@Fabien Extraordinaire, SCGM local contribution is 61%, which mean strong RM will help during purchase resin. The problem is oil price (resin) continue increase and start-up cost of new plants are the problems.
I predict the coming quarter earnings would be a disappointment. Mainly due to rising raw material costs, expect profit margin to erode further. Hopefully they can maintain above 15% la.
Buy this for its future prospect guys, rising demand + expansion plan = skyrocket. Cost concern will be adjusted by increasing the sales price, and the resin price will be stabilised. So do not worry so much, management has mentioned this before.
honestly, i think management will absorb the resin cost not to increase the selling price. They want to expand customer base, they want to get more market share, so that will be able to have enough customer for the additional capacity for coming new factory. That's what i feel the management doing now. So will expect margin drop in coming quarterly result until the new factory start production
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....
MGrowth
125 posts
Posted by MGrowth > 2018-03-22 11:15 | Report Abuse
U see ... this counter keep on dropping .... no bottom support price .... something wrong for this company