All the sifu out there... Wonder why there are so many Additional Listing? Are they not diluting the share price? I was about to add this counter to become part of the portfolio. Need to reassure before pushing the green button! Thx.
Looking at dividen pay out and company future expanson and growth , hovid is going to rise for long term trend , lot of institution s jump in for dividen pay out ki ki
As expected, revenue/PAT levels are the same as before, actually it is even worst. And the nerve to say that it is because of GST when your main source of revenue is exports. Oh, did anyone forget that the USD is up 30%+ YOY? So much for stronger USD dollar. How about the EUR?
COS are actually higher because of the USD, plus the fact that there had not been any new contracts. Hear any prospecting or tenders going on? What is the utilisation of the plant?
I bet no one is asking, maybe you all have to wait for analyst to do plant visits and ask right questions.
I can tell Hovid is utilising all is cash to make it worthwhile to stay. Seems like looking at forecast cashflows everyday is a norm. Well, at the expense of future growth.
Of course, I am waiting for some cut and paste macha to explain what went wrong and how it should be viewed.
As expected, like clockwork. No originality, nor thought nor expression. I would have thought a normalised p&l without the JV be done to show how dire the situation was.
Hey, did anyone mention sanofi's contract is expiring January 2016? Only 5 months to go. So, RM10mil to RM13mil p.a. not going to be filled? No option to extend? No new contracts?
Wow, seems like a strong USD/EUR is not making Hovid's products cheap for foreigners. No one's buying or importing like tomorrow. Oh, well.
If you normalise Hovid (i.e. remove carotech and Indian JV out of the equation) and adjust for USD/EUR, you will find that Hovid's business is actually down 45%. Yes, 45% before Sanofi's contract ends, from Top line to Bottom line. 45% less shipments, 45% less boxes of products. The factory utilisation is at 50% capacity.
Now imagine going to mid-valley and half of it is open for business and half of it is in darkness with no electrity. That is Hovid for you today. I would not be surprised if Hovid today is no better than Hovid in 2008!
And to my disbelief, what are the auditors doing? FRS strictly requires the review of your assets, in particular, the DCF and market valuation (whichever is the higher) of the plant and machinery. If it is not backed by any future sales, then those plant and machinery are as good as scrap. I fear the balance sheets is not really worth its salt.
Worst dividend distribution in history. Not even 1 sen, which was the norm. Definately for those who would hold Hovid to the grave. That is long-term for you.
Look, if they set investor expectations too high buy booking too much future revenue now as top line earnings, then they only have themselves to blame when the stock tumbles down the line...KWAP is supporting for now , but for how long if no dividends are forthcoming. we all saw what happened with EverSendai.
Kwap is in midst of reviewing its investments. I heard the audit is over. They will liqudate Hovid and others if they are required to support the bond market. The question is when.
The Generics drugs business is Brutal. There are too many players, and these guys can have their arms twisted by clients becuase of it. U dun give me, I go somewhere else. and its not like these guys are supplying medicinal amphetamines, opiates or benzodiazepines. Or even medical devices, which have much better margins. Nor have they branched out and developed a line of polular supplements and whey protein like GNC.
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Dericcheah
8 posts
Posted by Dericcheah > 2015-08-22 04:17 | Report Abuse
All the sifu out there... Wonder why there are so many Additional Listing? Are they not diluting the share price? I was about to add this counter to become part of the portfolio. Need to reassure before pushing the green button! Thx.