Posted by limyauc > 2019-11-08 11:06 | Report Abuse

OPERATIONAL REVIEW

The new management team has implemented multiple operational improvement initiatives this year, with significant positive impact to the effectiveness and efficiency of our operations.

Our main supplier contract has been renegotiated from a high fixed monthly commitment to a lower flexible one. This reduces our risk of inventory build-up during potential seasonal or cyclical slowdowns in the market.

In fact, our profitability in this fiscal year was materially adversely affected by such inventory build-up, which was caused by a major equipment malfunction in the beginning of the year. TWI’s furnace was down for almost a month, during which coincidentally the market price of copper dropped from $7,000/tonne to less than $6,000/tonne due to the emergence of the US-China trade war.

As a result, our average inventory cost increased dramatically compared to the market price, and we were forced to sell our products below cost. At that time, we quickly flew in an expert from our equipment supplier’s headquarters in Finland to fix the issue, provide updated operating procedures, and train our staff on best practices to avoid any future malfunctions. Since then, we have not had any such equipment breakdowns, nor do we expect any in the future.

Furthermore, we have implemented commodity hedging practices using forward contracts and swaps from local banks to ensure that even when we do not have sufficient sales contracts to cover our incoming raw materials, we can lock-in a future selling price based on the prevailing market price at the time. In general, we follow a back-to-back arrangement with both our customers and our suppliers to lock-in the same price to avoid commodity price risk. Our back-to-back arrangement, together with our hedging facilities and our renegotiated supply contract, effectively secures us from any material commodity price risk.

Another major important undertaking this year has been the sale of our old drawing equipment (used to “pull” the rods and wires to reduce their diameter) to make way for brand-new Industry 4.0 equipment to replace it. The new equipment will be much more energy and labour efficient, and will take up a smaller footprint in our factory, making room for future expansion. We have also redesigned and re-arranged the factory to a much better organised layout, providing a better work environment for our staff

Posted by soso9999 > 2019-11-08 12:58 | Report Abuse

so is nice or not nice

Posted by Eddieloong > 2019-11-09 21:15 | Report Abuse

Will next week up again?

Posted by robert168 > 2019-11-19 22:52 | Report Abuse

frozen mode

Posted by goody99 > 2019-11-29 12:03 | Report Abuse

good quarterly result, right?

Posted by Eddieloong > 2019-11-29 15:38 | Report Abuse

Bye bye

Posted by robert168 > 2019-11-29 16:42 | Report Abuse

sleep forever

Posted by goody99 > 2019-11-29 17:20 | Report Abuse

correct me if I am wrong. Tawin reported loss this quarter mainly due to "the expenses off the corporate exercise cost". Excluding this, it actually reported profit.

Posted by Sharkfin > 2019-11-29 17:32 | Report Abuse

Nope is due to soft demand

Posted by goody99 > 2019-11-30 10:42 | Report Abuse

Not sure why the revenue dropped. However, the profit margin further improved from 2% last quarter to 3.2%. This was why the gross profit was roughly the same as in the same period lat year despite the drop in revenue. Also gross profit was the 2nd highest despite the revenue was the lowest of the last 5 quarters!

Gross profit (RM '000)
Quarter ended September 2018: 2181 (revenue: 109,094)
Quarter ended December 2018: -811 (revenue: 94,003)
Quarter ended March 2019: 591 (revenue: 81,204)
Quarter ended June 2019: 1895 (revenue: 104,150)
Quarter ended September 2019: 2152 (revenue: 66,917)

Posted by Eddieloong > 2019-11-30 18:14 | Report Abuse

revenue decrease and still making loss

Posted by Jayson4896 > 2019-12-01 19:15 | Report Abuse

Loss was mainly due to the corporate exercise cost

Posted by BBS > 2019-12-02 14:26 | Report Abuse

TAWIN bcome toilet paper d tipu a lot

Posted by BBS > 2019-12-02 14:30 | Report Abuse

keep announce good news, keep sell share until drop to 0.085
Really so good will sell until so cheap or not

Posted by BBS > 2019-12-02 14:31 | Report Abuse

RI price 0.1 all masuk longkang

Posted by robert168 > 2019-12-03 22:49 | Report Abuse

sell before too late

Posted by Will8080 > 2019-12-04 12:58 | Report Abuse

Sell sell sell

Posted by robert168 > 2019-12-06 16:19 | Report Abuse

wow.. someone start accumulate.. good sign??

Posted by robert168 > 2019-12-06 16:20 | Report Abuse

monitoring the volume.. all also not small

Posted by Surewin168 > 2019-12-07 14:42 | Report Abuse

over sold and under valued kao kao.. just wait for it to rebound

Posted by Surewin168 > 2019-12-08 12:12 | Report Abuse

feel like something going to cook soon

Posted by Surewin168 > 2019-12-08 12:29 | Report Abuse

someone been calling bad in order to let themself able to collect at such low..

Posted by Surewin168 > 2019-12-09 14:50 | Report Abuse

just wait for rebound.. around the corner

Posted by Surewin168 > 2019-12-09 15:35 | Report Abuse

looks back to the QR report.. gross profit at 2m despite the revenue drop. increase of expenses for administrative and finance Costa and cause the lost..

Posted by Surewin168 > 2019-12-09 15:37 | Report Abuse

if the production really can achieve as per mentioned in the report.. this will significant double up their revenue

Posted by Surewin168 > 2019-12-09 15:42 | Report Abuse

off course.. give them another 1 or 2 quarter will see a major impact for the P

Posted by Surewin168 > 2019-12-09 15:42 | Report Abuse

just stay tuned

Posted by Surewin168 > 2019-12-10 09:54 | Report Abuse

look at lonbisc.. pn17 company with financial problem company now also trade at 0.105. do you think tawin worth with current trading price?

