will the global solar market recover. downside risk if quite minimal if enter now...
ya, more and more china solar companies come to Malaysia and use Malaysia as a stepping stone to export Solar to Europe and US. The price competition will be more and more tough in the future. This is the major solar industrial consolidation. Perhaps also some reason from the United Nation and government to make the solar cheap so that to switch the conventional energy to clean energy.
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....
shortinvestor77
5,487 posts
Posted by shortinvestor77 > 2017-05-25 21:41 | Report Abuse
Wait and see.