This quarter may be good result and people will push the price higher, but continue weak US dollar may affect next quarter earning, people buy high now will stuck later?
The chart is on retracement mode currently. Looks like it's going to 0.880, 0.840 then 0.800. Suggest to enter around 0.800 & below before another spike again. Good luck traders!
last year 2Q17 profit after tax is 6.728M exclude insurance claim of 12.7M this year 2Q18 profit after tax is 9.066M YoY increase % = (9.066 -6.728)/6.728 *100%= 34.75%
The Group registered sales revenue of RM 114.6 million for 2QYE18, an increase of 22% over 1QYE18. This increase was due to the increase in the sales volume of glove albeit at a lower selling price. The lower selling price was attributed to the gradual decline in the raw latex price since April this year.
I think the selling price were pegged to global market raw latex prices which was declining during this period. But their cost of purchase for the latex used in production were bought at a higher price prior to 2Q18.
But since June this year, latex prices has been recovering which would eventually result in higher selling price and lower COS in 3Q18 (as raw materials have to be procured much earlier during latex price downtrend).
So next quarter will see a better gross profit margin. And it seems like their sale quantity continue to surge upward, hence couple with higher selling price and lower cost, Q3 may yet see record profit.
don't worry. The boss very good in improving productivity. If he have not sell out Seal Polymer plant, he can beat top glove, hartalega. Just trust on the CEO.
Recent harvey hurricane had caused material cost increased within this couple of months and next quarter margin might be affected by 2 to 3% before passing to customers. Besides latex cost is increasing.
Revenue is good due to sales volume increase but margin being suppressed. Price is holding good before result out as compared to other glove counter. See how tomorrow and later on share price reaction.
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Posted by Alex Foo > 2017-09-15 16:28 | Report Abuse
rubber price got kaput?