Hopefully with interest rate reduction, demand will come back

Based on the quarterly results Q1 2024, it looks like there is a delay in any possible turnaround.

Note B1, there is a delay in the start of spunlace production.

Additionally, it looks like all is not well in Indonesia. Even after making substantial investment in cross lapping and vertical felt production lines, quarterly sales are lowest since Q4 2020.

Revenue in Thailand has not shown any improvement. Sales of only RM3.1 mil, significantly less compared to sales in Q4 22 when sales was RM5.7 mil.

https://theedgemalaysia.com/node/707557

Hope this will increase sales in Indonesian.

Disappointing Qtr 4 2023 results. Management predicting 2024 will be another challenging year.

Does anyone have any info on the new non-woven needle punch machinery that has been installed at the factory recently? Info like capacity, potential revenue and profitability of this type of product.

Using a PE ratio of 20 to project TP.
For the stock to go to RM0.40 would need to generate an annual profit of about RM5.2 million or quarterly profit of RM1.3 million.
For TP of RM0.60 annual profit would need to be at RM7.8 million or almost RM2 million per quarter.

I don't see this happening in the near future. For the first 9 months of 2023, total profit was RM2.1 million or average per quarter of RM711k. The quarterly profit would need to almost double for it to justify TP of RM0.40 or increase by 275% for TP of RM0.60.

This is only my opinion. Please do own analysis.

Per quarterly Report:
The reduction in sales in hygiene division was due to weakening of
Japanese Yen against US Dollar had made our export sales price to Japan less competitive.

Dividend only RM0.005, lowest since 2013 (lowest in the last 10 years). Foresee Quarter 4 2023 performance will be about the same. Guess, we have to wait till 2024 to see improvement. Will only add if stock price goes below RM0.30....probably below RM0.27.

https://theedgemalaysia.com/node/689902

Doesn't look good for felt division.

I anticipate Qtr 3 2023 results to be bad. Being drag down by the hygiene non-woven division and increase in overall cost due to depreciation of the Ringgit with higher labor and electricity cost. 2023 dividend might be lower than 2022.

I think OCNCASH will turn around in 2024. Catalyst includes spunlace sales, Indonesia insulation plant start making new products and Thailand insulation plant ramp up production. Agree with you, can start collecting at current levels. Must have holding power. Not much downside, look for decent returns in 2024.

Recovery will be slow, after last year supply chain issues, customers stocked up on inventories. Now the customers are destocking. With interest rate going up, demand has also slowed down, taking longer to destock. Once customers have destocked than we will see recovery. Unfortunately, recovery will be slow as customers will be cautious and apply Just-In-Time inventory management coupled with slower growth.

https://theedgemalaysia.com/node/682025

Doesn't look good for manufacturers

Disappointing Q2 2023 results.
Compared to Q1 2023:
Insulation division recorded lower revenue (about 20%) and lower profit (about 21%).
Hygiene reported a slight increase in sales (about 2%) but a much bigger loss (almost 300%).

As for prospects: Directors anticipate performance to maintain at current levels for the rest of 2023.

Lumber prices were near the $530 per thousand feet level, recovering from an over two-month low of $495 touched on August 11th, as expectations of low supply offset evidence of low demand.

Not so good news from the RV Industry, where in July 2023 total RV shipments ended the month with 20,520 units, a decrease of (-30.5%) compared to the 29,528 units shipped in July 2022. To date, RV shipments are down (-47.7%) with 185,350 units.

On a positive note, sales of new single-family houses in the United States climbed 4.4 percent to a seasonally adjusted annualized rate of 714,000 in July 2023, reaching the highest level since February 2022 and surpassing the market consensus of 705,000.

Yes, I believe the worst is over. Hoping to see FLBHD back to profitability in the 2nd half of 2023.

Lumber futures extended losses to $510 per thousand feet, the lowest in nearly two months driven by concerns about weakening demand, despite a decrease in supply.

Sudah U-Turn....back to 0.40?......Orang goreng ka?

Lumber futures extended losses to below US$520 per thousand feet, the lowest in six weeks driven by concerns about weakening demand, despite a decrease in supply. Housing starts tumbled 8% month-over-month in June reaching a seasonally adjusted annualized rate of 1.434 million, following a downwardly revised 15.7% jump in the previous month. The scarcity of existing homes in many markets has contributed to the growing demand for new construction, even in the face of higher interest rates. Still, shipments from Canada, the US's biggest supplier, are expected to decline after wildfires have led to a record-breaking 9.2 million hectares of forest burned so far this season. This comes on the back of production cutbacks in British Columbia and a slowdown in European wood shipments.

Additionally, June RV shipments tumbled to 24,095 units. A decrease of 46.4% compared to June 2022. Bringing YTD shipments down 49.2% to 164,830 units.

Have to be patience a while longer.

May RV shipments in US 30,919 units

USA RV sales in have also been ticking upwards. Total shipment in Jan 20,405, Feb 26,326, March 31,869 and April 31,216. May figures should be out this week.

Lumber futures surged above $550 per thousand feet, their highest since early February driven by supply disruptions and strong demand as the summer construction season approaches. In Canada, record wildfires have ravaged approximately 4 million hectares of timber since June 6th, even before the start of the official fire season. As a result, sawmills have been forced to shut down, leading to substantial disruptions in the forestry industry. Meanwhile, in the United States, housing starts unexpectedly jumped by 21.7% month-over-month in May, reaching a seasonally adjusted annualized rate of 1.631 million. This surge indicates a promising recovery in the housing market, which had experienced a slowdown due to factors such as high mortgage rates, elevated prices, and tighter lending conditions. The scarcity of existing homes in many markets has contributed to the growing demand for new construction, even in the face of higher interest rates.

