Someone Is making people scared , so u guy Can dump more so He Can buy cheaper. If this company on balance sheet have more than 6000% turn over profit ,Just think For yourself, don”t Just someone Post something, u scared until pant also don”t want. Think For yourself.
Gap down, DJI down 700+ pts and Nikkei down 950+. Supporting level break and downtrend. Cheap can become cheaper and low can become lower. Good luck...!
1)Muda has the highest capacity of paper mill (upstream) in Malaysia. It benefited from China Blue Sky policy (ban of waste paper import) which the selling price of their products have increased consistently from Q4’17 to Q1’18 while the raw material (waste paper) price has dropped. 2)The timely expansion of Muda in 2017 and 2018 (to be completed in Q3 and Q4) for its paper mill and corrugated plants coincident with the price surge of its product. This will further drive its profit growth especially in Q4’18 due to peak season of online retail shopping in Nov and Dec. 3)Since 2nd half of 2017, paper price in China has been rising, and remain elevated until now. This was caused by shutting down of plants to improve environment. As China is a huge consumer of paper packaging products, the price increase spilled over to international market 4)The demands in Malaysia for corrugated products will continue to grow especially Malaysia now serve as Alibaba’s regional e-commerce and logistics hub in South East Asia. 5)Based on the higher demands and selling price of paper mill products, profit margin of Muda should be expanded in 2018 and it may has some export opportunity. 6)Based on estimated EPS of 38 sen, with forward 12-month PEx of 10x, the fair value of Muda is estimated to be around RM3.8. 7)Muda2018 = (Upstream+downstream+trading) X (Expansion+price hike) = High_Profit_Growth
Cost of raw material /waste paper has drop a lot as you can see from the above link, drop of 50% to 70% from in Feb 2018. Finished product are at far above normal prices, look like can achieve RM5.00 very soon.
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....
samyew1234
1,362 posts
Posted by samyew1234 > 2018-03-22 18:23 | Report Abuse
sell