E. RISKS Volatility in commodity prices. Raw material generally makes up 70% to 80% of Can-One’s cost. Any big changes in commodity prices will result in margin compression as it takes time for the company to pass on costs to its customers. Foreign exchange risks. Can-One’s profitability is subject to currency effects as the raw material it uses are directlyor indirectly quoted in USD. About 35% to 40% of the group’s raw material costs are quoted in USD while the remaining is sourced locally in ringgit. However, its income is naturally hedged as about a quarter of its sales are for export market. Operational risks. Can-One is subject to local and foreign policies that could impact its profitability. Such policies include minimum wage, import and export policies among others. As a manufacturing company, it may also experience operational disruption such as pro-longed machinery breakdown/ accidents that could potentially affect its output. As an established company, we believe that Can-One have implemented sufficient measures to prevent such events and minimise impact of these incidents.
The Group's net revenue for Q4, 2021 increased by RM101.2 million or 15.3% to RM763.8 million. Loss before tax reported by the Group was RM199.0 million in Q4, 2021 mainly due to the following: - Inventories written down of RM26.9 million; and - Impairment of property, plant and equipment and right-of-use assets of RM214.0 million.
alibiii. You have to read Box-Pak quarterly report first in the Review of Performance and follow by CanOne. Impairment PPE & inventories written down is derived from the total value in Canone after deducting Box-Pak's figures.
Not much explanation given on the massive inventory & property, plant & equipment write down.
I personally have written-off this counter. I made >25k the first round. My 2nd strike doesn't look good in the near term. So I'll leave it aside & just collect whatever microscopic dividends they declare.
China-based canmaker Baosteel’s first beverage can plant in Malaysia has started production. Located on a 16-acre site within the Eco Business Park V at Puncak Alam in the Klang Valley of Selangor state, construction of the plant began in December 2020 with commercial cans being made this month (February). The first phase of the RMB461 million (US$66m) project has the capacity..
China invest in Malaysia so that they can dump all their toxic materials in this Bolehland. The Japanese are also doing that now to keep their country clean after the Minimata incident
Variation of results against immediate preceding 3 months ended 30 June 2023 ("Q2, 2023") General Packaging division Revenue of General Packaging division in Q3, 2023 was RM713.3 million, an increase of RM42.2 million from immediate preceding quarter mainly due to increase sales volume in all segments. However, profit before tax of the division decreased by RM25.5 million to loss before tax of RM0.4 million in Q3, 2023 mainly due to higher pre-operating expenses incurred for the set up of a new aluminium can plant in USA, unfavourable movement in foreign currency exchange rate and higher interest expense and partially offset by lower distribution expenses. . . The new aluminium can plant in USA is expected to commence operations before the end of 2023. As a greenfield project, it is only expected to contribute positive results to the Group in 3 to 5 years time.
Yeo family's excessive ambitious in expanding their business empire. They don't really care much about profitability of the business unit unlike the former, See family.
Yeoh family is good at trading and marketing and that's the reason they did well in condensed milk business. What about tin can manufacturing business? obviously out of their expertise.
Its Myanmar aluminium can business has hit the snag due to political uncertainty. The first loss making entity in aluminium can, US is another loss making operations too.
@treasurehunt With a result like that, and with high gearing, and the experienced president leaving, the future is bleak for the group if run by Yeoh family. I will be surprised if their financiers will not be concerned.
Yeoh did exceptionally well in trading and marketing business. He disposed 60% stakes in KingKoil for RM 116 million and condensed milk operations for RM 900 million in 2016. The biggest joke was he went into headache can manufacturing business through acquisition of Kian Joo.
Yeoh made big fortune out of his investment in Can One and Kian Joo. But the guys who helped him left. Whether he and his family have enough expertise to run the business is questionable. The new finance team seems to only know how to kitchen sink it seems….
The can factories in Kian Joo are far more diversed than original Can One. Production of cans ranging from exploiting high speed machine and low speed junks for big cans. Complex and messy. Being a CEO in CanOne is a life suffering job. Hahaha
There was a change in the business profile of Can One in 2019. Post-2019, the average returns over the past few years were lower than the respective cost of funds, implying that there was no shareholders’ value creation.
While the Group is financially sound, there are no signs of improving operating performance.
The Group may be the biggest packaging company on Bursa Malaysia but size alone does not mean that it is a wonderful company in the Buffett sense.
Nevertheless, the market is pricing the company below its NTA. From a brick-and-mortar company perspective, this does not make sense unless you think that its assets are going to be impaired. https://www.youtube.com/watch?v=1f1GKKROsRQ
What's the best strategy for this Co with fluctuating results from good to very bad? Given that its NTA is way above the share price, more so that a big chunk of real estate assets were not revalued for decades - its management should take initiatives to sell pieces of its massive real estate and realise some capital gains.
Use the gains / proceeds to reward the long-sufferring shareholders with nice fat dividends. Some companies have done likewise. Take Apollo for instance. What say you?
After earning from CanOne selling 1/3 on 8/1/17 above $3, 1/3 above $3.50 on 7/6/19 & 1/3 on 24/9/21 @ $3.85, I will wait for disappointed holders to throw all the way down to $1.8 give or take 20c b4 re-purchasing again! 😊
This company is a piece of joke. Loss RM100 mil in a single quarter due to forex loss, albeit unrealised, indicated that their forex management is extremely lousy. There is another RM16.5 million forex loss buried under other comprehensive income!
However with US stengthening now, the unrealised losses will be reversed but the forex management is lousy!
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sangkancil
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Posted by sangkancil > 2021-12-01 22:48 | Report Abuse
根据财报,可口可乐今年Q3的营收增长主要是由于销量的大涨和价格上调抵消了商品和运费上涨带来的影响。
随着新冠疫情相关的不确定性正在减弱,餐厅和电影院消费逐步复苏,消费者们重出家门,带动了可口可乐第三季度销量大增。另一方面,通货膨胀推动了大宗商品原材料成本的上涨,使得可口可乐的塑料瓶、铝罐包装材料和高果糖浆原浆等原材料成本显著上涨,可口可乐在今年4月宣布涨价,将价格上涨的成本转嫁给消费者,以提升利润空间。
这是可口可乐时隔三年后的再次提价,上一次涨价是在2018年,当时公司给出的官方原因是时任总统特朗普提高了罐装原材料铝的关税价格。今年全球其他食品和饮料公司巨头也对产品进行了提价。以麦当劳为例,三季度财报显示,麦当劳净利润21.5亿美元,高于去年同期的17.6亿美元,同样受到了美国大客户订单和菜单的价格上涨的影响。
然而,当前食品企业面临的成本压力绝不仅仅是来自于原材料的价格上涨,更深层次的原因在于供应链危机。