I suggest our bro. to recommend some stocks for us to buy . Don't know can or cannot because we always choose the wrong company and did't know how to analyst some company fundamental . We need his recommendation . Thank you .
just to highlight something, the sensitivity test in the financial risk section is just the currency risk for current balance sheet exposure if I not mistaken, it is true that USD denominated loan is bad for tongher, but we can't denied that exposure of revenue in USD is more than exposure of USD in loan for tongher assuming all 77% of revenue exported to oversea is denominated in USD. (I din read through the financial statement for tongher, so I might be wrong, but this is based on my experience reading other companies/ financial report, please correct me if I am wrong ya, thanks for sharing especially on the investment in associate, some companies have loan in USD to serve as natural hedge to their revenue that is majority denominated in USD.
nicholas1184, eventually what is in the income statement must convert to balance sheet items. For example revenue becomes trade receivables and cost of goods translates to payables etc... if the net exposure of Tong Her in USD is -ve means its USD short term liabilities is more than USD short term assets, then strengthening USD will not benefit it.
now u have put a hole to their's(whichever media on the company side in mutual benefit) so called "conspiracy"... which is good for a newbie or small fish like me... thanks for the good article...
Nicely done article. One more thing, if you look at the sensitivity analysis, you will see a huge loss also if THB depreciates against USD. To date, I think THB is down about 8.2% to USD, so it is a double hit for Tong Herr.
One thing I'm curious, the quantum of loss for 10% decline in THB is almost as much as for 10% decline in RM vs USD. This is strange given that THB denominated loan amount and external revenues from export to Thailand are both very small.
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Posted by kai8994 > 2015-09-02 17:30 | Report Abuse
One of the few that read through Annual Report! *thumb up*