Equation below need to be added with "Increase in product Selling Price" too..if i am not wrong:
......................................................... As a result, Muda's raw material cost has also dropped drastically. To put it in simple mathematical term :
Increase in Revenue + Decrease in Raw Material Cost = PROFIT MARGIN EXPANSION.
Posted by Jon Choivo > Apr 23, 2018 06:15 PM | Report Abuse
Sales going up, but margin is compressing really heavily no?
It's true that margin has dropped by few percentage points due to rising resin and strengthening of ringgit but still remains healthy level la, not above 20% as enjoyed previously but approx. 17% is commendable.
I believe growth in sales would more than sufficient to cover the erosion in margin.
Demand for environmental friendly packaging is growing and the potential is huge.
I can see the potential growth for it, but its a cost based industry, and supply seem to be more than able to meet demand judging by the margin compression.
14 PE seems a bit rich for a company undergoing margin compression in a cost based industry.
Just my opinion of course, you may see differently. Let me know if you think i missed out on something
It's true that margin has dropped by few percentage points due to rising resin and strengthening of ringgit but still remains healthy level la, not above 20% as enjoyed previously but approx. 17% is commendable.
I believe growth in sales would more than sufficient to cover the erosion in margin.
Demand for environmental friendly packaging is growing and the potential is huge.
Taking into account of projected growth, forward PE is less than 14x. Depending on risk profile, some might wait to go in say less than 10x PE, some buffer to cushion any adverse outcome.
Company has been aggressive in expanding their capacity, sales likely to grow in the next few years.
Posted by Jon Choivo > Apr 24, 2018 09:26 AM | Report Abuse
I can see the potential growth for it, but its a cost based industry, and supply seem to be more than able to meet demand judging by the margin compression.
14 PE seems a bit rich for a company undergoing margin compression in a cost based industry.
Just my opinion of course, you may see differently. Let me know if you think i missed out on something
They are good companies trading at less than 6PE now. That's 50% cheaper. And its a bird in hand, instead of a bird in bush.
Not attacking your picks. Just pointing it out. The goal is to make money after all. Who right or wrong don't matter.
=================================================================================== Fabien Extraordinaire Taking into account of projected growth, forward PE is less than 14x. Depending on risk profile, some might wait to go in say less than 10x PE, some buffer to cushion any adverse outcome.
Company has been aggressive in expanding their capacity, sales likely to grow in the next few years.
Of course in a down market, many companies trading at cheap valuations. Plenty trading less than 6x PE.
There are many better investments too.
I mentioned SCGM as im happened to look at it at that point in time, and perhaps might get some view from any i3 members here. It doesn;t mean it is the best investment, don't get me wrong here. I'm that lazy to promote any stocks that i researched on.
And by the way, i don't own SCGM yet. It is in my shortlist.
Posted by Jon Choivo > Apr 24, 2018 04:13 PM | Report Abuse
They are good companies trading at less than 6PE now. That's 50% cheaper. And its a bird in hand, instead of a bird in bush.
Not attacking your picks. Just pointing it out. The goal is to make money after all. Who right or wrong don't matter.
Above article-With almost zero imported waste paper cost and ever rising price of finished product, Muda will report super super profit, the only sailang stock for 2018
Sailang stock become limit down stock, blow too hard now burst, as normal
As I said earlier, many now LOSE UNDERWEAR.
KLCI King Sailang at this kind of market situation when there are pretty of uncertainties, you will either WIN BIG or LOSE UNDERWEAR later 25/04/2018 11:23
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Posted by Invest_Sensibly > 2018-04-23 11:56 | Report Abuse
Apa cerita orion & pworth?