KPS revenue depends heavily on World Wide Electronics Demand....Both Toyoplas and CPI revenue leap when eMCO was Over....Combine Toyo & CPI, it is much, much Bigger than Genetech Revenue....Genetech is Not even a Electronic Co...basically it is sub-contractor making Conveyor system to Link up manufacturing machines (bought from different manufacturer) But is very small Cap....therefore cornered syndicate to RM38. However KPS free float is also very small ( most people doesnT know ) Bcos Selangor Gov holds 70% of 537mil shares.....I think less than 100mil free float after minus Top 30 holders
both CPI n Toyoplas profit margin is freaking thin, they cant ever hit the profit guarantee during KPS acquisition. Worst still, the profit margin keep declining, CPI is doing very badly compare to Toyoplas. So basically KPS is hopeless.
Rasau Treatment plant will provide Long Term Biz to KPS in Supply of Water Treatment Chemical. The water collected for this plant is overflow water from River and Rain Water collected in Mining Ponds-----extremely polluted and Dirty Water. The amount of chemical required will Triple current requirement at 91mil / year ( RM270mi )
Without lockdown in 4Q, it is expected KPS revenue should hit 430mil and expected profit of 35mil. Expected Dividend is around 2.5cents..
KPS strength in Rasau projects are mainly piping and supply of water treatment chemicals... Taliworks has being maintaining similar water treatment plant for Air Selangor And also a main Contractor for a few similar projects in China and Asean region ( Tali has experience )
lol, u forgotten raw material up a lot, EMS as very low profit margin especially toyoplas n cpi which always underperformed compare to atech, vs and skpres, earning will be positive but will not be good at all, maybe few mil to 10mil+ at most.
Why USA has runaway inflation? 70% of all US consumers are imported, mostly from China. All China consumers and Industrial export to USA has increase price by 12% ( mine increased by 15% )---Surely KPS industrial products will increase at the same time-----Looks at last Qr results, 60% operating Hours for 1/2 of last Qr And KPS register 28mil Profit..
If KPS industrial DidnT increase Sale Price, How to get 28mil profit
Next Qr. there is NO LockDown, KPS's Penang Industrial Stamping are running at 100%( my boys have visited KPS Penang and asked for some quotations on Electronic parts )
Looks Nylex's Qr results ( Qr starts in Nov ---No more lockdown ) Nylex biz is everything polymer or consumer plastics---cover a broad base Industrial polymer usage---" very impressive turn- around Qr 2,200% "
Do expect KPS next Qr results to be same as Nylex ( KPS main Biz is Cement Bag, Consumer Electronics Plastic, Carton Box ) The trend is same as Nylex
nylex profit mainly from petrochemical , dont mislead ppl please. KPS earning will be bad due to raw material increased, thats wh reason why KPS new subsidiary CPI and Toyoplas is doing badly.
so what do you know about Nylex to make such a comment?? Almost 600mil revenue are mostly from making chemical for Vinyl floor mat ( kampong staple ) Polymer are mostly for farmer netting and GeoMat for mountain slope and Construction facade covering---when Kampong people starts spending---it means their son has job, Palm Oil / Rubber has Good price ( Economy moving----Good for Industrial supplier like KPS )
KPS suffers more losses during Lockdown Qr bcos of NO production rather than raw material inflation----Everybody adjust for raw material inflation regardless what Industries or farming. Just estimate how much your Wanton Mee / Beef Noodle price has Gone Up.
When Covid is in Full Swing, KPS has to secure Buyers Order ( limited ) so they sell at Loss. When Covid is over, Buyers are chasing KPS for supplies. Why should KPS sell at Loss??
The Trend for the entire Industries is the same ( IC chips and Gloves )
LcTitan plastic resin products QoQ up 285% ( last QoQ is terrible ) Usually Resin producer is last to make profit during economy "upturn" bcos they cannot increase price rapidly----Finished product Manufacturer like KPS is always First to register Profit. Last Qr KPS register 28mil profit. If KPS register 50--60mil profit for next Qr------Do expect 4cents dividend
day dreaming, KPS earning depends heavily on Toyoplas and CPI, however these 2 subsidiary earning has been disappointed, way below its profit guarantee. I predict KPS QR will be around or even lesser than 28mil.
good for malaysia but bad for manufacturing where raw material derive from oil, KPS's CPI n TOYOPLAS margin already very thin, raw material price up will even depress the margin, probably these 2 co will start losing money soon. And if that happen, KPS earning will be extremely bad becoz other biz of KPS is making huge losses. Can expect a 20-30mil loss per Q
From last year till today, steel materials increase by 30%--60%. I saw in the Contract, no VO, or cost adjustment allowed. Most likely Taliworks contract will either loss money Or just breakeven. KPS is better off supplying Chemicals, pipings and EarthWorks. If KPS received any contracts, it is better later than first to receive (atleast movement of raw materials can be adjusted or procured First) I think Air Selangor CEO is helping KPS in this respect since current CEO( air selangor) is also previous CEO of KPS
kingkoil not making profit becoz raw material up like no tomorrow and kingkoil not able to pass the cost to consumer. Toyoplas n CPI also facing margin depressed due t sky rocketing raw material. very ugly QR ahead
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Posted by chkhooju > 2021-12-04 12:09 | Report Abuse
One down. Two more to go, bigger ones.