Correct me if I'm wrong. In AGM, the management said it has been settled but didn't say it's been reflected in latest qtr report. And I couldn't find any item related to this in the report.
I'm a bit reserve about this counter now due to their profit margin trend. No doubt revenue will improve this year but profit margin would be around 10% compared with the past 15-20%. MTL going to contribute around 40% of their revenue and lower margin due to the nature of metal stamping business. In AGM, The answers given by management for most questions were too brief without further insights. Likely they don't have the concrete plan to improve this yet and aim more on inorganic growth through synergistic acquisition.
Acquisitions are good, but I am more interested in their direction. Their acquisitions should complement or move out of the niche or passive industry that they're in.
For the profit margin, I think with the acquisition of MTL, its inevitable that it will be lowered. That said, the volume is higher, so all they need to do is to introduce a good product mix and a better value, that would improve the margins. On top of that, securing contracts would also be good for the margin as well.
Whereas for the lawsuit settlement, I think its not reflected in the QR. But personally with the cash they have at hand, its rather insignificant.
Also thinking the same thing. This is the latest they have ever posted the Q2 results. Always in August, never September. Not gonna lie, making me expect bad result.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
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....
RainT
8,448 posts
Posted by RainT > 2021-05-21 12:34 | Report Abuse
what is danco prospect ?
can it profit grow more?