Posted by Icon8888 > 2016-01-10 20:37 | Report Abuse

kissing KYY ass again... be fair and objective, don't follow blindly... KYY ask people to buy mudajaya at 2.70 and it went to 1.00. He is not god

Posted by Desa20201956 > Jan 10, 2016 08:34 PM | Report Abuse

I would not be shareholder if KYY had not alerted me to read CW Report. .....my gratitude to KYY.

Posted by letitgoletitgo > 2016-01-10 20:42 | Report Abuse

Desa20201956: In the annual report right? The 18mil included the calculation for the retained earning brought forward, current year profit and others in the balance sheet. I did not necessary show how much is the profit and loss generated for the year.

See note 6. The real NCi is RM8mil not Rm18million. (pages 59 and page 27 of the annual report.

Posted by Icon8888 > 2016-01-10 20:42 | Report Abuse

you only knew about Chin Well last week, how do you know about their pricing power ? I have been following Chin Well for ages, I can tell you they don't have the so called pricing power. As a matter of fact, there was an article in the Star in mid 2015 that will shed light on Chin Well, go fish it out before you open your mouth again

Posted by Desa20201956 > Jan 10, 2016 08:37 PM | Report Abuse

In business schools, they call it pricing power. Lets see who got the Power and may the force be with them.


<Mr Desa, margin expansion ? I thought you said the benefit will disappear the next quarter ?

So your chin well and scientex can benefit indefinitely, while my Comcorp can only benefit one quarter ?>

Posted by NOBY > 2016-01-10 20:43 | Report Abuse

Hi... even though you wont see forex gain if lets say USD stabilize ar RM 4.4 from now onward... the revenue in RM terms will still be higher.

Posted by Desa20201956 > 2016-01-10 20:43 | Report Abuse

icon....In the case of Comintel, they have to deal with very smart MNCs.........in the case of Scientex and Chinwell, they deal with price non sensitive end consumsers in their own currencies.

lets see who got pricing power.

Posted by Icon8888 > 2016-01-10 20:46 | Report Abuse

you have absolutely no idea what you are talking about

your opinion is not backed by facts, they are mostly based on assumption and wishful thinking

I never confronted people like this. Whether chin well is good or bad is none of my business, since I don't own any share (that tells you how I see chin well). But the way you attacked me in comintel earned you my attention (just in case other forum members wondered why I am involved in this debate)

Posted by Desa20201956 > Jan 10, 2016 08:43 PM | Report Abuse

icon....In the case of Comintel, they have to deal with very smart MNCs.........in the case of Scientex and Chinwell, they deal with price non sensitive end consumsers in their own currencies.

lets see who got pricing power.

Posted by letitgoletitgo > 2016-01-10 20:47 | Report Abuse

Desa20201956: From the result from last few quarter, I dont see Chinwel have any pricing power. Their profit margin remain almost the same. Hence the gain on forex did not give any impact to Chinwel.

Noby: Revenue increased did not necessary mean the profit will increased. If the revenue increased, profit remain or drop. How can you convince shareholder to buy at higher price?

Posted by Desa20201956 > 2016-01-10 20:47 | Report Abuse

look at the Statements of Comprehensive Income...the figure $ 17,889,553 is there. Non controlling interest.

Posted by Icon8888 > 2016-01-10 20:48 | Report Abuse

so ?

Posted by Desa20201956 > 2016-01-10 20:52 | Report Abuse

icon...unlike you, I like people to attack my shares. The more attack, the more research I do. Chinwell, Scientex, Jtiasa, Keinhin, Tguan, Genting amonst others.

Posted by letitgoletitgo > 2016-01-10 20:53 | Report Abuse

That 17.8mil included the adjustment for the retained earning.

Example the opening balance for Chinwel for Vietnam side is USD100,000

The currency is USD1 = RM3.50 on 31 Dec 2014 which is RM350,000 x 40% = RM140,000

On 30 September, let's assume the retained earning remained the same.

The currency is USd1 = RM4.40 on 30 Sep 2015 which is RM440,000 x 40% = RM176,000

The RM36,000 differences will recorded in statement of comprehensive income in NCI.

Also, the amount included the profit generated from Vietnam side during the year.

Hence you cannot use that figure to say that the profit for 40% is RM18mil.

The real NCi profit is RM8mil not Rm18million. (pages 59 and page 27 of the annual report)

Posted by Desa20201956 > 2016-01-10 20:54 | Report Abuse

the so is for the mrletitgo who don't go know how to read Income statements.

Posted by Icon8888 > 2016-01-10 20:55 | Report Abuse

nobody should attack anybody else's stocks

this is not the secret society

we should voice out our different view, but do it based on facts and truth, not malicious intention

Posted by Desa20201956 > Jan 10, 2016 08:52 PM | Report Abuse

icon...unlike you, I like people to attack my shares. The more attack, the more research I do. Chinwell, Scientex, Jtiasa, Keinhin, Tguan, Genting amonst others.

