It seems like the Board is proactively assessing viable business opportunities through their Turnaround Team 1 and Team 2 strategies.
The company, being no outsider to the China retail & mass consumer based market is a GEM to many manufacturing and FMCG business, not only in Malaysia, Singapore but across South East Asia region. Many know that its always challenging to find your ways to do business in China, so a reliable and go-to local partner is handy.
As businesses picks up, many will ride on the company's network in China (trustworthy partners, locations, access to regulatory as well as business organizations). Similarly, it work both ways.
Distribution of China products in Malaysia, Singapore & other South Asian countries is another key channel i think most people omitted it inadvertently. If Cnouhua can bring in Covid19 related supplements into South Asia, then boom! I think Team 1 in China have the network and access, just timing issue.
I think the other interesting facts on hand are the existing channels available to transfer funds. Think deep and you will catch it.
These are just my Ghostly opinion and it should not be interpreted as an opinion to invest.
Price now is just 6cents. They have been dwindling at this region since July 2012... so about 9 years. Ripe time to bounce back to its glorious days. So good time to keep? yes indeed.
Need to chip in this statement from the Management... cute yet classic..LoL
As at FY2020, the company have cash balances of RMB8.49 million with NO external borrowings.
The Total Current Asset is RMB163.63 million vs Total Current Liability of RMB 2.63 million.
So, they said they can finance their current working capital for the next 24months without sweat...
(well, for the last 9 years = i) what need to impair, have impaired - be it inventory or stocks, ii) need to write off, have written off, iii) need to close down unprofitable business/subsidiaries, have done so and lastly iv) new fresh faces and shareholders are coming in, its still biting the shares from open market)
Potential Business 1 - Trading of Nitrile Glove Business
The management have already discussed and will abort this potential due to the business nature. The Ghost think this is a correct strategy because of the following;
1. ASP have been lowering from earlier SPOT of USD100-120 per carton to the current USD40-50 per carton. (pre Covid19 pandemic - USD20+) 2. Trading of NBR glove businesses - is managed and controlled by certain groups and its not easy to penetrate into it unless you are the manufacturer in which case a lot of wannabe whom earlier wanted to venture into, is now stuck with challenges unknown to them. 3. ESG challenges have been giving a lot of stress to this industry - new cost in compliance requirement - migrant workers wellbeing, strict certification and regulatory requirement, digitalization of automated components etc.. the list goes on. 4. Lastly is competition - The Big 4 in Malaysia is increasing capacity, China is increasing both - new players and capacity, Thailand is increasing capacity as well. Without technology and supreme head start, newbie won't make any inroads into the business, most probably road to meet me @ tingkat -18.
The Ghost is a spirit/soul bystander in the underground financial market. The Ghost can hear conversations, can influence certain undirected decisions and can dictate hearsay without much thoughts to it. We are not a person.
The Ghost loves your sense of humour. Fyi, we applied to extend our stay on upper ground. As such, we will continue to offer our thoughts on this company now before we decide to move to another "worthy" company.
We never charm and we never bite, we gives what we can never enjoy @ tingkat -18. The more joss sticks offered, the more merits we give out to sophisticated readers/investors.
Potential Business 2 - Export of King of Fruits "Durian" to China
The management have highlighted that they are studying this business in more detail. They will deep dive to get more information on the regulatory requirements, logistics guidelines, certifications, pricing etc.
1. Asia-Pacific has dominated the market of fresh durian, with Thailand and Malaysia contributing to the significant share in the total production in the region. Thailand exported a total volume of 496,915 metric ton of fresh durians in 2018, which shows a considerable increase compared to 486,730 metric ton in 2017 and 402,660 metric ton in 2016.
2. The Malaysian durians had continued to be a massive hit in China, mainly driven by the strong demand and consumption from the Chinese. The market was picked up quickly as soon as the pandemic in the republic was successfully controlled. This is mainly because durians from Malaysia are one of their favorite fruits in China. Durians are often sought after by buyers as a special present for the Chinese’s families and friends.
