as expected, a big impairment in this quarter report.. hope this is the worst scenario already.

unless the company can manage to keeping the customer continue to pay and recover those impairment, then only will be able to ensure the revenue will not have big impact

bear in mind the incident this time will have permanent impact to the company revenue onwards. it will not recover and restore back to previous state immediately after MCO ended. company need to accumulate the amount of hire purchase receivables back to previous state in order to gain back the revenue and profit it supposed to have. and maybe need more due to lower interest rate now.

the dividend is lower than expected. i expected to have at least 4 sen. the lower dividend due to the revenue and profit didn't meet the grow that it supposed to. due to the COVID19 outbreak issue, the revenue dropped compare to last quarter report. Revenue is mainly from the payment of the hire purchases interest, revenue go down meaning ppl din pay in time, that not just lower the revenue, but will increase the impairment also, as the payment didn't made by customer, the amount become bad debt and continue become impairment after period of time. with just beginning of the outbreak and 2 weeks of MCO, already see the impact to the quarter report. the next report surely will be worst. things didn't turn better until June. with the current market conditions, those bad debt will be hard to recover. we can foresee the next quarter will have more impairment at once. with higher impairment and slow business, hire purchase receivables will be lower than this quarter, then the revenue onwards will be affected. need to get the next quarter report to evaluate the value of the company.

the second hand car sales on April were too little. expected for the quarter April to June of 2020 will be a big impact to the company. meanwhile we all know the customer base of the company is those who unable to optain loan from banks, thus the chance of becoming bad debt will be higher especially within the MCO period. for the coming quarter results on March may not see much impact, but i rather wait 3 more months to see the report of June. we won't know how much loss will suffer from the lower new loan, and higher impairment. lucky that gearing is not high, that's the only thing feeling safe.

although i don't think there will be any impact to the company next quarter report from the current market conditions, but i personally don't think now is the time to collect more.. it is cheap, but overall market not good

maintain target 40m net profit for financial year 2020 ended next month. looking forward to get 4 ~ 4.5sen dividend next quarter

overall another good quarter report. hire purchase receivables growing very fast, more than 8% compare to last quarter on September 2019. there only slightly higher impairment and higher tax causing net profit lower than last quarter. overall business still maintain to grow very stable. management really do a nice job.

btw, i also noticed some new term loan in the balance sheet. maybe they still continue to explore for better gearing methods. seems to be a good sign.

management also hints that next quarter business is still grow stable.

The hire purchase receivables increase 77m in first half financial year 2020 (Jun 2019 & Sept 2019), compare to last financial year, whole year hire purchase receivables increase 89m, this year the grow rate is consider super fast. with this rate, i guess this financial year net profit will be very close to 40m, and dividend should be around 7.5 ~ 8sen whole year.

first half year. June and Sept report

results is good and steady grow. but dividend is lower than expected. did not meet 60% of the net profit. 3.5sen / 6.25sen (diluted eps) = 56%. next dividend pay out expect to be more

just patiently waiting for quarter report

my way of investment is as long as company still good, and there is no other better investment, there is no reason to sell. unless need $ urgently la.

i din sell since the day i bought.

the hire purchase receivables grow 7.67% this quarter. compare to previous year average quarterly grow rate at 5.32%. expect will have better performance next quarter.

better than many blue chips in the market

business growing up...

by comparing the annually result, the hire purchase business really doing great which revenue and profit before tax increased 16% and 23% from financial year 2018. the company really doing well to improve the loan quality and significant reduce the impairment allowance. total hire purchase receivables grow 23% but the impairment reduced instead, well done. block discounting increase intact with company direction. but there is not perfection, the increase of workforce recently not yet see to have any positive effect to the business yet.

for furniture business, i think after all these years, although see the improvement, but still the profit margin still very low, just passed 2.5% this year, most of the expenses go to cost 60%+ and other expenses 30%+. now the impairment allowance come to a concern level 1.5% from the revenue, this is quite high if compare to the profit margin 2.5%.. hopefully the management will put some effort in the furniture business, improve the dealership, or find other better dealers.

overall the business seems to be positive, wish coming year business can grow more and stable

profit can be go higher but drag down by the furniture business. they can maintain a lower impairment on the hire purchase business, i think they should be able to do the same to the furniture business too.

how can the company have so much of esos?

as a financing institution, funds is important to company. there was a few times company having rights issue to increase the funds. although the treasury is not a big amount as past rights issue, but still worth good amount of money which can help the company business. if they can make use of it, selling to get some funds drive more sells or reduce financing cost, i think that is much better option

im happy to see the share price go up, but im more happy to see the net profit go up and the cost go down

i personally think that the management want to improve the company reputation and strengthen the confidence of share holders. i have seen them have intention to improve the awareness of the public to the company too. but still i think they can have better use of the treasury share.

i disagree the action on cancellation of treasury shares. they can make good use from it instead of just cancelled it. it is worth more then RM17m. the company was right issues few times in the past, but why not they just sell the treasury shares to get more fund? if that conflict with the chairman buying share from open market recently, they can look for funds institution or other investor to buy over. now the shares are wasted just to push up the share price slightly. im surely going to address out the issue in agm

wow, i didn't expect we have same thought! last agm management set a new direction, i see their are really doing well on that from last quarterly result. i have confidence the company will have good results this year

hi tracy, mind to share why you so confident to the company?

2 years new high. can it sustain?

another quarter with nice results. seems like they are pushing sales now. profits should be higher next year

suddenly got some volume today

这公司还真冷门，赚了钱也没人理

so far 7% of total volume traded in bursa today. and 15% of total frontkn share. what a day, long time since such a huge volume in frontkn

popcorn time

i just telling you what was happened to the dealing price in recent announcement

sell at PE13 is a reasonable price, market price may not always reflect company value. that's just what people given too much expectation. also, the deal should have been a while back to last agm where representatives of CP Asia present in the meeting. that time, the price is still around 0.40

really looks like last year pre panic sell..

wow

i wonder last year's panic sell event will happen again not

honestly, i think management will absorb the resin cost not to increase the selling price. They want to expand customer base, they want to get more market share, so that will be able to have enough customer for the additional capacity for coming new factory. That's what i feel the management doing now. So will expect margin drop in coming quarterly result until the new factory start production

related to old management?

is the management accidentally submitted wrong report? i thought they are supposed to announce the annual report this month. but end up announced quarterly report. lol

that's the thing that i wonder why oil prices already stable at average usd 65 since end of last year, but frontkn still making loss in that section.

a bit earlier than usual. results look ok for me. but sg make loss again. keep getting the o&g section pull the leg..

first and second quarters are always lower, but yoy is still gain even after they adjusted forcast for coming quarter. the main reason for their earnings soft is mixed, mainly due to weak usd, and also others small small things add up. the market concerns about is the drop of the sales on mobile division, they said is one of the high end product selling soft and will continue to soft for coming quarter, so that obviously indicate the fruit company product.

question, what frontkn do with the fruit company product?

have you really go thru tscm reports?

ok, so i feel disappointed that management keep quite all this while. will surely ask them explain in coming agm

so many sin ka here like they know everything inside the company.

better dun catch a falling knife..

same, not yet

anyone receive the bonus and warrant?

wow, another capex, thats good news, but something funny there.. the size is twice time bigger than the rented factory in kulai, the machine setup looks same 2 extrusion machines and 4 thermo-forming machines but the capital very much different from both, kulai factory capacity is 11m but klang only 5m? hmm...