Liihen's big customer base is there already, so topline is not much to worry about.
High raw materials and operating cost is always not the main concern, the more critical issue is how fast they can pass-on cost to the customers within the short time. Second is how well their operational efficiency to achieve economics of scale so to optimise the overall production cost.
More crucial is the labour shortage because we won't know how fast they can resolve this issue. Doesn't see much detail on this from the QR.
At least Liihen can sustain delivery of customers orders. Achieve historically high results. Cost might be due to macro factors and outsourcing costs. So that customers won’t order from other ppl. Imagine hevea?
Dont quarrel la....give Liihen some time....any business has its ups and downs. I am not predicting anything....i remain open to all possibilities and react accordingly.
Liihen is unable to influence-dictate their COGS to ensure they can sustain their margin ma....
But soon, FLBHD being the few plywood makers in East Malaysia....would be able to demand the local logs are sold at the price they want to ensure their margins.
Local logs are not allowed to export...meaning supply will exceed demand and their local price will drop!
I think liihen increased market share compared to similar companies hevea, flbhd, latitud, pohuat, etc. all recorded lower revenues thats why higher expenditure to gain market share, which will be positive in the long run.
if you want to select a company can make profit every qtr and can maintain pe of 8 to 10..then the price is not that expensive at current value..if profit surge back to 10 to 12 mil next qtr...the price should go back to 2.7+. a mere 90 days away is it good bet, u decide..u want RM 2, then next qtr result must be below 5 mil...which is more likely?.lets see who is right
If BN continue to rule, what would be happened is Malaysia debts will be more than 1 trillions and country faced bankruptcy..more over cost projects will make country better?consumer sentiment will be better with 6 or 9 percents GST?
All gov accounts must be referred to and checked by certified chartered accountants before making any news. Always refer to professional bodies for verification first.
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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....
ocpd
762 posts
Posted by ocpd > 2018-05-24 21:24 | Report Abuse
Not bad still can increase revenue despite USD hit the lowest point during last quarter. A bit disappointed with the reduced dividend though.