Direct marketing firm Amway (Malaysia) Holdings Bhd is in for a good year after it released strong 1H earnings that met consensus estimates, TA Securities says.
Amway's growth will be driven by improving product sales, launch of new products and aggressive promotion, the broker says, adding its robust cash position and operating cash flow may make it an attractive dividend stock.
After certain years in doing MLM business in other companies and not successful, now if anyone want to take up MLM business i will suggest them to start with Amway. I would say Amway is straightly MLM business orientated and giving proper training with good quality products. Even if one cannot succeed in Amway at least he would be a better person in doing business, social skill, team buidling.
But the share price of Amway is different story la
I earn 12cent frm tht short rebound frm rm5.60. Sold all shares d.
1. Amway Still in Long DOWNTREND, they Lose ALOT MARKET SHARES to many ermerging Competitors.
Each competitors targeting their Top20 best sales products, exactly similar quality with cheaper price. Amway fight back by cutting profit margin n reward plan, eat up profit margin, u can see effects from future coming Q reports.
2. Competitors commision structure more attractive, attracting alot talents even from Amway (many amway agents representing competitor agent secretly, open secret).
3. Amway profit DOWN but still pay same dividend, this will END UP MORE DOWN in Shares Price FURTHER..Expected!
1. This is truth, but then you can see that the amway marketing plan at least can sustain. Competition is fierce , but AMWAY brand name and reputation also strong.
2. Agree. But what is the payout ratio ? to pay more to agent, it mean more scarification on either OPEX or the product costing. Other can give more , likely in binary or trinary, matrix plan because of no future consideration on sustainable business model.
3. In order to pay dividend, need to analyze from the cash flow statement part . profit down does not mean company generate less cash for dividend. It is somehow related , but not exactly. Many company in paper lost, but still able to give good dividend due to strong cash flow, particularly from cash flow generated from the operation.
Well finally, share price may up and down due to sentiment, but eventually it will track on company financial performance for long run, which if Amway not able to generate more profit and keep it MLM market share, the share price will be keeping in depress mode until there is big turnaround happen.
Amway profit down, chances for Hai O profit to improve in the coming quarter Oct? = 1%. Anyway, price may be pushed up before results announcement as like recent quarter.
Dicky.....you had choose the right name for yourself...you are really a Dickhead....Delisting? Pls share with us your dicky knowledge how this company can get delisted? Any need to go for capital reduction? Any gearing ratio? Net current liability? How?
RainT, if you would take the time to read 2 page in their Annual Report or even their quarterly report and see any of these words like Hire Purchase, Overdraft or Term Loan....pls let me know cos i could not find them at all in the Annual Report for the past 20 years. The only new item in the report is Lease Liability which arise out of accounting standard MFRS 16 and not due to actual borrowings....finance cost here is the unwinding of the impact of the accounting standard..it was not due to any borrowings at all. The gearing of this company is NIL.
Dividend was paid out of their profit...as as 31 Dec 2019.....YTD PAT is RM51.5m.
impossible to benefit when direct sales is impacted by MCO. without Amway agents going to meet clients, how to generate more sales? Amway still seems like a good company though
As shareholders, we want to be able to assess the impact of exchange rate movements on the bottom line. There have been instances where the MYR had appreciated significantly & I'm jumping for joy. Turned out that they had to some degree hedged the exposure.
I asked several AGMs ago about its hedging policy. The board was reticent in its response. Then I realised why - they probably practiced transfer pricing.
the name of " amway " just let us feel like " old uncle or aunty " business ..... " direct sell " concept no more working for the young people , they tend to do on line shopping .... but definitely not on line shopping amway products......
The liquidity of this stock is too low. The best option would be splitting it to 5x, make everyone can buy and once the trading volume improve I think there will be a better chance for her to move much better.... 11/07/2020 11:30 AM
Amway is in the midst of transforming into "open retail" model. They would launch Amway Privileged Customer before end of this year. It can be a game changer.
Believe is on its track to historical low. MT dim but DY may remains high on dropping share price. No idea if China Amway is part of it, local news is not encourage.
Sales has increased despite all the doom and gloom that agents can't meet client due to social distancing. Based on what i hear from MLM agents, many people are buying immune boosting supplements now. Unfortunately, profit is dented by the exchange rate. Hope the hedged rate will be renegotiated.
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....
danielleesing
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Posted by danielleesing > 2019-10-25 18:03 | Report Abuse
Direct marketing firm Amway (Malaysia) Holdings Bhd is in for a good year after it released strong 1H earnings that met consensus estimates, TA Securities says.
Amway's growth will be driven by improving product sales, launch of new products and aggressive promotion, the broker says, adding its robust cash position and operating cash flow may make it an attractive dividend stock.