I have seen many cheapskate like flysmart in I3 there are everywhere, making a living by creating negativity for just small sum, pity him need to support wife and kids that way.
Waste paper cost in China 2700 yuan that’s 2700*0.6=RM1620 while selling price of corrugated paper in China average 4400 yuan and that’s is 4400*0.6=rm2640 , the difference between corrugated paper and waste paper is RM2640-RM1620=RM1020
The RM1020 above consist of profit element and processing cost to convert waste paper to corrugated paper per tonne in China.
Now we look at Muda, their waste paper is 30% imported at RM350 to RM450 per tonne and 70% Locally at RM650 per tonne, so their cost average is (350+450)/2*0.3=RM120 and 0.7*RM650=RM455 giving average cost of RM120+RM455=RM575 (This is the waste paper cost for Muda)
Cost of conversion from waste paper to corrugated paper is about RM1020 (we assumed the RM1020 above is all cost and does not include profit element) so the cost of Muda to process waste paper to corrugated paper is RM575+RM1020=RM1595
Muda capacity from their website is 500k tonne and per qtr. is 125k tonne, if we assume the selling price is RM2450 (which is RM190 less than the price in China) , the margin per tonne is RM2450-RM1595=RM855 multiplies by 125k tonne per qtr. is 106.875Million gross margin per qtr. If you look at the recent qtr. report, their below gross margin cost is about RM48Million (fixed cost/administrative cost)
Therefore the profit before tax would be about RM106.875-RM48=58.875Million (should be higher profit since I have reduced the selling price by RM190 and processing cost of RM1020 should be lower because of profit element) that’s 58.875/305=EPS of about 19 cents per qtr.
Muda has RM1045 per tonne waste paper cost advantage, If Muda don’t report this EPS, don’t know what to say.
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....
rojakmee
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Posted by rojakmee > 2018-07-23 22:53 | Report Abuse
I have seen many cheapskate like flysmart in I3 there are everywhere, making a living by creating negativity for just small sum, pity him need to support wife and kids that way.