@Jupiter why you so impatient ? Did i say today it will limit up ? I said soon after the official announcement. If you don't believe in this counter, can sell and run away. No one forcing you to hold
BIOALPHA Holdings Bhd expects a full recovery in export sales in the fourth quarter of 2020 (4Q20), driven by stronger consumer demand in health products.
The company made a net loss of RM5.5 million against a net profit of RM858,000 last year, while its topline dropped 47.7% to RM6.53 million from RM12.48 million due to the impact of Covid-19 pandemic in the 1Q ended in March 2020.
MD William Hon said the projection is based on positive development on pandemic recovery and trade cycle.
“The 1Q loss was due to the drop in export sales as we were one of the companies that were affected by the global lockdown, which disrupted our exports to China and Indonesia.
“We are also subjected to seasonal trade impact. However, we have seen a recovery in June, with our exports to China and Indonesia resumed.
“If the pandemic is kept under control, our sales will be back to normal, or even be more aggressive in 4Q due to the aggressive buying of health products as people are getting more health-conscious,” he told reporters in an online briefing yesterday.
Besides the changing in consumer behaviour, Hon added that the sanguine expectation will also be driven by its recent secured contract for the production of health foods and nutritional meals for the China market.
The group has entered into a tripartite agreement with Guizhou Yuhexin Trading Ltd and Hainan Shifengfu Co Ltd to supply health food and nutritional meals to both the private and public sectors in China for RM426.7 million annually.
Hon said the particular contract is expected to add about 3% to 5% to its profit margin each year the contract is being materialised as the group plans to minimise its operational cost.
“We have an internal target of between 3% and 5% for the gross profit margin. But, it also depends on our partners on whether we can achieve an economy of scale.
“To achieve that, the operational cost in China will be kept to a minimum as our partners are China-based and have a complete operation,” Hon said.
Under the arrangement, Bioalpha has been appointed as the main contractor and technical advisor in the formulation and supplying of the ingredients for the preparation of the health food and nutritional meals.
The contract is expected to be completed in five years and is subjected to an annual review, with a potential total contract value of RM2.1 billion.
Hon added that moving forward, a portion of the ingredients on the meal formulation is expected to be sourced locally from Malaysia.
“Most of the ingredients will be sourced in China at the moment. Moving forward, we expect more of Malaysia’s indigenous ingredients, as well as from other parts of the world, will be sourced and supplied to China as well,” he said.
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....
lauahpek
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Posted by lauahpek > 2020-08-25 09:37 | Report Abuse
really bo?