Boss have given the green light to go ahead ... TP1: 1.8 (close the gap on previous drop due to asset write-off); TP2: 2.0 (previous level when USD is favourable to RM)
Due to the worldwide shortage of industrial brown paper, Muda increased their price RM200 per tonnage. Let's do the simple calculation, RM 200 x 40k ( monthly output )= extra profit of RM 8,000,000
no need to explain anything, what i know is someone has enter the muda past few weeks that is why i get into when rm1.50 and more to come anytime it will fly !
Capacity 475,000 tons per annum. If 1 ton can bring additional profit of RM100 per ton, Additional profit ths year would be 47.5 millions. If each ton can bring additional RM200, the additional profit would be RM95.0 millions....:)
I thought the fire in August last year only destroyed the inventory and not the production capacity.... they have claimed the losses from insurance....received 10 million in the 4Q FY16 and 13 million received in Feb this year... and may have other claims on compensation.....
Cost of waste paper went up but the selling price of industrial paper shoot up even higher.... Imported paper is more expensive due to weak ringgit.... Short supply from China....that's why the share price shot up to 1.80 from 1.50 in Feb/March...
Muda also exports their products so they should have forex gains....especially for the perood jan-March 17 when the USD to RM was about 4.4-4.5..They are paper manufacturer with annual capacity of 475,000 tons...Industrial brown paper increased by a few hundred ringgit per Tom. During this period, isn't it?
All paper manufacturers are doing well now.... due to increase in paper prices except those paper and cartoon packaging companies...where the import costs increased...
Muda carried an inventory of rm200 million as of 31st Dec 2016.... So Muda stand to gain in the value of the inventory .as the price of paper gone up ....
I only guess Lah! I am not insider! As industrial paper prices has gone up a lot worldwide....so Muda's as the largest Manufacturer of industrial paper in Malaysia should be making better profits..This was also disclosed in the last Quarter Financial Results....notes to the account ..review of performance....
Besides, 13 millions 2ND insurance claim already received in Feb... this will go straight to the bottom line as losses due to the fires had been absorbed in last FY.
Note the Commentary on Future Prospects: "The current tight supply paper situation in China will reduce the availability of imported paper in Malaysia and boost the demand and sellng prices of the Group's paper..."
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....
ezobear
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Posted by ezobear > 2017-03-08 10:34 | Report Abuse
Boss have given the green light to go ahead ... TP1: 1.8 (close the gap on previous drop due to asset write-off); TP2: 2.0 (previous level when USD is favourable to RM)