It says here bat will source the supplies from other regional factories, which could be Singapore and Australia, where tienwah is also doing business for bat there. So the volume will only switch from Malaysia to other factories, instead of diminishing.
The announcement may indicate that Tien Wah might have already gotten wind of BAT's shut-down plan, and that the company already has an alternative plan in place to brace for the move. In fact, cash-rich Tien Wah last month proposed to undertake a renounce-able rights issue of 48.25 million new shares at an issue price of RM1 per rights share on the basis of one for every two existing shares. The rationale for the cash call was to expand production facilities in Indonesia and the Middle East.
TWP would have to compete with other local players when BAT is operating from other countries. Besides that, the expansion to Indonesia and MEast has increased its risk profile as it is never easy to operate in other people's territory.
However, an investment fund manager noted that BAT’s move to cease production in Malaysia may not be that detrimental to Tien Wah, given that the exclusive supply agreement between the two for the supply of printing and packaging material lasts until 2019. Interestingly, Tien Wah announced to Bursa Malaysia in August last year that it had tied up with a Singapore-listed property developer, Lum Chang Holdings Ltd, to redevelop the parcel of land where its office and production plant are currently located on. Both parties have signed a memorandum of understanding on the joint development. The announcement may indicate that Tien Wah might have already gotten wind of BAT’s shutdown plan, and that the company already has an alternative plan in place to brace for the move. In fact, cash-rich Tien Wah last month proposed to undertake a renounceable rights issue of 48.25 million new shares at an issue price of RM1 per rights share on the basis of one for every two existing shares. The rationale for the cash call was to expand production facilities in Indonesia and the Middle East.
I dont believe TWP not aware of BAT move b4 hand. Will buy from panic investors but price not low enough, maybe still a lot of shareholders not yet read the news? Waiting for afternoon
Uncertainty for tien wah loh...!! Bcos BAT msia contribute more than 80% of Tienwah revenue....with this changes....there will be a big setback mah...!!
"However, an investment fund manager noted that BAT’s move to cease production in Malaysia may not be that detrimental to Tien Wah, given that the exclusive supply agreement between the two for the supply of printing and packaging material lasts until 2019.
As you can see, the agreement last until 2019, how if BAT refuses to renew contract after 2019?
LEMBAGA TABUNG ANGKATAN TENTER almost everyday sell, price to drop further if it keeps on selling, no support at all, a very worrying sign.....perhaps price drop to around the $2.30-- cents level?
Wednesday, 16 Mar 2016
5:25PM TIENWAH LEMBAGA TABUNG ANGKATAN TENTERA (306,900 units Disposed)
Monday, 14 Mar 2016
5:31PM TIENWAH LEMBAGA TABUNG ANGKATAN TENTERA (27,100 units Disposed)
Thursday, 10 Mar 2016
12:42PM TIENWAH LEMBAGA TABUNG ANGKATAN TENTERA (252,000 units Disposed)
Monday, 7 Mar 2016
5:17PM TIENWAH LEMBAGA TABUNG ANGKATAN TENTERA (722,500 units Disposed)
Thursday, 3 Mar 2016
5:17PM TIENWAH LEMBAGA TABUNG ANGKATAN TENTERA (187,800 units Disposed) 19/03/2016 04:02
curious2, agreement last until 2019, so no need worry now...maybe in 2019 you already not around. Important things is Tienwah still getting business from BAT currently. 2-3years time can change many things, maybe in 2019 annuar as PM already, chicken in jail.
Based on page 93 AAA, the key customer of TW announced that it will cease its manufacturing operations in Malaysia under an operations restructuring exercise and would be winding down its facility in stages and the process is targeted to be completed by Q2 2017. Basically, it will only start impacting TW in 2017.
Revenue decreased by 5.8% from 87.5m to 82.4m Net profits increased by 0.758m to 5.635m (+4.877m) EPS increased from 2.16cents to 5.81cents(+3.65cents) Borrowings decreased from 71.6m to 54.83m (-16.77m) Cash decreased from 71.33m to 43.516m (-27.814m)
Tienwah must continue to develop new opportunities which would lead to volume growth from new customer in other geographical segments and existing customer.
The Board of Directors of TWPH wishes to announce that the Joint Venture Agreement was legally completed on 5 May 2016 with the issuance of the Enterprise Registration Certificate for two members Company Limited by the lawful State Authority of Vietnam on 5 May 2016 and dated 29 April 2016 with regards to the disposal of 50% of Toyo (Viet) Paper Product Co. Ltd (“TVP”) to DOFICO for total cash consideration of USD1,629,763 (equivalent to RM 7,012,137) as per the earlier announcement dated 25 May 2015 (sections 3.2 and 3.8 c(ii) of the aforesaid announcement refer).
TVP has also changed it’s name to “TOYO (VIET) – DOFICO PRINT PACKAGING COMPANY LIMITED” to better reflect the joint venture.
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....
bursa36
125 posts
Posted by bursa36 > 2016-03-10 08:08 | Report Abuse
Volume seems not strong enough to support