Hi Khuen. pardon me.. i am wondering.. if the MYR was at the weakest during year 2016 and 2017.. which might not be reflected in the FOREX gain/loss... not sure how much will that affect the profit in 2017? considering latest quarterly result, first half of 2017 dropped 10%, i thought they supposed to increase more because of FOREX gain?
my first share brought when i enter the stock market, tp above RM1 long time ago, now year end look back this share I glad that I tp when i can and go for other stock.
The Board of Directors of Homeritz wishes to announce that the Company proposes to seek the shareholders' approval for the proposed authority for the Company to purchase its own shares ("Proposed Share Buy-Back Authority") at the forthcoming Annual General Meeting.
A Statement to Shareholders containing the details of the Proposed Share Buy-Back Authority will be despatched to the shareholders of Homeritz in due course.
Financial Year 31-Aug-2017 Subject Final Dividend Type Dividend - Normal or Special Description Final single tier tax exempt dividend of 2.2 sen per ordinary share in respect of the financial year ended 31 August 2017 Amount RM 0.022 Ex Date 12-Feb-2018 Entitlement Date 14-Feb-2018 Payment Date 01-Mar-2018
Raw material cost is keep increasing. You can see it hits every manufacturer as well. It depends on how fast they can pass-on cost to the customers, maybe need 1 or 2 quarter's time. Good thing is revenue registered new high again, I think their expansion plan is working on track.
now i know why some company without debt also will cant generate good result... USD is lower against the MYR, looks like coming years will not be a good year for furniture share anymore... how they going to solve the labour issue and whether have any hedging scheme? never see them comment on this yet
Hi SC, you dint do well your homework. Pls read Annual Report page 8:
Foreign Currency Exchange Risk
Most of the Group’s products are exported to foreign countries, primarily those in Europe, Australasia, North and South America, Asia and Africa while certain raw materials like leather, PU, fabric and wood are sourced from foreign countries such as India, Vietnam, Korea, Thailand and China.
The Group is exposed to foreign currency exchange risks as approximately 99% and 70% of our revenue and total purchases respectively are denominated in USD. Fluctuations in USD exchange rate will have an impact on the prices of imported raw materials as well as export earnings, which will in turn affect the profitability of the Group. The Group’s profit margin is generally expected to improve if the USD strengthens against RM which will then increase the profitability. Conversely, the weakening of USD against RM would generally reduce our profitability due to lower profit margin, dependent on the extent and effectiveness of the hedging strategies adopted.
At present, the Group have credit lines for foreign exchange forward contracts with several financial institutions. Should the need arises, the management can readily utilise such forward contracts to hedge the fluctuations in exchange rates between RM and USD, after taking into account the exposure period and the related transaction costs. Further, the Group also maintain a foreign currency account to facilitate the receipt of revenue collections which are denominated in USD to pay for some of our purchases which are also denominated in USD. Thus, it provides some form of natural hedging against any adverse foreign exchange fluctuations.
Notwithstanding the above, there is no assurance that any adverse fluctuations in foreign exchange rates would not have a material impact on the Group’s financial performance.
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....
swordwa2
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Posted by swordwa2 > 2017-11-21 13:20 | Report Abuse
Good result but why price dropping?