Investing in this company is a no brainer:- 1) Europe quantitative easing to help in the recovery 2) DIY business - repairs and maintenance is a recession proof business (all buildings have wear and tear) 3) Weakening Ringgit (doesn't matter if against EURO or USD) 4) Anti-dumping imposed on China - taking out potentially the biggest competitor 5) Growing production capacity means growing demand and organic growth
safe to invest in this stock ,Vietnam is fast moving economy,thus provide good prospect,and Europeans demand of company's products remain healthy,if time is better,should see higher in market price.
If the borrowings had been hedged, there will be no FX impact on financial result in the end; But I do not know whether the borrowings had been hedged or not.
UP-down u are right, but the Europe sales is affected badly because of the economy there. Other countries' sales also decreased if you see the annual report. Based on the analysis from the annual report, its easy to see that management are quite cautious in FY2016 due to the economic uncertainties globally.
kukukiki. It seems that Chinwel continued to enjoy favorable business enviroment in Europe due to anti-dumping measures imposed on China manufacturers.
Here's the comments of future prospect in annual report 2015.
The European Union (EU) had, in March 2015, renewed tariffs on anti-dumping for the China-made fasteners for another five-year period until 27 March 2020. The duty imposed was as high as 74.1% on imports of steel fasteners originating from China, and was extended to Malaysia-based manufacturers except for nine exempted companies. We are pleased that Chin Well is amongst the nine Malaysian manufacturers exempted from the duty which will undoubtedly enhance our competitive edge.
joe2703. Chinwel is able to hedge USD denomination borrowing worth RM 40 million and benefited from depreciation of RM due to its high Net Exposure financial assets in foreign currency as shown in AR 2015.
Up-down, yeap u are right and it is until exactly the timeline you stated. Taken from chairman statement. I am not so worry about the gearing as they can settle the borrowings if needed.
I am more worried about the coming sales. Chin Well is a good stock and my team is holding it. But its lack of liquidity is the downside of this stock. IT NEEDS to split share/bonus issue. Or else the liquidity is just too low.
I went for the AGM and i really like the way the management do things. They are very honest and admit to things that they did wrong eventhough we did not question them. This type of management is what i called a good and responsible management.
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