Posted by Flintstones > 2018-02-28 21:16 | Report Abuse

Blue hor fun and hairy teo counter dont touch. They are always quite late into the party

Posted by goreng_kaki > 2018-02-28 21:19 | Report Abuse

company share buy back already~~~~
is that undervalued now????
hmmm, let see

Posted by Fabien Extraordinaire > 2018-02-28 22:22 | Report Abuse

how much loss u made, khuen?

Posted by khuen > 2018-02-28 22:51 | Report Abuse

20% loss of the invested capital in tguan T_T
Bought at Jun 2017 and average down in Jan 2018

Posted by cheated > 2018-02-28 22:52 | Report Abuse

Kenanga keep adjusting lower TP from RM 5.67. Why too high before?

Posted by yfchong > 2018-02-28 23:01 | Report Abuse

relax....... come back in 6 months

Posted by Davidl > 2018-02-28 23:34 | Report Abuse

End of Story for Tguan, really disappointed with CFO Mr Ang, we should shoot him gao gao during AGM!

Posted by cheated > 2018-03-01 03:56 | Report Abuse

This ctr already up a lot last 5 years, what to complain? If back to RM 1.5 complain only fair. Many counters suffered more last 5 years under BN.

Posted by samsambank > 2018-03-01 08:28 | Report Abuse

Kesm is a good buy. Its stock price is likely to fly after the next QR announcement. Its outlook is very good after the recent AMG. CIMB's top pick

Posted by Jeff Lee > 2018-03-01 09:08 | Report Abuse

Thong Guan declines to one-year low after weak 4Q but analysts still bullish

Author: moneyKing | Publish Date: 28 Feb 2018, 8:13 PM

Samantha Ho/theedgemarkets.com

February 28, 2018 17:03 pm +08



KUALA LUMPUR (Feb 28): Thong Guan Industries Bhd's share price sank to an over one-year low of RM3.12 after it posted an 81% fall in fourth quarter net profit yesterday as margins contracted in its key plastic products segment.

Its net profit for the three months ended Dec 31, 2017 (4QFY17) slumped to RM2.86 million from RM14.92 million a year ago, as its plastic products segment suffered lower selling prices and higher operating expenses.

The counter lost as much as 57 sen or 15.75% this morning to trade at RM3.05 compared to its closing price of RM3.62 yesterday.

At time of writing, the group pared some losses but was still down 50 sen or 13.81% at RM3.12 and was the fourth largest decliner on Bursa Malaysia after some 3.18 million shares crossed.

At the current price, it has a market capitalisation of RM425.2 million.

Yesterday, Thong Guan said that the compressed margin in its plastic products segment dragged its 4QFY17 net profit down, despite an 8% year-on-year increase in revenue to RM210.49 million from RM195.74 million.

However, two analysts who cover the stock remained bullish on its prospects.

While taking note of Thong Guan’s RM3.8 million food and beverage loss as well as higher promotional and freight costs in the quarter, CIMB Research analyst Nigel Foo said he expects the group to add an additional PVC food wrap line this year as it is already running close to full capacity.

Foo, who has retained his 'buy' call on the stock, is also positive on the group’s nano-layered stretch film lines. He maintained a target price (TP) of RM5.90 on the stock.

“We would not be surprised if the company installs yet another nano-layered film line by end-2019,” he said, adding that the average profit before tax for these lines ranged between 12% and 15% versus 5% and 6% for traditional stretch film lines.

He said the group’s proposed final dividend of eight sen per share in respect of its 2017 financial year (FY17) came in within expectations.

Kenanga Research's Marie Vaz I also continues to like Thong Guan for its undemanding valuations, and pegged an 'outperform' on the stock.

"We believe we have priced in most foreseeable downside risks for now. Going forward, management is still focussed on improving margins and we are of the view that margins will soon revert to normalised levels, while its strong net cash position allows for further capacity expansion", she said.

However, she lowered her TP on Thong Guan to RM4.05 from RM5.55, after reducing the expected core net profit margins to 6.2% for Thong Guan’s FY18, after FY17's bottom-line came in below its expectation.