3. The import of durian from Malaysia accounts for a tiny percentage of the market share in China, approximately 10%. Malaysia’s durians are only available in certain major cities in China, such as Shanghai, Guangzhou, Guangdong, Beijing, or online platforms. According to the Embassy’s statistics, China had imported 3,200 tonnes of frozen durian pulps and pastes from Malaysia — which amounted to USD 41 million in 2018.
4. The durian industry in Malaysia shows a huge market potential due to its high demand for both raw and durian-based end products, not only in Asia but also among western countries. Despite the global pandemic, we can see that the market is fairly unaffected and is expected to grow alongside the trend. The market today is profitable, and investors should jump into it if they can.
Based on common available public information above, this food business is a real direction that should be generating interest both in China & Malaysia.
Fyi, we are not Durian lovers. It may look like us, sound like us and smell like us, but its not us.
say many many no use.... important is the operator spike share Price...then retailer will come in... then heng ong huat....but now keep dropping... who Will in?
In our underworld, operators do not work in that manner. There are typically 3 things that you must observe, it could be more but since you are unskilled, look out for these.
1. Who are the individuals who have the most shares? monitor their shareholding and their network 2. How many shares are floated in the market and how much to gain control or rather a need to inform their Board as deemed necessary? 3. What are their current hidden values and what is their forward story.
We are always excited when Hell King makes announcement for our wellbeing. As such, for this to work, they need to build up item 3.
The Ghost.
Extra Ghostly Commentary - What will happen if they announce a RTO from a Durian Plantation owner? A China fintech provider acquires controlling stock so that they can expand in South East Asia? many possibilities because why? understand the 3 items above.
The Ghost recommend that sell your holdings in the company. Better for you mentally and emotionally. Potong kerugian sekarang lebih baik dari dicucuk belakang kemudian.
We think just one price drop would not cause the whole family to fall dead. Even if it does, we are happy to receive and take care of them. We are a happy lot.
Feel free to tinkle us when you are coming. Thank you.
The management didn't elaborate much on this premise when the Malaysian Turnaround Team 2 was exploring its direction in its latest quarterly report. Nonetheless the Ghost can shed some light into this interesting underground tunnel of light.
Fintech relates to financial technology (literally what the banks are offering and you want to grab a piece of the bank's business la) and if the company would like to get involve in this business direction, there are a few "need to" worth pondering parameters.
1. Regulatory licenses/compliance - either the company acquire an existing licensee or they go and apply the licenses/permission themselves. This will take time (longer then you expect), skilled staff strength and cash to burn. Even if you are admitted, you will be in a sandbox. Your hands and legs are tied with very little movement for enjoyment. Further down the road, you need to have your little points of presence in other countries to serve and offer your services (remittances, multi currencies, payment gateway etc). Without a region, you ain't going nowhere horizontally but surely vertically -18 and meet me.
2. Products or Communities - do you drive a community first or create a super app first. Take a look at Grab & Shopee, in my underworld, we have humans burning what we need, not what we want. Creating the use cases can be draggy and it burns money like how you burn for us. Just keep doing it. If you don't have your community, you burn shit all day round. If you have a community but a shitty model, users will stray away.
3. Margins and profitability - deep pockets are a necessity in this game. The bigger e-wallets have burnt substantially to reach where they are today but they can't sustain. There aren't sufficient recurring revenues and PAT. Every Tom, Dick & Harry claimed that there are money to be seen (not made), yeah, some cash flow but where is the real deal? The only possible deal (maybe) is microfinancing... the ah long businesses... started since 0000, still growing strong, be it barter trade, cash, cashless, crypto etc. Lately are the insurance giants....
Unless these 3 main criteria's are visited and discussed, its going to be a long long journey for the company.
However, hearsay that some existing & established competitive players are keen to work out a solution. We will see how it goes, don't trust us please. Trust yourself.
The Ghost commentaries are for long term investors to read, review and understood the impact and consequences if they decide to hold some shareholdings in the company.
It is not a buy call, do not trust The Ghost, trust yourself always. Investors would like to know what is happening to the company's heartbeat and flow of its bloodstream.
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....
GHOSTVISION
126 posts
Posted by GHOSTVISION > 2021-08-04 17:41 | Report Abuse
another 3mil shares today...