Think about it. Its Vietnam factory had been locked down since mid July to end of October 2021 (as per Vietnam government lock down announcement). So you could expect a bloody red in Vietnam operations. Malaysia lock down since early Jun to mid of September. Again, you could expect a bread-even in Malaysia operation given there is 1.5 months of operation. So, in total, there is almost no way to be in profitable in their final quarter ending October. As per LiiHen announcement, we could imagine the same challenges in Poh Huat operation, i.e. increasing raw material, labour shortage, transport issue and worst still, the supply chain disruption. So, it is lack of near-term catalysts.
Please take note seriously.....As per LiiHen announcement, we could imagine the same challenges in Poh Huat operation, i.e. increasing raw material, labour shortage, transport issue and worst still, the supply chain disruption. So, it is lack of near-term catalysts. Don't expect to report any profit in 4q. (A small loss is a bonus). Challenging road ahead. Don't play play. As Chinese saying : there are plenty of flowers out there, why only focus on one"
"The Malaysian operations have been restarted. Productivity is being increased following a 3.5-month suspension of operations from 1 June to 10 September 2021 due to movement control restrictions. Meanwhile, management indicated that the Vietnam operations may incur a loss in 4Q21 due to the suspension of the manufacturing plant since 19 July 2021. This is due to the Vietnamese government's implementation of movement restriction measures to contain the Covid-19 outbreak. Meanwhile, the group has applied for wage subsidies covering up to 75% of the basic salary of its Vietnam employees. At this point, all its workers in Malaysia have been vaccinated. In Vietnam, 90% of workers had completed the first dose. "
@bullrun. Just do a simple calculation. Assuming it can break-even in its final quarter 2021 results, its EPS for full year will be 13.49 sen (This is very good). Assume industry PE valuation is 7x, its target price is only 95sen ! Let's say u wanna value it at 10x PE, then it is RM1.35 (which is what the market is expecting at current level)......and u know this figure is very optimistic !
@bullrun1985, still ask ? Look at price chart. When they announced their final quarter results last year, what was the price ? (answer : around 1.70). What was the price when they announced the 2q results last year ? I use 2q results because it was normally the weakest quarterly results. (answer : around 1.20). And 1.20 was the price before covid selldown in March 2020. So the best case scenario should be RM1.20 level.... I have analysed both from fundamental, technical and market expectation angle.
shouldnt judge price based on past qtrs thou, prices are forward looking, so 1.2 was baking in bad expectation for current qtrs, which has turned out to be true; now prices are back up bcuz it is expected that things will recover, nevertheless cheers cherry, I have a diff time horizon so still planning to hold/accumulate
Never touch any counter which is over 50% hired migrant labors because the rules have changed for counter like this , previously hired as many as foreigner would really benefited company but now it will only drag down the share price atleast 50% if targeted by western countries n need to bear for the highest ESG cost for foreiners ! Poh huat share price is quite high now , buy only around rm 1.00 make safe !
the goreng thing is merely gimmick to push up shares. Pohuat does not significantly supply for Malaysia market. According to their report, only 10% for Malaysia, Singapore, Middle East and UK. Bulk of their sales are derived from Canada and US at almost 90%.
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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....
zen_2k
617 posts
Posted by zen_2k > 2021-10-28 01:14 | Report Abuse
@RainT then bohbian lo, sell and invest in stocks u see are well in NASDAQ or NYSE then