The company had cut the losses incurred by Tom Ho Wan and increased the investment in 4 strategic divisions for 2019. The current quarter result shown that the losses had narrowed down.
Due to losses incurred in last 3 years, currently It's share price had plummeted to 0.40 from high of 1.60 which is left with 25% only.
The sales turnover per year is about 1.2billion with 4 divisions contributed almost evenly and with a paid up of 120 millions. Implying that, with small capital doing big business.
Furthermore, the assets were not revalue for many many years! So, if any of next coming quarters that it is able to show some profits, you may miss the golden opportunity for not accumulate now!!
Texchem Resources Bhd reported a net profit of RM2.42 million for its first quarter ended March 31, 2019 (1QFY19), as it recorded an exceptional income of RM4.54 million versus a net loss of RM2 million in the same quarter last year.
The NO brain director has left.... Only the goon director still there The Nippon chairman may decide to quietly REVALUE all the properties.... (as Calvin pointed out like AJInomoto last time)....the only hope for this share to jump to 2 next year
Mkt cap is RM43m only (a portion of its shares are held by its subsidiary). Operating cash flow is Rm32m (basically this is yearly depreciation expense, excluding that of right of use) Free cash flow after paying interest expense and taxes but before capex is Rm12m. This may, just may, improve to Rm15m-20m in 2020 (with closure of loss-making restaurants and further cost rationalisation in all segments) If it can cap 2020 capex at rm10m, it has the capacity to declare 5sen-10sen dividend in Dec 2020, while keeping its net debt below Rm100m.
Wah. They are diversifying into manufacturing of latex glove chemicals. Good.
But The ceo should be sacked. Times were bad in 2019, they still spent RM33m on capex, only to produce loss after tax again. Now, they say company has no money to pay dividend.
Yes, SCGM also doing face shield and share price from 0.80 to 1.85 already fly to sky, but texchem is produce PPE products like latex chemical ,tex-face shield and medical device contract manufacturing but share price only 0.36 and NTA is Rm 1.95.
Texchem fully control by datuk konishi.. They are similar like luxchem.. Just buy some to keep.. Who knows people start goreng.. The price easy to limit up.
Yip_net pls advise the sources of texchem is produce PPE products like latex chemical ,tex-face shield and medical device contract manufacturing,thanks alot
No, Dato Konishi more concentrate on restaurant rather than other section,this cause the profit can not improve.If they can turn the concerntration on semicon ,may be the result wil be difference
The food and beverage industry in Malaysia has become increasingly competitive on weak consumer spending as well as the mushrooming of online delivery services. Nevertheless, our Restaurant Division continued to grow its restaurants from 139 as at 31 December 2018 to 152 as at 31 December 2019. Included in these numbers are our Sushi King restaurants which grew from 130 as at 31 December 2018 to 144 as at 31 December 2019. In strengthening our market position, the Division took steps to rationalize its non-performing restaurants including the closure of all of its three Doutor Coffee restaurants to maintain business viability. As a result, Restaurant Division recorded a lower revenue of RM297.7 million (FY 2018: RM305.4 million) and a lower pre-tax profit (before associates) of RM3.3 million (FY 2018 RM14.1 million). Among the various strategies to boost our market presence in a competitive environment, the Restaurant Division has introduced a new grab-and-go concept for Sushi King, providing on-the-go customers with well-balanced delicious meals in a fast and convenient manner. Our Sushi King apps has garnered a membership of 560,453 as at 31 December 2019 which proves the strength of and consumer confidence in our brand. The US-China trade war has resulted in severe raw material price reduction, unstable supply and demand and keen competition affecting margins. Our Industrial Division cushioned this impact by increasing sales volumes and recorded marginally lower revenue of RM442.0 million (FY 2018: RM445.3 million) and lower pre-tax profits at RM4.6 million (FY 2018: RM5.4 million). The Division ceased its distribution of food additives in Vietnam due to severe competition resulting in pre-tax loss amounting to RM0.4 million. Meanwhile, diversification into the manufacturing of latex glove chemicals is progressing as planned. Polymer Engineering Division recorded a lower revenue of RM203.8 million (FY 2018: RM209.6 million) as well as a lower pre-tax profit of RM0.2 million (FY 2018:RM4.1 million). As anticipated, the Division was impacted by the slowdown in the HDD industry which saw a 9.6% drop in our revenue from this business segment. Meanwhile, our continual non-HDD base diversification strategy is paying off as our MLS business segment reaped a 14.5% revenue growth. Food Division was the bright spark in FY 2019 for the Group where we saw strategies in change management yield positive results. Revenue increased from RM165.7 million in FY 2018 to RM187.5 million in FY 2019 and recorded a pre-tax profit of RM0.3 million representing a turnaround from the pre-tax loss of RM6.5 million in FY 2018.
sense maker,i notice this : starting latex glove chemicals manufacturing.But what item of chemical? because the chemical they produce may be only contain 5% in latex glove.the margin derive from industries section very thin.(from 10 year annual report)If they just start tap into this section ,it may be incurred capital expenditure which will increase cost of sales,am i right.
They are 2 main process in gloves. They called it dipping and wetting process. This normally doing in 2 different process and using 2 different type of chemicals. Texchem is the sole distributor for the surfantant suphynol TG whereby can combine 2 process into 1. Just imagine now the order of gloves is crazy and production is pack., definitely all gloves company want to save time and smooth production. This item contribute very high margin for texchem as the surfactant is superb effective.
We believe that innovation is the linchpin of success; a catalyst for advancements, it breathes life to ideas and invites limitless possibilities. Committed to upholding our passion for excellence, we are immensely invested in R&D endeavours to boost our Divisions and elevate the Group towards greater achievements
Texchem Materials Sdn Bhd [199901012055 (486955-M)] Texchem Malaysia Sdn Berhad [197301002067 (15608-V)] New Material (Malaysia) Sdn Bhd [198901012436 (189744-V)] Lifeon Asia Sdn Bhd [201501006207 (1131539-X)] Texchem Singapore Private Limited Texchem Materials (Thailand) Ltd PT. Texchem Indonesia Texchem Materials (Vietnam) Co Ltd Texchem Food Materials (Vietnam) Co Ltd
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Posted by andry_ong > 2019-10-02 10:11 | Report Abuse
company with asset but no soul