You must firm to become a long term investor rather than speculate the short term price,if you return to 2011 if u invest let said RM3000,how much your return after 7 years in term of share price not include dividend.
the coming quarter report sure higher than previous,but i dont think Maxico plant profit will realise this year,for the first 3 quarter they will incurr high operation cost like what happen during 2015-2016 (first new plant operation),so i prefer hold for long term.
1st, the market already established in central america region. Malaysia only accounted for 8% sales. The rest are exported. So there is not much A&P to be done, but maintaining current customer base while expanding supply to cater for new demand.
The most critical factor to move to mexico shud be do with raw material input price. For such case is sugar, because it takes up 50% of the ingredient. By moving to mexico, input cost slash by a lot, and by retaining the same customer base, that is a one time off big profit gain from operational gain.
my concern is since the revenue of F&B still derive from Malaysia currently or may be 2 more quarter,Johotin may not benifit from the suger that you mention in your article (RM1.20/KG),but how about other factor like operation cost,packaging cost,marketing cost (if this factor maintain the same cost as operation in malaysia),than long term sure will benefit Johotin.
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....
keyin
2,150 posts
Posted by keyin > 2019-01-21 12:46 | Report Abuse
Ta analysis downgrade to hold...Mean Holland soon