Hello Kanter...Ask Sumatec followers...look at that counter now lying in coma stage for almost 3 three years. Same thing been warned over there and people like you quickly came to defend. Those people are now either licking their wounds for not heeding advice.
Last quarter earnings cannot even cover previous three quarters profit loss. Almost break even only. Need to show more resilience, you just cannot talk a stock up.
Since the business of jcy has entering the boon cycle, the financial results for the upcoming several quarters are expected to improve exponentially, the best is do nothing and wait for price to touch abave RM1while enjoying the better dividend pay out compare last year!
Efforts to improve operational efficiency continued throughout the year under review, with RM67 million spent on automation initiatives, and upgrades or replacements of existing facilities. Total headcount has fallen to 12,900, a reduction of 21.8 percent.
Number of worker reduced = 3,590. Assume saving of RM1.5k/month/man, 1 Q saving = RM16mil, or EPS/q = 0.78 cents on labour saving alone.
Last Q EPS = 2.04, guesstimate from WD and info from this forum on 20% increase in shipment, estimated next Q EPS is 3.23. Based on this, TP 0.9 @ PE 7.
Let the Automation initiative bear fruit first. You conveniently ignored compensation for laid off labours and the training cost to existing workers to handle new machineries. Definitely not cheap labour going to man them and the result is certainly not in this quarter.
Thanks for the feedback. I reckon "RM67 million spent" mentioned in the AR include compensation and other costs. If not, we can see it reflected in the next QR in reduced EPS.
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....
strategisst
4,754 posts
Posted by strategisst > 2017-05-09 11:21 | Report Abuse
Let us huat huat huat together....