Boss is trying hard to pump the price up but too sad no supporters. If they give a dividend of say 0.50 I think the share fly over night. But this type of dividend only Tony of AA could give away. China men company the most can give you a pc of hair, some even worst , not a hair is given....lol.
As can deduced from here the export market is surging due to new and unique products aggressively being developed (R&D). On top of that the new products carry a higher margin which will drive earnings further
Management foresaw strong demand approaching which could cause supply constraints,they planned ahead with the recently acquired lands in the vicinity to expand production and storage capacity.
1. By Sept 2020 the new warehouse cum new office is expected to be completed.This is to cater to the storage of more raw materials and finished goods in anticipation of increased in demand.The newer and unique products are also expected to take up a sizeable space.lt was beautifully executed. Why? Two more new plants are coming on stream because of near full capacity ie HydrolisedVegetable Protein/Soya Protein Sauce Plant & Caramel Powder Plant. 2.As for the former it is a new plant whereas the latter is a Maltodextrin Plant No 1which is being modified and converted.l hope these 2 plants to start production soon. 3.The capacity of the Maltodextrin No 1 Plant will be taken up by the newer and more efficient Maltodextrin No 3 Plant to shore up its under utilised capacity to achieve economies of scale sooner thus reducing production cost considerably.
With all the expansion plans in place,I expect exponential growth going forward very soon. This is being further confirmed by the unwavering support from Mr Teo Kee Hock (3rd largest shareholder) . Since March 2019(Annual Report 2018) from 22.7 m shares he he increased his holding by more than 50% to more than 35m shares unabated. Is this not full prove of the confidence he attaches to 3A???
In terms of share price, I would say it is a laggard or rather an unpolished gem due to the following:- 1. Tightly held shareholding structure ie the top 4 accounted for nearly 50% or more 70% are being held by the top 30 shareholders.2. Long term funds like EPF is also inside.3.Low volume transacted due to low liquidity,so it is being overlook by most analyst 4. Publicity is quite but not equally important to drive the share price forward.Lastly,the only factor that can propel this heavyweight elephant forward should be its own fundamental!
Q4 2016 nett profit at 12.9m,eps3.29. Q4 2017 14m,eps2.85. Q4 2019 near 10m,eps 2.03.Q1 2020 8.8m,eps1.8 . High hopes can revisit these levels in the immediate future due to the initiatives being undertake and a little bit of more consistency.With a PE 15x move it to the conservative target of 1.50
Unbelievable results. Looks like not affected totally by covid while many other companies are struggling. Longer mco seems to be better for this co. Good luck. ST trading play. LT negative. Major SH is actively buying and selling, no violation???
The current new head quarter is nearly in completion stage and the up coming new expansion few factories are on mobilisation stage, we can see a sustainable revenue and profit very quick in years
The coming quarter report will be good based on the past production activity and the main raw material cost especially cassava in thailand i believe will be in a very low demand as the crude oil is cheap to fight with ethanol. If the petrol is cheaper than ethanol, this will make ethanol slow in productivity and will bring down the cost for cassava.
With lower cost of cassava, 3A can buy cheaper for its production and generate with more profit.
Audits completed and acceptance given end 2019 by a large number of global big customers, the completion of a new warehouse and plans for setting up of a new lab plus the almost full capacities of a few existing plants and with plans to add new plants or upgrading of existing plants to meet the stringent demand from overseas customers.These are evidences of exponential growth in demand to come by in the immediate future as you can make comparisons between Q1 and Q2 2020.
London biscuits audit completed every year only see written off of 300m receivables when problems kick starts. Major holder plays himself is quite unusual.
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....
chkhooju
1,706 posts
Posted by chkhooju > 2020-02-05 23:01 | Report Abuse
Do keep an eye on 3A.