What a bomb to the shareholders! Most did not see the profit plunge coming, not to this extent. The market price should adjust down tomorrow by RM1 to RM2.
went to the AGM this morning, this company can't compete in the market because the raw material have to source from the parent company. they already make one level and left is very fine margin to compete. not much prospect in this company. sell and change to better company.
This has been a company propelling itself into blue-chip status, or so its supporters have been lulled by the rising share price in the past few years into believing. Its shareholders learn a painful truth today that transfer pricing by a holding company (in Japan in this case) against its subsidiary (Perstima in this case) can make as well as break the latter. To be fair, the company has in the past few years been cautioning that the biz environment is challenging in all its commentaries. Still, the negative impact from the increase in the input price charged by the holding company, which went uncompensated by a corresponding increase in what Perstima charged its arms-length customers, is very drastic by any standard. We as observers draw a good lesson here too.
steve, lotte latest QR didn't suffer any losses, just revenue and NP reduced. Perstim is similar to Lotte as QoQ and YoY reduced more than 75%. Just that the reasons of lost were differen
The net cash of Perstima is about RM40m, enough to pay for 1 year of dividend of 40sen a share. This is not much. The loss in the latest quarter did not seem to have resulted from an one-off event, but rather management explained it as something continuing into future until they are in a position to improve on the selling price and/ or production costs. It is reasonable to expect dividend to plunge proportionally by round 75% to say 10sen a share a year in coming quarters. The market price should trend further down to RM4. RM7 is quite clearly not sustainable.
For the Current Quarter, the Group recorded a revenue of RM237.5 million compared with RM232.1 million in the quarter ended 31 March 2017 (“Previous Quarter”). The Group’s higher revenue was due to higher selling price despite lower sales volume. The Group recorded a profit before tax of RM3.5 million compared with RM21.1 million in the Previous Quarter. The lower profit before tax was due to lower profit margin coupled with lower sales volume.
For Malaysia, the Company recorded a revenue of RM172.6 million as compared to RM169.3 million in the Previous Quarter. The Company’s revenue was higher due to higher selling price despite lower sales volume. The Company recorded a profit before tax of RM0.8 million compared with RM16.7 million in the Previous Quarter. The lower profit before tax during the Current Quarter was mainly due to the Company was not able to pass through the production cost hike to customer in order to maintain price competitiveness for the period under review.
hmm next quarter and following quarter how ? will it be the same again ," not able to pass through prod cost hike to customer to maintain price competitiveness" ..... =/
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Kok Beng Lee
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Posted by Kok Beng Lee > 2017-03-17 16:52 | Report Abuse
this year can reach 10 .......