Posted by hng33 > 2018-03-01 09:24 | Report Abuse

Tguan already initial share buyback

Posted by hng33 > 2018-03-01 09:30 | Report Abuse

TGuan is one of the largest plastic producer. Its revenue keep increasing in view of surge in demand global packaging especially stretch film demand. However, profit margin is compress due to high input cost, resin which is by product from crude oil. Crude oil as feed-stock is under adjustment due to abundant supply from US shale oil and price downward will trnaslate into lower resin input cost further.

Due to time lag factor, Tguan should be able to pass through cost to end user to improve its profit margin forward.

Posted by YiStock > 2018-03-01 10:02 | Report Abuse

Good understanding. Cheers!


Posted by hng33 > Mar 1, 2018 09:30 AM | Report Abuse

TGuan is one of the largest plastic producer. Its revenue keep increasing in view of surge in demand global packaging especially stretch film demand. However, profit margin is compress due to high input cost, resin which is by product from crude oil. Crude oil as feed-stock is under adjustment due to abundant supply from US shale oil and price downward will trnaslate into lower resin input cost further.

Due to time lag factor, Tguan should be able to pass through cost to end user to improve its profit margin forward.

Posted by sell > 2018-03-01 11:16 | Report Abuse

USD 3.9 not worse than Q4 QR?

Posted by Fabien Extraordinaire > 2018-03-01 13:57 | Report Abuse

hng33 always have valuable analysis on the business fundamentals.

just curious why hng33 prefer to adopt the strategy of trading in and out

Posted by Fabien Extraordinaire > 2018-03-01 15:34 | Report Abuse

Fed's new chair Powell sounds more hawkish...if Fed to raise rates more aggresively then high chance US dollar to strengthen

Posted by hng33 > 2018-03-02 10:06 | Report Abuse

sold some tguan at 3.11-3.12, lock transaction cost loss, free up capital to buyback annjoo at 3.61

Posted by Fabien Extraordinaire > 2018-03-02 11:31 | Report Abuse

Stock: [TGUAN]: THONG GUAN INDUSTRIES BHD
Jan 30, 2018 11:01 AM | Report Abuse

The raw material price i tracked for Q4 up by approximately 5.84% compared to immediate Q3 (mainly due to 1 off price surge resulted from in USA), there after the resin price has gone substantially lower and back to norm. Thanks to stable natural gas price.

I think will have some minor impact to the gross profit margin. However, i also expect more contribution in term of volume from new blown lines plus 2nd unit of 33 layer nano machine with better margin in Q4.

All in, i think up coming result should not be bad..but will not be outstanding either. Expecting Revenue to record historical high. Earning should be doing ok.

Share Split in the card?

cheers!



Posted by YiStock > Nov 14, 2017 08:48 PM | Report Abuse X

The raw material price i tracked for Q3 up by approximately 3.1% comparer to previous quarter. I think will have some minor impact to the gross profit margin. However, i also expect more contribution in term of volume from new blown lines plus 2nd unit of 33 layer nano machine with better margin in Q3.

All in, i think up coming result should not be bad..but will not be outstanding either


@YiStock, was the recent Q4 margin compression within ur expectations?

Posted by hng33 > 2018-03-02 11:37 | Report Abuse

sold back all balance tguan at 3.12, lock transaction cost loss, free up capital to buyback more masteel at 1.08

Posted by SamuelLuke > 2018-03-02 22:35 | Report Abuse

Right counter wrong timing, I almost went in when I saw u bro hng33. Next time bro

Posted by yfchong > 2018-03-02 22:36 | Report Abuse

bye bye hng33

Posted by yfchong > 2018-03-03 13:34 | Report Abuse

After complete reading the 4q...... got shock......... the avenue in plastic wrap so huge...... but cannot command good price..... either the product quality so Teruk..... or major profit margin line 33 nano have not set in.... mee business still at infant stage.... no fangs yet.... the 2018 pvc warp line might be so so only..........2019 only come in another nano....if jadi..... these 2 years..... kena pray hard Leah.....

Posted by yfchong > 2018-03-03 13:37 | Report Abuse

Or follow up another...q.... hope the scrap rate is not high.....to command 6 percent margin......

Posted by Fabien Extraordinaire > 2018-03-03 15:07 | Report Abuse

bubba gump is closing shop. F&B business is challenging...it beats me to understand why management intends to venture into this area...

Posted by yfchong > 2018-03-04 13:10 | Report Abuse

....... they r good at wraps... concentrate on wrap
..and mee kering will be good..

