There are not many stocks in Bursa that can show a net profit margin of 10% ( based on 2021 Q1 results). If I run a business with this type of profit margin, I will be very happy. The undervalue stock price is due to the bad market sentiment caused by the pandemic. Pandemic will be brought under control eventually, hopefully by mid/end June. This stock will fly, it is just a matter of time. Be patient.
This company did well last FY2020 compared to 2019 considering the covid disruption. Nothing to worry, if panic sell can get some more on heap sale sell
With higher average selling prices of products sold as mentioned in the latest 1Q 2021 report, I could foresee a glimmer of light at the end of the tunnel. In simpler terms it means higher margins will translate into higher net profit compared to previously, ceteris paribus. The 1Q profit of 13.3m achieved for an all time high revenue of126.8m is still below some of the previous years high comparatively.4Q 2016 at 95m profit 12.9m & 4Q 2017at109m,profit14m. I think there still room to improve further going forward because economies of scale will set in down the road thus to automatically reduce the cost of production which will in turn push the margin even higher.This will translate to higher profits which will contribute to higher eps,which would highly likely to afford 3A to justify a higher dividend to shareholders.
Something is very wrong with the company. I saw it last Friday. That day morning was up 3 cents with little volume. But after lunch it suddenly plunge with huge volume. It closed 4 cents down with more than five thousand lots done. I dmanaged to dispose all yesterday at 84 cents, losing 5K in the process.
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....
klinnsman39
80 posts
Posted by klinnsman39 > 2021-04-29 10:13 | Report Abuse
Hope to breakthrough 0.91 long term downtrend triangle in near term.