Very concern about fitters at this juncture...seems like their business plan not working too well...miss out on big piping contracts....needs to be more agressive in marketing i suppose...
this quarter report show improvement on Hypo pipe business and especially on renewable energy business after a year of low revenue. atleast I can see what I wish after long waiting.
The quarterly reports NEVER explains why HYPRO PVC-O pipe business is making more loss. Bank loan has doubled assuming for purchasing of the pipe manufacturing property/equipment, and AHT Syngas in Netherland. I wonder why "Depreciation and amortisation" has doubled. Need to look at the next annual report.
Renewable energy is now the main revenue generator.
UY, you're right, their plan is to have 3 lines running by end of 2015. By calculation, they estimate production of 7,000 tonnes or 2,354KM of pipes by end of 2015. Datuk Richard Wong expect revenue of RM70-75 millions and average 20% profit margin for this year. However, the QR shows that the revenue is only at RM2.5 millions. Can they catch up? I doubt that.
On the other hand, TNB is buying 2MW of electricity at RM0.47/kWh for 16 years. I wonder why TNB are willing to buy at this rate, higher that most commercial or residence tariff. High rate also means TNB cannot buy more electricity even though FBG can produce more than 2MW. It is very hard to compete when the world fuel price is low.
share buy back should be good as company feels that current share price is undervalue and confident with the company. Therefore, they will buy their own share....
Yes I still hold fitters because stuck at high price.. Feel like this is a wrong investment and thinking cut loss and put more fund in latitude, SAM and Liihen.
Buy back to improve ROE. EPS has dropped. While the price is dropping slowly..that make the PE increase to 15. Buy back at down market when performance has good or normal growth then it make sense. Fitter should buy back. But investor should not stay any longer with this poor performance company at this down market.
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....
jfanalytic
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Posted by jfanalytic > 2015-11-18 19:17 | Report Abuse
Next Q result may not be good also.