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.
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Posted by RainT > 2021-05-21 12:34 | Report Abuse
what is danco prospect ?
can it profit grow more?