THONG GUAN INDUSTRIES BHD is spending between RM30mil and RM40mil this year to expand its stretch film, PVC food wrap and other businesses.
Group managing director Datuk Ang Poon Chuan told StarBiz the expansion would raise the production capacity of the stretch film division to 85,000 tonnes by the end of 2019 from 75,000 in 2017.
“We are also adding two more lines to add two production lines for the PVC food wrap division.
“This will further increase our production capacity by 1,800 tonnes per annum.
In this aspect, this fulfills the Group’s aspirations to continue growing and eventually become one of the largest PVC food wrap producers in the Asia Pacific,” Ang added.
The group is also working on penetrating into new markets in Latin America, and the US. “There are countries in Latin America who prefer to source stretch film and garbage bags from Asian countries.
Investment merits Vision to be RM1 billion enterprise is achievable and will attract institutional investors in due course with a premium valuation.
Sustainable 4 qtrs of net profit after tax with ongoing expansion over the last 18 mths
Rolling 4 qtrs to 30 Sept 2019 PBT, Net Profit, EPS are RM77.285 mil, RM62.906 and 42.08 Sen respectively and share price now 315
In its previous glory day back in 2017 for the qtr ended 30 Sept 2017 Rolling 4 qtrs PBT, Net Profit, EPS are RM69.621 mil, RM58.142 and 33.51 Sen respectively and share price then was 424 at 30 Nov 2017. From 30 Aug 2017 to 30 Nov 2017 the closing share price range 418 to 424.
With current rolling 4 qtrs net profit of RM69.621 mil and EPS of 33.51 Sen to 30 Sept 2019 compared to the LOWER 4 rolling qtrs to 30 Sept 2017 with net profit of RM58.142 mil and diluted EPS of 33.51, MR MARKET WILL WAKE UP TO ITS UNDERVALUATION AND RM4 will be there shortly if Mr Market study history of its share price
Kenanga analyst is always the super lagger, always upgrading target price to chase the stock price. Should be the other way round right? We'll see them upgrading again.
The Group has completed commissioning its fourth premium stretch film production line, a new blown film extrusion line and its 11th PVC food wrap line during the quarter. With the additional capacity coming on stream and the continued expansion of the courier bags and other product divisions, the Group is optimistic to continue its upward trend in sales volume and profitability.
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