Guys, really nobody saw this?! Total debt drops from RM 58.5 million to RM 7 million! 8 times reduction of debt during a difficult time! I think management is still doing good job on this. This will ensure Tek Seng to go through this with very few liabilities burden.
Positive things about TS...1) revenue up highest compare to last 3 qtrs 2)Debt drops tremendously. 3)back to profit after recorded 2 consecutive losses 4)continue paying dividend. For me TS mgmnt certaintly doing the good job despite challenging environment.will keep it & any further drop is a buying opportunity.
Thanks ipodkaki, debt to equity ratio reduced from preceding quarter of 0.17 reduced to this quarter of 0.02. And also inventories balances reduced from rm81m (1Q17) to RM54m (2Q17), that why sales can improve from rm63m (1Q17) to RM95m (2Q17).
But do note that PBT including rm5.19 million gain on disposal of PPE and RM1.3 million compensation from customer. If excluding these, TS is still at making loss position.
2nd half year still a big challenging period for TS.
Why Debt from RM58.5 Million to RM7 Million, but in Cash Flow "Repayment of Term Loan" so significant low?, feel like not match. anyone may clarify me? Thank in advance
Dropped Term Loan linked to Dropped in Fixed asset? If Yes, It should should in Cash Flow that Sales of Fixed Assets, and in Finance Activities show "Repayment of Term Loan" around RM51.5M (RM58.5 - RM7M). Sorry, cant get the common sense.
Hi Chong Lung, pls refer cash flow statement: 1. Inventories reduced by 21,316 2. Proceed loan - 9,423 minus repayment of 14,800 3. Disposal of PPE with the gain of 5,206
TS has to think how to maximise cost efficiency and optimization since MV of solar cell is so low and overcapacity currently. Otherwise how to turn operating loss to profit for solar division in 2H17?
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....
Tuan Lim
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Posted by Tuan Lim > 2017-08-11 16:26 | Report Abuse
Buy...buy.....good new