alpha: yes but tomei is not gold etf, they make profits from sales ... high gold price will increase profit margins but still their bottom line comes from sales, if gold is at 5000usd but they dont sell single ring they dont make any money. same if gold price is low but people will go crazy and buy lot of gold, they make profits. I am a long time supporter of tomei, but thanks to their fundamentals, for me its not just a gold proxy, for that i buy directly gold etf ...
im a strong supporter of tomei, but i dont expect any significant gain in the short term, it will probably take months maybe even year to get to its fair value, next QR will be affected by FMCO so impossible to inspire people to buy, price of gold also can not expect will go up significantly, the company listing proposal will also take more time... just hold & buy more on weakness
crying: share investment is a longterm thing, never invest money which you will need within 1-2 years at least, if your post is not just sarcastic joke, you will need to hold for some time once profits starts flowing in again once shops reopen
- compared to the last year, both Q/Q and H/H gross profits are significantly higher
- "cost of sales" is a culprit for lower profits
- EPS Q/Q is 0.98/1.36, H/H 10.97/4.25 - so, so far this FY cum. EPS still more than double compare to prev. FY
- current assets & reserves up, liabilities (both) down
- "Net (repayment)/drawdown of short term borrowings" -15.1M, this is significant
- cash down, bank overdraft up (MCO?)
- net gearing ration down to 0.63 from 0.67, good
- during this Q they paid div 2 sen
- "During the period of the FMCO, the operations of the Group with the exception of e-commerce division were shut down in compliance with the order", we know this ...
- " the Government has on 15 August 2021 granted some relaxation to the economy sector whereby 11 additional selected retail sectors including the jewellery business are allowed to reopen starting from 16 August 2021", we are looking in to the future
- compared Q/Q sales & manufacturing is up 93%, H/H is up 92%
- "due to lower gross profit margin, the Group reported lower profit before tax (“PBT”) of RM2.126 million compared to RM2.540 million last year."
- "The Group’s revenue for the current quarter of RM146.644 million is 42% lower than the preceding quarter due to the lockdown for the whole month of June 2021. As a result, the Group reported a lower PBT of RM2.126 million"
Results are worse than I was expecting, but it is a MCO QR (partially) and it is all about the future results only. No one was expecting miracles for this QR after all. Im not happy with these results but I will keep on averaging down and hope for coming 2 - 3 QR catch-up.
I really dont pay attention to negative comments / low target prices, I decided on tomei a long time ago and will not change my mind ... gold price is at elevated levels (see gold chart 2 and 5 years first before comment), shops reopening, fundamentals strong, people will trade gold a lot since they were unable to do that during MCO etc. etc. my target is around 1.5rm
my reasoning is, if someone needs to sell or buy gold, they will not simply "cancel" their plan because of FMCO, they will wait once shops open ... and gold counters make mostly money from transactions -> more transactions = higher revenue = higher earnings, independent of the price of gold (but yes, high price of gold improves margin)
ValueMe: the last EPS was 9.93 and you are right next QR will be less, but even with 60% EPS decline, tomei is heavily undervalued. Lower gold prices are long time priced in already, it was actually very overdone.
hui: I cant give any investment advices, dont have license for that. Your decision should depend on your risk profile and buying power. I am in a minus right now and keep on averaging down on any weakness. For me tomei is a good investment longterm as their fundamentals are improving and it is trading with a very low trailing P/E. Even when counting with the current prices of gold, tomei should (once shops open) deliver at least 20sen EPS.