Posted by lux88 > 2016-01-10 20:56 | Report Abuse

Chinwell up due to good sentiment only (kyy and gangs buying), in fact this counter with poor growth.

Posted by Desa20201956 > 2016-01-10 20:57 | Report Abuse

Do you need to go to business school to learn to read Income statements...mr letitgo. ?

Posted by letitgoletitgo > 2016-01-10 20:59 | Report Abuse

People go accounting school to learn to read income statements. Not business school. Also, im talking about the facts. I dun wan to attack you.

Please remain calm.

Posted by Desa20201956 > 2016-01-10 21:01 | Report Abuse

whether accounting schools or business schools, or CFA programs, they need to read Income statements and should know about non controlling interest.

Posted by letitgoletitgo > 2016-01-10 21:03 | Report Abuse

If that one is NCI profit and loss, then what is NCI profit disclosed in page 59? RM8million.

Then what is the double entry to adjust the retained earning brought forward from foreign operation?

Credit retained earning and debit what?

Posted by letitgoletitgo > 2016-01-10 21:06 | Report Abuse

Please see page 36 on the equity section. It shows that there is 9mil of forex gain and 8mil of profit for the year for NCI. Do you understand that the section?

Posted by yktay1 > 2016-01-10 21:08 | Report Abuse

Don't live in denial. Plain and simple, just look at the gross profit which is flat yoy. End of story. Net profit came from items below the GP line. Mr. Letitgo is correct. KTHXBYE.

Posted by Desa20201956 > 2016-01-10 21:09 | Report Abuse

icon...if you are referring to the sanctions and tariffs imposed by EU on China for steel fasteners, it is good news for CW, not bad news. Got this from the forum here.

Posted by Desa20201956 > 2016-01-10 21:11 | Report Abuse

equity sections refers to movements in the reserves account....these are non income items. such as translation gains.

<Please see page 36 on the equity section. It shows that there is 9mil of forex gain and 8mil of profit for the year for NCI. Do you understand that the section?>

Posted by Icon8888 > 2016-01-10 21:13 | Report Abuse

u r totally behind the curve. that issue has evolved beyond your recognition

you have absolutely no idea where you stand now

but why should i share any info with you ? (btw, Icon8888 doesn't treat other forum members this way. Whenever they ask questions, I answer nicely and politely)

Posted by Desa20201956 > Jan 10, 2016 09:09 PM | Report Abuse

icon...if you are referring to the sanctions and tariffs imposed by EU on China for steel fasteners, it is good news for CW, not bad news. Got this from the forum here.

Posted by letitgoletitgo > 2016-01-10 21:16 | Report Abuse

Desa2021956: What i mean is that 9mil is translation gains which is derivatives from reserve or retained earning.

It is not real gain on Vietnam side as it should not included in calculation of earning per shares. Also, the tax authority will not consider this part of profit to calculated chargeable income. Why consider as the profit of the company?

Hence real gain from vietnam side is only RM8mil not RM18mil

Posted by pingdan > 2016-01-10 21:18 | Report Abuse

Nice and detail analysis from the author. Give you a like.

Posted by RainT > 2016-01-10 21:18 | Report Abuse

Realised forex is already happen and will impact the company profit
For unrealised forex it is accounting standard requirement to do this accounting entry either on monthly/quarterly/bi-annually/annually which depend on the company. Anyhow it must be taken in the accounts.
After that it will be reverse from the profit this unrealised forex because it is unrealised and just for presenting the financial statements more true and fair view so accounts will take in this. Accounts is always conservative.
Again unrealised forex will be reverse from profit and only realized forex will permanently affect the profit.

Posted by Lollipot Anison > 2016-01-10 21:19 | Report Abuse

the most important thing about this is USD will get strengthen more in the near future.

USD surge high when rate is confirmed to be hike. In the next 12-24 months, you will see federal review the rate - their target is 2% from current 0.25%. Now is only a start. You will see USD go up till at least rm4.8 year-end.

What does this mean? Those export-oriented company will continue to benefit from it.

Posted by RainT > 2016-01-10 21:21 | Report Abuse

Entry will be like this for unrealised forex
During the quarter (example):
Dr forex loss ( affect profit of the quarter )
Cr balance sheet
After the quarter :
Dr balance sheet
Cr forex loss (reverse back)

Posted by letitgoletitgo > 2016-01-10 21:22 | Report Abuse

RainT: exactly what i mean. The unrealised forex will impact on the next quarter result which is the coming 31 Dec 2015 result.

Posted by YOLOOOO > 2016-01-10 21:22 | Report Abuse

Wow, things have been escalated quickly, I am lost when u guys talking when it goes to the accounting stuff in details, seem like I need to go to accounting school to learn how to read all statements in deatils already

Posted by RainT > 2016-01-10 21:23 | Report Abuse

On the other hand realised forex will be :
Debtor A own rm10
When payment rm8
Dr bank 8
Dr forex loss 2 ( this is permanently affect the profit)
Cr debtors 10

Posted by RainT > 2016-01-10 21:32 | Report Abuse

For the the operation in Vietnam
Ringgit depreciated around 10% against Vietnamese dong from early 2015 until now
So all the revenue frm Vietnam operation will improve
On the other hand cost in Vietnam operation will getting higher compare to before this

Posted by YOLOOOO > 2016-01-10 21:37 | Report Abuse

Hope someone clears my doubts, as shown in the B5 statements above, the realised forex gain is RM 2,869,000 and the unrealised one is RM 1,875,000. As the realised one is already HAPPENED, therefore only the RM 1,875,000 which is the unrealised forex gain will affect the result during the next quarter?