US housing starts unexpectedly surged in May by the most since 2016 and applications to
build increased, suggesting residential construction is on track to help fuel economic growth.
Beginning home construction jumped 21.7% to a 1.63mn annualised rate, the fastest pace in
more than a year, according to government data released Tuesday (June 20). The pace
exceeded all projections in a Bloomberg survey of economists. Single-family homebuilding
rose 18.5% to an 11-month high. Applications to build, a proxy for future construction,
climbed 5.2% to an annualised rate of 1.49mn units. Permits for one-family dwellings
increased.
The increase in starts from a month earlier was the biggest since October 2016 and reflected
gains in three of four US regions. Starts of apartment buildings and other multifamily projects
jumped more than 27%. The number of homes completed increased to a 1.52mn annualised
rate. The level of one-family properties under construction was little changed at 695,000.
(Bloomberg)

POS still suffering losses. Recently utilizing their location as convenience store. This is good thinking but risky. If they don't make money and venture fail, BIG write-off.

As for PROTON, a recent chat with a dealer reveal that that sales are not doing too well. Sales have shifted from their high margin X50 & X70 to the lower value cars. Response on X90 has not been encouraging. The dealers have to rely on service to help cover their overheads.

I agree with Sherlockman, current price is ridiculously cheap. I am still collecting, the dividend yields will be very good in the future.

A lot of uncertainty right now. At recent motor show, new brands coming in. Chery will soon be launching their Omoda 5 and Tiggo 8 Pro; next Great Wall launching their H6 & Jolian; below RM100k Neta electric cars coming into the market. Market getting very competitive and economy is slowing down; the future profitability is in question.

Going back below 0.30?

Not looking too good. The annual report outlook sums it out.

Time to collect a bit more, keep and wait for market to turn around.

Qtr 1 results will not be as good as last year Qtr 1. I think have to wait for 2H 2023 to see if things turn around.

Last quarter results very bad.

Core Net Profit mere RM100k in Q4 2022, dragged by lower sales volume, deteriorated margins affected by supply chain issues and higher input cost (by HLIB Research).

I will wait for it to drop further before collecting back.

Looks like we have to contend with low lumber prices at least till the middle of the year. Stock price will be depressed. I have been holding this stock for years. Will continue to do so.

https://protonsetapak.blogspot.com/2023/01/proton-sold-142432-units-in-2022-136026.html

With strong car sales, insulation division will do very well. Next year, Proton and Perodua sales expected to increase even more and set new records. Thailand plant started operations with good sales. 2023 results expected to be the best ever.

I guess with lumber prices keep dropping to new 52 weeks low and ringgit strengthening, it is effecting the price of FLB. Based on my analysis, even at current lumber prices, profitability should be good. Additionally ocean freight charges have dropped significantly compared to year ago., this will help to reduce buyers cost. I am still holding, have been a long term investor and still want to enjoy cash and share dividends for the long term. New buyers might want to study first before getting into FLB.

https://protonsetapak.blogspot.com/2023/01/proton-sold-142432-units-in-2022-136026.html

Proton sales in 2022 is highest since 2013. 2023 will be even better with new model launches, 7 seater SUV and C-Segment Sedan.

Yeah, I also all in on Friday after Thursday announcement.

If we take last 2 quarters results as a guide, the EPS for half year is RM0.1622. If we annualize this will give RM0.3244. Take a low PE Ration of 12, the share price will be RM3.89. We discount 20% will give RM3.11. Share price have a chance to double from todays opening of RM1.43.

That day waited and collected at 0.295. Now no need wait and can straight away buy at 0.28. Wonder how low will this go.
Hopefully going forward profit will improve based on the following:
1) Ocean Freight Rates have drop significantly. This will positive for sales and profit of hygiene division.
2) Starting 3rd Quarter, renegotiated new increased pricing to current customers in the insulation division.
3) Insulation division new plant in Thailand to begin operations and should contribute positively to sales and profit of the insulation division.

FLBHD doing so well. Strong Net Cash Inflow. Trading at a discount below NTA. Zero debt. Rewards minority shareholders with consistent good dividends. Now bonus issue coming. If wasn't because of market sentiments, this stock should have set a all time record high. Am still buying.

Not only dividend of 3 sen, also share dividend valued at another 3 sen. (Yesterday close 1.50 x 2% (1 free for every 50). Total 6 sen.

https://www.theedgemarkets.com/article/proton-hit-highest-sales-volume-nine-years-august

Since December last year, we have gotten lots of dividend. In Dec 2021 got 0.05, In April & July we got 0.03 in each month. Now in Sept, we will be getting another 0.03 and share dividend of 2%.

Total cash dividend will be 0.14 and if current price of FLBHD is 1.40, the share dividend is worth 0.028. Total dividend from Dec 2021 to Sept 2022 is RM0.168. Based on price of 1.40, the dividend yield is about 12%.

I have held this stock for years, they have always been good to minority shareholders with good dividends. Much better than putting money in the bank.

Net Profit only 493k for the latest quarter. EPS 0.19 cents. Very dissappointed.

Proton sign deal to sell Smart EV car in Malaysia & Thailand. First model will be launched in Q4 2023.

Hopefully after results will have more dividend. :)

Stock is under valued. Buy, keep and forget about it. Next year this time, sure will up 20~30% from current levels.

Total share buy back to date 8.36%. Once reach 10%, possibility to get share dividend of 1 bonus share for every 10. I feel the stock is undervalued due to overall market sentiment. I will keep collecting, tak kisah the price.

I am still collecting after getting gaji. Good dividends, better than putting money in the back.

Bought back some DRB this morning.

https://www.thestar.com.my/business/business-news/2022/06/06/plywood-makers-see-strong-demand

Last few days added a bit more between 0.33~0.34. Based on information available, we will see 2nd half 2022 perform much better.