All the profit seems to be in the inventory line which has increased substantially. Presumably this is in preparation for the move. It would seem that profit would be rather substantial without the inventory build-up. The painful thing about this company is that they don’t seem to have any interest in explaining what exactly is happening which may very well be good for the long term of the business. Perhaps the reality is more nuanced and much better than the dismal profit for the quarter would suggest on account of “increased costs”…
https://fifthperson.com/2021-ajinomoto-malaysia-agm/ The company has spent RM355 million on its new plant in Techpark@Enstek, Bandar Baru Enstek, Negeri Sembilan. The plant will be completed by 2022 as the construction activities were delayed by various phases of lockdowns. The expansion will leverage Techpark@Enstek as a halal hub to further solidify the company’s position as a halal food manufacturer and expand its reach to more Islamic nations. Company secretary Chua Siew Chuan responded to Minority Shareholder Watch Group (MSWG) that the production capacity of the new plant will be at least 20% to 35% higher than that of the old one. Solar panels will also be installed at the new plant to achieve some cost savings. The annual depreciation charges on property, plant, and equipment will increase by between RM10 million and RM50 million.
Ajinomoto is a beneficiary of economy reopening post MCO. Now almost all work from office no more WFH so this is good for Ajinomoto products consumption. 4Q2022 earnings should be good hehehe to be announced in February.
Watch out for good news in 3 to 4 weeks time when the result is out. Earnings already improved quarter on quarter for April-June period and July-September period. As more people eat out, restaurant will use more Ajinomoto.
Could be Special dividend soon. Economic and financial performance excellent good. From 20 years ago to today, people have always said recession. The shopping at Mid Valley one U are crowded on Sunday, Long queue for a restaurant waiting seat. Everyone can fly, please study Airasia finance result.
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....
Posted by Hanoi > 2022-06-28 21:00 | Report Abuse
Anticipate raw materials cost Still high for coming quater due to high inflation