Posted by Surewin168 > 2019-12-10 16:21 | Report Abuse

Tawin has been in loss making position over the past 18 months (4 loss making quarters over last 6 quarters but already turned profitable with 8.1mil net profit in the latest quarter result released on 30 August). The reasons of loss making are due to the following reasons:

Existing old machines (more than 20 years) which incur higher costs associated with equipment downtime and maintenance.

Higher administrative expenses (one-off) incurred as a result of the fair value loss on derivative liability and the Group's on-going corporate exercise (completed this exercise in August 2019).

Thin profit margin due to their high cost of their copper raw material (cathode). If they can use recycled copper raw material in their production process, then their profit margin could be higher (due to lower raw material cost).

Posted by Surewin168 > 2019-12-10 16:33 | Report Abuse

Four (4) Keys of turnaround 

2.1 New Machines could contribute higher margin (no 1)

One of their strategies to turnaround from loss to profitability is by changing the old machines to newer and more efficient machines, which can accept recycled raw materials (or lower purity copper raw material). For this purpose, Tawin has proposed right issue and ICPS (irredeemable convertible preference shares) to raise RM35.8 mil (mainly to buy raw materials). This corporate exercise has been completed in August 2019. Let see the details of the right issue fund utilization as below (circular 2.1.6):

Posted by Surewin168 > 2019-12-10 16:34 | Report Abuse

From the above circular, 2  new  additional  manufacturing  lines  with a  total  capacity  of approximately 1200 metric tons per month has been setup. The total costs of these 2 manufacturing lines (including installation costs) is approximately USD1.7 million (or RM6.9 million based on exchange rate of 4.07). Personally I expect these two new productions lines will have higher efficiency and profit margin and  the best thing is the has secured an off-take agreement to sell all the copper rod and wire products of this new production lines.

Remember their existing production lines total capacity is approximately 1000 tons (per month) with revenue per quarter of about 90mil. With the contribution of the new production lines, capacity could increase to 2000 tons per month with possible double up of revenue (higher margin from new production lines).

Posted by Surewin168 > 2019-12-10 16:35 | Report Abuse

2.2 Cyprium Wire Technology JV (no 2)

Cyprium JV was announced in April 2019 marks Tawin first foray into the cable industry, a downstream venture in the value chain which normally command a double digit net profit margin. It will use innovative electron beam irradiation technology (patented) and it is part of the Company’s strategy to capitalise on new and viable opportunities complementing its existing business to drive growth. This joint venture is expected to be operational as of in 3rd quarter in July – August 2019 (Q3 could contribute)

With 80% ownership of the newly set up Cyprium Wire Technology SB, TaWin is the first and only Malaysian company to commercialize this technology. The competitive pricing and lead time as compared to foreign competitors are some key advantages of this downstream product.

Posted by Surewin168 > 2019-12-10 16:37 | Report Abuse

2.3 Increase export ratio (no 3)

Tawin has increased their local and export market ratio from 80:20 to 60:40 level in 2019. Their target is further increase this ratio to level of 50:50 to ensure that the company continues to grow and can have a more natural hedge of their currency risk.

2.4 Internal Operations Improvement (no 4)

Tawin has designed a capex plan to replace old machinery in order to improve efficiencies on electricity cost, labour cost, and maintenance cost.

Posted by Surewin168 > 2019-12-10 16:41 | Report Abuse

Current price of Tawin is trading at near 52 weeks low (12 sen) and if they can turnaround in 2H of 2019, then downside is limited due to I expect is it likely to turnaround based on their new JVs (international and local) and internal efficiency improvement.



 

The new management taken over the company since end of year 2017 when tawin was still trading at 1.00 (after adjusted price still about 35-38 sen now).

Posted by Eddieloong > 2019-12-11 12:00 | Report Abuse

No show

Posted by goody99 > 2019-12-11 23:19 | Report Abuse

Did anyone attend the AGM? Please share...

Posted by Eddieloong > 2019-12-20 14:56 | Report Abuse

Fake buyer come again

Posted by Will8080 > 2019-12-21 18:06 | Report Abuse

Seems like collection period is gonna finish... should be pushing up time soon...

Posted by soso9999 > 2020-01-02 19:25 | Report Abuse

Always same trick

Posted by de_yangtulor > 2020-01-29 22:21 | Report Abuse

When to shoot again....like others stocks...

Posted by de_yangtulor > 2020-01-29 22:22 | Report Abuse

Pls collect this stocks...

Posted by Eddieloong > 2020-02-11 20:11 | Report Abuse

Wow,COO resigned?who still have this con stock?haha

Posted by HuatHuat > 2020-02-14 17:30 | Report Abuse

Y no ppl goreng up

Posted by jgp1703 > 2020-02-25 10:14 | Report Abuse

all stocks go up only this is dead....sigh

Posted by Eddieloong > 2020-02-28 19:19 | Report Abuse

Will it down to 0.06 ？

Posted by Jayson4896 > 2020-03-03 20:26 | Report Abuse

Still can alive?

Posted by kenneth_lbw > 2020-03-13 13:00 | Report Abuse

will down to 0.20?

Posted by goody99 > 2020-03-27 00:30 | Report Abuse

slowly slowly no problem... no need to go up fast

Posted by 010855 > 2020-04-13 12:36 | Report Abuse

Up up up

Posted by 010855 > 2020-04-14 20:14 | Report Abuse

Slow up ok...