Posted by Pgraduate > 2018-03-04 20:25 | Report Abuse

Game over. But will be active once it becomes penny stock..

Posted by Mohd Fahmi Bin Jaes > 2018-03-04 20:27 |

Post removed.Why?

Posted by riskabsorber > 2018-03-06 19:08 | Report Abuse

Since 20 years listed in Bursa, first time Share buyback to support the share price. Get ready my friends to further support until 2.50

Posted by frankie lim > 2018-03-07 10:47 | Report Abuse

so do u still dare to hold tguan share? haha

Posted by jibbie > 2018-03-07 13:43 | Report Abuse

bought today. undervalued

Posted by trulyinvest > 2018-03-07 13:44 | Report Abuse

undervalued... i think rm2 is more valuable

Posted by markgor > 2018-03-07 14:41 | Report Abuse

maybe u guys should buy at 0.1

Posted by xcu843 > 2018-03-07 15:54 | Report Abuse

this counter no more undervalue. It will go below RM2 soon.

Posted by yfchong > 2018-03-07 21:21 | Report Abuse

See this at 2019

Posted by SamuelLuke > 2018-03-08 09:08 | Report Abuse

Not yet...

Posted by YiStock > 2018-03-08 09:39 | Report Abuse

Fabien, is way below my expectation. It was like totally NO cost-past-through.

The gross margin for Q4 had fallen to only 10.9% in comparison to immediate 3 quarter average of 15.7%. Roughly 4.8% spike in resin price; which is equivalent to RM10.1 mil profit roughly, did not pass over to customers. Why no cost pass through? My speculation of reason is the spike is not caused by oil/ natural gas but 1 off natural disaster. I hope somebody can go to question the management in coming AGM.


Together with RM 2 mil forex loss, i would say approximately RM 12 mil of knee jerk in Q4 2017.

Marche restaurant did not really impact the earning i think. I say so because of the
1% different of administrative cost compared to total revenue between Q3 & Q4 2017.

Furthermore, the higher cost could be due to set up cost, thereafter, the running cost should stabilized too.

Anyway, the resin cost has now stabilized. Restaurant already buka for biz.

Conclusion: I hope this Q4 17 is 1 off knee-jerk. Total revenue is still pretty impressive.


Fabien Extraordinaire Stock: [TGUAN]: THONG GUAN INDUSTRIES BHD
Jan 30, 2018 11:01 AM | Report Abuse


@YiStock, was the recent Q4 margin compression within ur expectations?
02/03/2018 11:31

Posted by SamuelLuke > 2018-03-08 13:10 | Report Abuse

Still not yet....hmmm

Posted by xcu843 > 2018-03-08 13:12 | Report Abuse

still dropping, not yet hitting bottom.

Posted by linjie > 2018-03-08 15:26 | Report Abuse

By rm1??? Haha

Posted by xcu843 > 2018-03-08 16:35 | Report Abuse

yes, end of this year maybe.

Posted by shuyin > 2018-03-09 09:26 | Report Abuse

will have to wait next qr to see if it's still worth holding. that loss in f&b, came out of nowhere, no expectation set by the management.

Posted by zzzzz > 2018-03-09 09:55 | Report Abuse

continue down with no support n volume.... scary

Posted by xcu843 > 2018-03-09 10:20 | Report Abuse

normally it needs to down for 2 weeks after report. After that time to in.

Posted by riskabsorber > 2018-03-09 10:36 | Report Abuse

the management know that the share price will keep on dropping until 2.50, that's why they stop share buyback

Posted by xcu843 > 2018-03-09 12:32 | Report Abuse

Maybe good buy when fall 2.60 to 2.70

Posted by yfchong > 2018-03-09 16:13 | Report Abuse

looks attractive..... dun ..... must be strong to take the buy call...nevertheless strecth n warp growth abt 3.8 to 4 % by epert

Posted by Y2016 > 2018-03-09 19:29 | Report Abuse

What is the name of their franchised restaurant? Marche?

Posted by yfchong > 2018-03-09 21:03 | Report Abuse

Movenpick....

Posted by markgor > 2018-03-09 21:51 | Report Abuse

don't guess how much is the price will be, when u see it's value buy just grab it, sooner or later it'll go back to its value. nobody can guess the where's the lowest price

Posted by Y2016 > 2018-03-09 22:13 | Report Abuse

Ok, is Marche Movenpick