I will wait end of Apr for the AR to see what management hv to say or maybe end of May to the QR to see the impact. Hope by then the sprint deal not yet go through.....lol....
lol, dont be fooled by dividend, price will be adjusted lower upon dividend ex date. Go check what happened after the 30c special dividend from the disposal of water asset biz, share price never revisit the price b4 the exdate, not even the adjusted price after dividend. Pity those who blindly hold just becoz of special dividend.
E.g if they give 15c dividend due to this sprint disposal, share price will drop 15c . e.g from current 0.78 to 0.63, after that it will continue to go down to 50c, 40c, 30c in few months later
profitable != price sustainable, be realistic pls. there are many co that making good profit but share price keep going lower (im not refer to those cyclical sector like glove XD).
technically, close below 0.78 is a red alert. those holding kps, u better sell if it close below 0.78 because it means the gap up has failed and it will go back to 0.72 to close the gap
EMS raw material mostly from rubber and metal, which both has gone up quite significantly in this year. And KPS EMS profit margin is exceptional thin compare to SKPRES and VS because SKPRES n VS are EMS for high end and well known product while KPS EMS client are small flies low end product.
Not sure if they can fully pass on the cost. The client will also want to manage their cost. Hence, they will nd to absorb some of it and lead to margin compression. Now the most worrying is the labor. There is shortage of labor in all industries cum with increase of min wages. Finally us the manufacturing plant in china. Can't remember where it is located but Shanghai is having a full lock down. Many semicon factory shutdown. Now heard Beijing is also facing the same.
"Toyoplas has three manufacturing plants located in China; Shanghai, Dongguan, and Nanning"
Found the above info in AR. Shanghai is already in the lockdown for the past 17 days and no sight of light at the end of the tunnel. Dongguan also facing the same and many factories were asked to shut down. Not sure about Nanning but I think it will be the same fate even if the open, raw material will be a challenge as logistic has shut down as well. China plant contribute 160M out of 420M of yearly revenue. It is about 40% and is a significant contribution. Prolong shutdown will definitely affect the revenue as manufacturing is top KPS's revenue contributors
when shanghai reopen back price will up lo due to strong demand. unless you are telling us shanghai gonna to close until end of the year. I think likely it will gradually reopen next month aldy.
base on the news above, the three listed Co selling their stake for their highway concession. KPS will be the one benefit the most as no big impact to their existing Biz and profit yet they can have huge cash on hand with realised 100% profit return
KPS is under very heavy selling pressure, about to break below the gap up price of 78c soon. Better sell if 0.78 is broken ! Insider is selling heavily ahead of bad news.
base on my experience, after heavy transaction at open market (very obvious done by the proxy account of the owner), normally will follow by crazy sell down very soon. We shall see
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KingKong_Doll
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Posted by KingKong_Doll > 2022-04-13 15:28 | Report Abuse
I will wait end of Apr for the AR to see what management hv to say or maybe end of May to the QR to see the impact. Hope by then the sprint deal not yet go through.....lol....