The director mentioned that cash was being reserved for "expansion plans" particularly in Middle East, Vietnam, Thailand and Philippines
Is there any potential risks that they funnel out the cash to offshore subsidiaries for their own family and ditch all the minor shareholders by using transfer pricing and loan back methods?
KUALA LUMPUR (May 31): Can-One Bhd’s net profit for its first quarter ended March 31, 2017 (1QFY17) grew 38% to RM15.08 million, from RM10.95 million, as revenue across all its divisions improved.
Its quarterly revenue came in 27% higher at RM260.96 million, compared with RM204.89 million in 1QFY16, its Bursa Malaysia filing showed.
The group said its general cans division posted an operating revenue of RM111.7 million, up 27% from RM87.7 million in 1QFY16, mainly due to higher demand for tin and jerry cans. “In tandem, profit before taxation (PBT) of the division for 1QFY17 improved (180% to RM4.81 million) due to higher sales and better efficiency,” Can-One said.
Its food products division’s revenue also climbed 27% to RM168.8 million, from RM133.2 million a year earlier, but PBT fell 18% to RM12.3 million, due to demand in different product mix and higher sales and distribution expenses.
Meanwhile, the international trading division’s revenue grew to RM24.6 million, from RM9.9 million, thanks to higher sales of dairy products, while PBT grew almost 290% to RM569,000.
Its associated company, Kian Joo Can Factory Bhd, contributed RM5.9 million net profit to the group in 1QFY17, up RM2.2 million from 1QFY16.
On outlook, the group said it is cautiously optimistic on its performance for FY17, as management strives to improve productivity and operational efficiency. It will also work to push sales growth in both its domestic and export markets, Can-One said.
Can-One’s share price slid 0.9% or 3 sen to RM3.43 today, valuing the group at RM659.09 million.
Canone will definitely be revalued soon. Downside risk is low. there are huge plans on the way and those willing to stay will be laughing to the bank.. just hold for a few months, if you cant wait then byebye!
chkhooju, FGV got no stake in Canone. What i want to highlight is the plan to divest some shares in F&B Nutri unit is ongoing. At first KWAP, now FGV. Hope something concrete will conclude soon. Then is good news for Canone shareholders.
Kianjoo business not that good recently and not much contribute to canone's earnings. management should consider dispose the stake as soon as possible and use the fund to settle the bank borrowings and seeking for other business opportunities.
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ArchonInvestment
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Posted by ArchonInvestment > 2017-05-14 21:03 | Report Abuse
http://www.focusmalaysia.my/Mainstream/can-one-holds-back-cash-to-fund-expansion
The director mentioned that cash was being reserved for "expansion plans" particularly in Middle East, Vietnam, Thailand and Philippines
Is there any potential risks that they funnel out the cash to offshore subsidiaries for their own family and ditch all the minor shareholders by using transfer pricing and loan back methods?