True that this counter is wasting time if you hope to see quick capital gain. But you also need to diversify into some good dividend stock like KFIMA who pay about 5% consistently and wait for its day.
The company plans at least one purchase this year and is willing to spend up to 300 million ringgit on a single deal, Roslan Hamir told Nikkei Markets. This will help to partly offset slowing core manufacturing business that currently contributes to 70% of the group's pre-tax profit, he said.
"We are facing stiff competition not just from local but also foreign players" in the manufacturing division, which mainly prints travel documents and stamps for government clients, Roslan said. Increasing use of digital documentation could also affect demand, he noted.
Last fiscal year, Kumpulan Fima wrote off 29.37 million ringgit in impairments for its Indonesian plantation business due to an ongoing legal dispute with authorities on land usage. This pushed net profit to its lowest in five years, despite a rise in revenue.
More than two-thirds of Kumpulan Fima's nearly 30,000 hectares of estates are in Indonesia, home to the world's biggest oil palm producers including Wilmar and Sime Darby. Palm oil prices, meanwhile, have fallen nearly 14% so far this year.
But rising operational costs as well as ongoing court proceedings are diminishing Indonesia's appeal for Kumpulan Fima, Roslan said. Diversifying further into Malaysia-based plantation assets will mitigate any risk of losing right over Indonesian land in the future, he added.
Kumpulan could "potentially" raise net profit by 5,000 ringgit for every hectare it adds in Peninsular Malaysia, Roslan said. This will lift profit at plantation business to match earnings from manufacturing by 2020, he said.
In the fiscal year ending Mar. 31, Kumpulan's net profit dropped 11.38% to 56.73 million ringgit, while revenue edged 1.13% higher on year to 547.21 million ringgit.
The benchmark crude palm oil futures contract on Bursa Malaysia Derivatives for November delivery was 2,711 ringgit a ton. Shares of Kumpulan Fima, which have gained 10% so far this year, are currently unchanged at 1.87 ringgit apiece.
what is "Manufacturing Division's revenue decreased by RM5.45m or 13.1% in the current quarter compared to the preceding quarter. The decrease was mainly due to reduced sales volume of certain travel documents."
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....
Posted by Sureinvest > 2017-06-13 11:48 | Report Abuse
Please take note on the share buy back by substantial shareholder.