I'd say it's good la, look at the company's results from 2011-2019, before this new management. Definitely turned around and stable already. Net assets per share quite substantial. A lot of retained earnings on their books, maybe will be used for capex and/or give out as dividends some day.
Next 4 quarters will be good -- E&E are here to stay and the packaging for gloves and healthcare will definitely be filled up and necessary. It's only 'not good' if you're looking for super-normal profits -- that one you need to find somewhere else.
@Luke I think you're referring to the new capacity in Sadao for glove manufacturers. Those are supposed to only start contributing in July 2021 according to the group: 'The demand for gloves has accelerated their growth plans, as they recently committed to invest up to RM9m to increase its production capacity by 50% at its existing Sadao plant. According to D’nonce, the new production lines will only start contributing to revenue in July 2021.'
The recent press release affirms this: 'the installation of the offset printing machine for our glove packaging boxes in Sadao, Thailand is completed and shall commence mass production very soon once production trial run is concluded.”
So in conclusion we can look forward to a stable Q2 and a much better Q3 & Q4.
Under the press release, its increased capacity for healthcare is not activated yet plus E and E capacity will be increased soon too. 5 to 6 million forward earnings soon
PE low, net cash, stable profits, future growth clearly in pipeline, beneficiary from E&E and Healthcare. If boring please sell more, I want collect around 50 cents :)
The current price is basically on par with NTA already, very hard to go down further for an asset class like this (which typically trades above NTA because it is profitable).
I would suggest traders avoid this counter, this is a small time syndicate. Dont have the strength to push..... As for value investment bit, I am sure it will fall towards 40 cents as investors gives up on this counter. There is no big jump in profits neither is there dividends what's there for the shareholders?
Anyone has any questions would like to ask Dato Tho of Dnonce? this Thursday we will be having a session with him. Investors of the company should tune in to decide if it's worth holding on longer, adding more, or moving to greener pastures.
Dato Tho did mention that they are looking into it. Personally I think if they know how to use the cash better, it would be better for them to use it to continue growing.
As per what Dato Tho mentioned previously, they are able to pass on the increased cost of materials and freight charges to their customers. You can see the profit margin maintained more or less the same.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3131 views | 3 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
Lukesharewalker
6,499 posts
Posted by Lukesharewalker > 2021-03-22 16:30 | Report Abuse
Projected eps at 5 million profits is 1.5 eps. Forward eps is 6 cents.
PE12 72 cents
Pe15 90 cents
Pe 20 1.20 cents