USD to RM at 4.27..... Kesm depends mainly on strong currency exchange for increase in net profit with flat revenue. With usd dropping, what will happen to KESM's EPS?
100% profit of the subsidiary is now belong to KESM (you can see there is no more "minority interest" in balance sheet / "non-controlling interest" in income statement).
USD to RM at 4.18, KESM still got power? Previosly KESM share price got momentum bcz RM weak. If USD to Rm below 4, what will be KESM price, below RM3.5?
"Other income was higher by RM1.1 million or 96%, primarily due to higher exchange gain by RM0.9 million, arising from an appreciation of US Dollars against Malaysian Ringgit on US Dollars denominated receivables."
However profit attributable to owner has increased to RM10.4m from RM6.6m. Clearly forex only plays contribute very little. Why keep harping on forex? Swt...
Guys, I think we are missing the point here. Indeed the RM improved. But it is still 4-something. KESM investor should only be worried if the RM is back where it was before the hike. And I personally think the RM won't improve that fast considering our political fiasco as well as 1MDB.
see? weakening back, no volume! it has many weak holders eager to sell and take profit....I bet RM5 most will get out..............haiz, my TP rm6 seems hard
Sifu paperplane, plz try to look mmsv. Roic improved from 28% since 2013 to >40% now. Its cash flow looks perfect. Fcf/revenue is superb. Current ratio ~4. It turned over a new leaf since 2013. What say you?
But iv with margin of safety is the best reference that we have. Coupled with some financial metric like roic, ey, roe, pe, fcf/revenue etc plus looking at its revenue/profit cagr + profit margin. Very quantitative in a sense but...the only reference that we have...history doesn't necessarily repeat itself but it does rhyme. Am i not right? :)
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....
pang72
52,351 posts
Posted by pang72 > 2015-10-07 13:42 | Report Abuse
Keep buying till bonus announcement