Steel export only accounts for small percentage of Annjoo revenue. Majority of the steel products are for local demand. So RM strengthening has little negative impact on Annjoo's earning. Moreover increase in steel export due to rise in regional demand will mitigate this.
"Based on the 21% of produciton expansion (850k ton from 700k ton) metric tons as per Annjoo’s CEO (Dato Lim) in the Asia Nikkei’s Interview, the estimated increment in Annjoo net profit (GP) in 2018 is given by the below equation:
NP = 2017 Revenue X 1.21 (21% increase in production) X 10.5% (higher PM as ASP increases by 10%)
= RM2240M X 1.21 X 0.105
= RM285M"
Why is revenue for 2017 total RM2240m? The latest 4 quarters revenue amounts to RM2026m. Is my calculation wrong?
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Albukhary
3,021 posts
Posted by Albukhary > 2018-01-24 21:54 | Report Abuse
Good analysis! Thumb up!