Agree with Hornbill. X70 CKD will.be launched in Jan 2020. Proton vendors will start supplying now. Qtr 3 results will be good and Qtr 4 will be even better. Looking forward to 2020, X50 production will start in Qtr 2 for Qtr launch. Next 9 months looks good for the felt division. Hope.the hygiene will be doing better with the new customers. Awaiting for the next Qtr results and notes.
X70 CKD launch has been postponed. Originally was suppose to launch in Sept '19, than postponed to Nov '19, than read coming out in Dec '19, now hearing coming out after CNY. Hope the X50 is not delayed like the CKD X70.
Oceancash - Seas the Opportunity Author: kltrader | Publish date: Fri, 3 Jan 2020, 9:36 AM
We remain positive on Oceancash’s (OCP) business outlook after our recent meeting with management. We continue to like OCP, considering the i) favourable growth prospects in the hygiene’s nonwoven segment, ii) steady contribution of foreign felt sales from Thailand and Indonesia, as well as iii) strong management team with in-depth technical know-how. At 10x 2020E PER on the back of a projected EPS growth of 33% for 2020E, OCP’s valuation looks appealing. We reiterate our BUY call with an unchanged price target of RM0.61. This note marks a transfer of coverage. Foreign Felt Sales to Drive Insulation Segment Growth Profitability of the insulation segment was flat in 9M19 despite higher felt sales (+6% yoy) as this was largely offset by weaker PBT margins (-1ppt to 18.7%, exacerbated by adverse forex movement in 1H19). Prospects wise, we believe the increasing contribution from Thailand and Indonesia
(foreign felt sales accounted for c. 61% of 9M19 insulation revenue) should be more than sufficient to cover for the expected shortfall in local felt sales (est. 2020 TIV forecasts lower by 1% to 590k units).
Insulation Felt Plant in Thailand Should be Ready for Action by 2H20 Elsewhere, construction of the felt production facility in Thailand remains on track to be completed by 2H20, and OCP is planning to relocate one of its two existing Malaysian production lines to tap into 1) the strong demand for resinated felt and 2) increase utilisation of excess capacity (current utilisation rates: est.50%). Locally, we understand OCP has been supplying felt to Proton refreshed models (ie. Saga, Iriz and Persona), and with this track record, the company is hopeful to participate in the Proton Complete Knocked-Down (CKD) X50 supply chain moving forward. We think OCP may give the CKD X70 contract a miss due to unfavourable pricing, similar to our observation of other auto-parts players.
Hygiene Segment’s Margins to Benefit From Cheaper Resin Cost, … Outlook for the hygiene segment still looks promising - 9M19 PBT rose by 10% yoy to RM2.5m, on higher revenue (+1% yoy) and improvement in PBT margins (+0.5ppt to 6.1%). We believe the cheaper resin cost (est. 80% of hygiene’s raw material costs) will likely see an uptick in hygiene’s margins in the coming quarters.
Dear underhand, it was not a underperforming stock, ocncash was under consolidation. Ocncash will always be a darling superd stock. Happy first (1st) anniversary year to the mainboard.
Oceancash Pacific Berhad, together with its subsidiaries, is engaged in the manufacture and trading of non-woven products and thermobond felts for thermal and acoustic applications in Malaysia. Its products are used in various applications, including the interior and exterior trims of automobiles, and noise damper for the compressors and outdoor units of split unit air-conditioners, as well as insulation in buildings including roofs, ceilings, walls, partitions, and floors as carpet underlay. The company is also engaged in the manufacture and distribution of thermobond and airthrough nonwoven cloth and polyethylene film for hygiene applications, which include top and back sheet of diapers and sanitary napkins, and wet wipes, as well as surgical apparel, such as caps, masks, and gowns. In addition, it produces laminates of nonwoven and PE films for various applications. Oceancash Pacific Berhad is headquartered in Bandar Baru Bangi, Malaysia.
Oceacash involves in wide ranges of hygiene manufacturing of diapers, sanitary napkins, wet wipes, surgical apparel, caps, masks and gowns. It will significantly boosts it sales due to the widespread of coronavirus.
Buy when the trading volume has not increased before the potential unexploded charge. Ocncash technical reviews: Macd has opened up, and the trend of double bulls. Whether the Wuhan epidemic has lifted masks on demand, the increase in domestic car sales has also increased the supply of automotive felts. After 52 weeks of Rm0.525, the next bearing capacity is 61 cents. 71 cents, 76 cents
The sales lift from proton ckd aside. At pe 20.4x, it is relatively still cheap as compared to the healthcare proxies ie gloves companies which are currently trading above pe 30x to 50x. Which could face hurdles for on upside.
With the epidemic of wuhan corona virus outbreak which is getting rampant as many more are being infected and casualties numbers are rising. This should bode well for ocncash hygiene products segment. The company should see its China's contributions starting to contribute to its top line soon due to the sudden surge of demand in medical and surgical equipments.
As quoted in latest AR 2018 on its prospects
"" Despite the drop in financial performance in 2018, ONW’s prospect in 2019 looks promising as the new investments to enhance its capabilities started to bear fruits. We have started supplying perforated nonwoven cloth to a local customer. Furthermore, our spooled roll nonwoven cloth is in the trial run process in China. Spooled roll nonwoven cloth is the trend for the local, China and India hygiene market. Meanwhile, we have secured a customer in Eastern Europe and are in the process of developing additional new nonwoven cloth for them. With the enhanced capabilities in place, ONW is in a position to meet the demands and new trend in nonwoven cloth. We foresee hygiene division sales to pick up in the second half of 2019. "" "
I leave to the crowds here to determine and think about its future prospects.
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....
hornbill
822 posts
Posted by hornbill > 2019-11-05 09:35 | Report Abuse
start to have some signal.