Posted by letitgoletitgo > 2016-01-10 21:40 | Report Abuse

YOLOOOO: Realised forex gain will become negative (All trade debtor will adjusted to the rate when they made payment which is around RM4.28)

Unrealised one will become near to zero. (Average USD for Oct to Dec 2015 and closing rate for Dec 2015 almost the same)

Posted by YOLOOOO > 2016-01-10 21:45 | Report Abuse

Btw what RainT said has reminded me that chinwel does have* receivables and cash in different currencies like Euro, USD, Vietnam Dong, Ringgit and etc (AR page 62 and 64) which means it is not only benefited from the strengthening of USD against Myr but also Euro against Myr and Vietnam Dong against myr

Posted by RainT > 2016-01-10 21:50 | Report Abuse

CW only has operation in Vietnam so don't forget the costs operation in Vietnam will go up and press down profit
For Euro and usd, CW just sell to euro/usd so will benefit for forex gain on that

Posted by Munger > 2016-01-10 21:54 | Report Abuse

Wah..then i shud sell all my long holding export stock like inari, latitud, topglov and shift all to insas ioiorp that will benefit from the reverse trend of weak ringgit lo...hahaa

Posted by NOBY > 2016-01-10 21:55 | Report Abuse

letitgo, agree with your assessment, my point was absolute value of revenue and PBT will go up even if profit margins were stagnant simply due to the forex effect. However, agree that those receivables booked at RM exchange of 4.4 will incur a forex loss once RM strengthen so the risk is high. This is why some companies prefer to enter into forward currency contracts to hedge against this movements.

Posted by RainT > 2016-01-10 21:55 | Report Abuse

About the wage increase in Vietnam, we must increase every year but the rate is not that high 14%
This is follow the Vietnamese labour requirement
Management can decide to increase lower maybe 4% or 5% only
This 14% wage increase do not apply to all
If all increase 14% hahaha........u see many bangla come to work liao

Posted by letitgoletitgo > 2016-01-10 21:56 | Report Abuse

For your information, the cash recorded as rm4.40 as at 30 sep 2015. As per 31 dec 2015, the rate dropped to rm4.28. Hence unrealised loss on cash will incurred

Posted by letitgoletitgo > 2016-01-10 21:59 | Report Abuse

RainT: but the minimum wages already pass through. Hence some of the labour ( i dont know how many percent) will be forced to increase their wages to the amount that set by vietnam authorities

Posted by YOLOOOO > 2016-01-10 22:06 | Report Abuse

4.4/4.28 = around 3% , will it affects much?

Posted by letitgoletitgo > 2016-01-10 22:09 | Report Abuse

From huge forex gain to forex loss. What is the impact? U calculate yourself.

Posted by YOLOOOO > 2016-01-10 22:15 | Report Abuse

No big deal, temporary only

Posted by Desa20201956 > 2016-01-10 22:15 | Report Abuse

core profits or not is analysts short cut,
big funds looks at 3 things....management is good, business model is good and the figures are good. trust your own judgement.

< Posted by fayeTan > Jan 10, 2016 08:10 PM | Report Abuse

Letitgo, in such case one should look at core net profit... Which means exclude out all forex gain or loss... And all other one off items..>

Posted by YOLOOOO > 2016-01-10 22:16 | Report Abuse

next next quarter will become forex gain again if above rm4.29

Posted by YOLOOOO > 2016-01-10 22:20 | Report Abuse

Thank you for your hardwork Mr.Letitgo

Posted by Desa20201956 > 2016-01-10 22:23 | Report Abuse

on Vietnam wages., recently I gooogled the ILO wages report. I was totally fascinated.
Vietnam wages at 1/3 of Malaysia and China average wages actually already higher than Malaysia.
fascinating stuff.

I love it when Malaysian companies go to Vietnam to expand...get involved in the fastest growing economy in the world...like Latitude Tree, This Chinwell, Keinhin....many many others... This are the smart guys.

If you can tap into the growing Vietnam market, even better.

Posted by RainT > 2016-01-10 22:25 | Report Abuse

So everyday can eat pho ga, pho go, chao ga
Haha

Posted by Desa20201956 > 2016-01-10 22:28 | Report Abuse

too much focus on forex gain, core profits etc....not enough focus on what is really going on....ie margin expansions, management and business model is the downfall of lazy analysts.



<Posted by YOLOOOO > Jan 10, 2016 10:20 PM | Report Abuse

Thank you for your hardwork Mr.Letitgo>