It don't grow much as expected. Despite increase at inventory and purchase/repair machine. The revenue generated still almost same as previous time when just operate old Tampoi factory.
The Group recorded a higher profit after tax of RM13.40 million for the 9 months period end 30 September 2017 compared to profit after tax of RM12.11 million in the previous corresponding period. The Group enjoyed lower effective tax rate for these 9 months as compared to the previous corresponding 9 months due to higher reinvestment allowances in 2017 resulting from new investments carried out by the Group to expand as well as upgrade its production efficiencies.
I believe first batch of Tomypak expansion is aim for Nestle global procurement hub and Ajinomoto new products. Second and third batch might rely new or existing customers. Local market is grow while overseas market is drop. They might need work harder at overseas market.
I have read through the latest 3rd q report, so not surprise on the result. I mentioned before that not to put much expectation on 3rd or even 4th q of FY 2017.
Reason being the old plant is/was going through realignment of its machinery, as stated in the annual report 2016. The realignment would be completed by year end 2017. While I’m not an mechanic expert or insider of Tomypak, I’m not sure how much time would it take to complete the realignment of the machinery in old plant, be it 1 week, 1 month or 1 quarter. The only indication from the management is that the realignment is expected to be completed by end of the year 2017, so worst case I assume by end of December 2017 then only completing the realignment.
During the realignment, there would be very likely a disruption on the old plant’s operation, hence the old plant production for existing order would be transferred to the new plant. I believe we’d only be able to see revenue growth after the completion of the realignment which would likely to happen earliest on the 4th q 2017 or even later on 1st q of 2018.
Second possible reason would be the additional capacity to be taken up by the largest client, i.e. Nestle which only has its third new global procurement centre commencing its operation on 3rd week of November 2017. I believe Tomypak’s revenue should move in tandem with the new order from Nestle amid the operation of its new globabl procurement centre in KL. Looking at other plastic packaging companies which have their financial results encountering a setback in the past few quarters due to challenging environment, I believe Tomypak is not doing too bad as its future prospect remain in tact.
By excluding one off expenses such as maintenance cost for the realignment, increase in depreciation (assuming depreciation only incurs in tandem with new sales), additional cylinder costs due to the adoption of new MFRS standard, these would render the 3rd quarter PBT to be RM5 million, which would be close to the 2nd quarter PBT. As reported in the quarter report, the management is still “optimistic that the Group’s overall performance going forward will be further improved”. I cross my finger that an increase of sales will be on its way soon, be it the 4th q 2017 or 1st q 2018. This is truly a long term investment, we need to be patience like an entrepreneur who is taking time to nurture his business and hope to reap a good profit in the long run.
Revenue per tonne was RM16,400 in 2015. Revenue per tonne was RM16,437 in 2016. Revenue per tonne was RM16,724 in 2017. Slightly improvement at revenue per tonne.
The capacity installed in April'17 "may be" reflected in Q4 2017, additional capacity to be completed in Q1 2018, it looks like FY2018 result would be impressive.
With the completion of the new facility in Senai and refurbishment of the old Tampoi plant, and with the installation and commissioning of new printing and laminating lines, a new film casting line and other ancillary plant and equipment by the 1st Quarter 2018, the Board is optimistic that the Group’s overall performance going forward will be further improved. Barring unforeseen circumstances, the Board expects the Group to deliver a satisfactory set of results for financial year 2017.
The Q3 results is a bit disappointing, but the management clearly explained in the QR that the decrease in profits were mainly due to decrease in gross margins, mainly due to an increase in cost of goods manufactured.
The increase in cost of goods manufactured was mainly attributed to: i) Increase in depreciation by RM798,000 resulting from the commencement of operations at the new Senai plant; ii) Increase in repairs and maintenance and other operating costs amounting to RM634,000 as a result of operating two separate locations as well as refurbishment of the old Tampoi plant; iii) Increase in costs of cylinder expensed off at RM701,000 resulting from adoption of new MFRS 15 which resulted in an increase in earlier expensed off of cylinder as compared to Q3-2016; and iv) Higher financial expenses of RM233,000 for the acquisition of new equipment.
Note that some of the above costs are not repetitive, or one-off expenses, so the Q3 profits could be better if not for such expenses...
Another "good news" is Nestle finally launched its Global Procurement Hub in Malaysia yesterday.
Tomypak has planned and timed their new Senai factory operation start-up and the old Tampoi factory refurbishment to be completed by next month, to crank up their productions just-in-time well aligned with Nestle's GPH commencement.
The Nestle Global Procurement Hubs will soon provide a big boost for demands of Tomypak's packaging materials, for all their markets globally...
really disappointed with q3 performance .....................i saw the revenue, it was like..........facepalm still expecting around 70+-mil ............
Cheer it up. Tomypak is suit for long term investment. I do expect Q3 revenue will increase too. Anyway at least management spend money to repair and maintenance new and old factory. They still at the right path. Revenue definitely will increase once everything is On later.
One thing im glad abt tomypak is low vol trading and quiet low volatility, whole market red red red, tomypak can avoid hit for so long, smtg am really happy about
@Kin Wing thank you so much for your effort for the info you wrote...i am holding tomypak shares a year ago and had been to AGM this year...i was quite impressed by the mgmt especially some comments regarding the company from Mr Lim and Mr Tan...of course...at the current market situation...i am more happy that tomypak share price still able to maintain...quite surprise though...hope to collect some WA at cheaper price but the force is strong...hehe..
sold all, bye guys! hope can see price movement in future and i buy back, changed to penta lately , do consider come over. Bye, its quiet a good ride in this counter.
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....
omgimnoob
514 posts
Posted by omgimnoob > 2017-11-22 23:20 | Report Abuse
Daibochi takes advantage of Myanmar factory, gross margin is so-high! Tomypak has no factory in Myanmar... GG?