All those who bought high & attended this year's AGM(eg Arthur lol) all nursing massive paper losses if they haven't sold already...
I have 500 shares costing 2.481 which are free thx to over $4k in profit earned in '15-'16 and have yet to buy back another 500 shares to make it 1,000 on my way(slowly) to a peak of 15,000 seen in Apr '15.
It should actually be consider bad news as it will reduce CCB profit substantially.
If you look at the 9m18 results of RM19.3mil PAT, RM11.2mil of that profit actually comes from the dividend from Mercedez Benz Malaysia Sdn Bhd (MBM).
If you to take that out, 9m18 result would have only been RM8.1mil. And if you were to exclude the RM12mil compensation from insurance claim in 2Q18 (which is none core earnings), then the core earnings of CCB would have been -RM3.9mil. Please take note that 3Q18 result of RM4.9mil could only be achieve due to the tax holiday period (which is why Revenue was high for the quarter).
In FY19 most analyst actualy expect lower profit margin for CCB due to Mercedes focus to shift to lower margin cars. So CCB would most probably post a negative result next year.
If you are interested in having an exposure to the automotive industry, then i would recommend you to consider MBMR.
The company is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.3x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year 4Q17. And FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19.
If u read carefully, all the capital expansion is not generating additional income or significant savings, meaning, the showrooms and facilities won’t affects much of their selling of products, so why spend so much? Directors relatives doing renovation company?
Looking at the PL, they r just listed for the sake of listed. Pity the hardcore shareholders. And minority watch dog group does not look into this company?
Marketing is cost, I don’t see profits. Good company can manage to pay tax and pay back to shareholders at the same time invest in capital expenditures. This is the incapability of management or there are leeches in the board or higher management!
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....
shareinvestor88
3,404 posts
Posted by shareinvestor88 > 2017-11-06 20:16 | Report Abuse
Profit drop. Sell. Target 1.00