Sales fm Taiwan increased from Rm57.5M (FH 2016) to Rm76.5M (FH 2017) or ard 33% while profit contributed from Taiwan increased from Rm9.3 to RM16.3M or ard 75% increase.At the moment Taiwan contributed ard 83% of the total operating profit Rm19.6M.
In the month of June 2017, the Company acquired 3,891,229 ordinary shares of NT$10 each representing 11.42% of the issued and paid-up share capital of Ares Green Technology Corporation (“AGTC”) for a total cash consideration of NT$93,675,619 (equivalent to RM13,273,927). Following the acquisition, the Group’s interest in AGTC increased to 84.65%.
For Second Half, will expect additional 15% profit from Taiwan as a result from the above.
undeniably, this result is outstanding.. Director actually not selling but buying 1million of shares on 9 Aug and 11 Aug... we can see the insider trading under disclosure column .. tat's the hint ady... congrats those holders..
agreed with Charles, if we included the additional 11.42% share in Ares Green, profit for this qtr can increase by ~900k, which is equivalent to extra 15% of current results... 2H definitely going to be much better....
They spent ard Rm28M last year in Ares Green to expand their capacity by 40% and we could see the increase in sales ard 33% in FH 2017 (while profit increased by 75%).
SF sales in 2016 was ard RM70.6M, if we anticipate 30% in sales in this year then it will be ard RM91.78M. Basing on profit margin of 20% (FH 2017 21%), their profit could be ard RM18.35M. By additional stake of Ares Green acquired in June, there will additional 15% of contribution, that there will be RM21M for second half.
So in 2017 Taiwan may contribute RM40M profit to the Co.
As no major CAPEX n investment is required, their cash may increase by RM40M-RM50M each year, this could be the reason they declared a div of RM0.005...
@samsambank you making me want to fart on your face. Lol. Only those people following buycall without research will buy 'em. I bet you stuck on this stock huh? Hahahah
Reading all the indicators and what not, it would seem like Frontken is indeed going to the sky but the reality is a little more tricky than what's written. Adoi la.
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....
melovesony03
362 posts
Posted by melovesony03 > 2017-08-24 18:14 | Report Abuse
indeed it is a good news.. looking to top up tmrw