To me, as long it can sustain demand , and once the new factory finishes at March 16, if KAWAN able to pushes demand to new high, it will be another good growth story to realize.
North America n Oceania revenue decrease, partly compensate by revenue increase in Malaysia.... Once the new factory in startup, they will be able to rent out part of the freezer as recurringincome.... look forward for next qtr result.
■ FY15 net profit in line with market expectations but below ours at 89% of our forecast, mainly due to unexpected 4Q15 RM0.9m forex loss.
■ 2015 revenue growth mainly due to the stronger US$ as production was already running at full capacity.
■ New plant in Pulau Indah able to triple total production capacity. Management targets growth in the ready-to-eat (RTE) market.
■ New plant expected to be ready by mid-2016; plant completion was delayed by 2-3 months due to delay by the contractors.
■ Maintain Add and target price.4.48
FY15 net profit up 54% yoy
FY15 revenue was up 11% yoy, driven by stronger export sales, mainly in US$. FY15 net profit growth was up 54.6%, mainly due to greater economies of scale and forex gains. No final DPS was declared, in line with our expectations. Production growth was generally flat – we estimate only 3-4% growth – as its existing factories were already running at full capacity. In fact, we believe the company had to turn down new orders as it could not fulfil the orders. Turning down new orders is a good problem to have.
Based on the latest quater report, kawan already has RM63 million in hand, waiting to get extra RM46 million (money from remaining warrant that not yet convert). Kawan is expected to has RM109 million in hand after July. With 109 million, kawan can aggresively to expand and to buy the most advance food processing equipment to produce new kind of food to meet the demand of growing of the population from whole the world.
@CFTrader, you are right. only phone number available... I dont think their FB page will respond to these corporate topics, it meant for customer service than IR...
Just left 39.719 million wa to be convert that need RM36 million. The boss, Mr Gan already spent his entire life to grow his company through passing hard time and will not let their wa to be expired like that. The boss is work hard to improve company's cash in hand position. 100million is needed for capex soon.
Although kawan new factory is just built on land of 15 acres only, looks like very small. But bear in mind, dlady is just using two piece land which is total 10 acres only ,one land is for factory(8 acre) which is built on year 1960 and a warehouse land (2 acre) is built on year 1989. It is unbelieveble, that dlady is able to grow 45 multiple times from year 1987 to now. I believe kawan is going to repeat the success of dlady that had done in the past , so i has put part of my savings to invest in Kawan.
2015 annual report: As part of our ongoing expansion plans, the construction of RM150 million Pulau Indah plant has commenced and is targeted to be in operation by second half of 2016. Progress is moving positively in the right direction although slight delays have been experienced. This new plant with approximately built up area of 30,000 sq.meters, equipped with state-of-art facilities like Automated Storage & Retrieval System (ASRS) and innovative green technology that promote significant gain in water, energy and environmental conservation, when in operation shall allow us to consolidate all our existing operations under one roof; thus increasing our capacities while at the same time enhancing efficiencies and control apart from catering to the needs arising from the growth of business.
2015 marked a great year for the Group as sales revenue continued to grow positively to surpass the RM165 million mark. This achievement would not have been possible if not for the immense support, input and the relentless hard work rendered by the Board of Directors, the Management team and the entire staff force of the Group. I value very much the perseverance, diligence, invaluable contribution and the loyalty of each and every colleague of mine. I hope and I am sure that this team spirit will continue to be built upon in the coming years so that the Group’s achievements can be brought to even greater heights.
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....
funda
484 posts
Posted by funda > 2016-02-29 20:37 | Report Abuse
Seem like kawan is highly influence by forex volatility...