To be frank, the results are better than what I expected as I expected a bigger loss due to the MCO3.0 restriction on non-essential apparel business.
in the QR, it is stated:
Current quarter results have been negatively impacted by the Movement Control Order 3.0 starting from 1 June 2021 whereby business activities are restricted to essential service sectors only. The operation of non-essential service in the textile and apparel division were suspended and this has impacted the product delivery schedule to the buyers. Besides actively engaging with the buyers on the rescheduling of delivery dates, the Group has seek alternative with the China plant.
Positive sign/surprise is - during this MCO3.0, they have better revenue/sales in Q4 on apparel compared to Q3 (when no MCO3.0): in Q3 - total revenue is 35,371 (without MCO 3.0) In Q4, - total revenue is 38,671 (with MCO 3.0)
What does this mean? they have won more sales orders from customer in last quarter just that they were not allowed by government to operate.
This slapped the face or those haters that they lost business in apparels.
The main reason why they have a loss in the latest quarter is - MCO3.0, not allowed to operate.
Imagine if there is no MCO3.0, I am quite sure they will show positive profit.
Of course another risk is shortage on foreign labor but every company has that issue now.
@Jason - don't simply look at the summary of Profit & Loss table.. everyone knows how to read it.. learn how to interpret the details and reasons behind... See, give you free lessons already.. ok, those who wanna sell off... please sell now.. I want those weak holders to get out of the shareholding...
prlexus has a NTA of 99sen/share, now share price is less than half of its NTA... u think about it.. when they MCO is over and they can fulfill the sales delivery, guess what? u think about it yourself
Reading the financial report carefully, found that Prolexus is indeed very unhealthy. I believe it is inevitable that the stock price will continue to fall. Let us wait for the price contonue decline, and believe that it may even fall below 0.30! Then it's may the good time to collect.
The information as below that written by alvin1188 is wrong.
"Positive sign/surprise is - during this MCO3.0, they have better revenue/sales in Q4 on apparel compared to Q3 (when no MCO3.0): in Q3 - total revenue is 35,371 (without MCO 3.0) In Q4, - total revenue is 38,671 (with MCO 3.0)"
In Bursa Malaysia u don't predict so much and even those expert sifus can be wrong...Even those companies making at the loss can GO up whereas profit making can go lower lows.. all depends on operators what a joke sometimes loss making can GO limit-up!!!!!!!!
Found that Proxmask's local sales in Shopee & Lazada are still quite good. I don't know how their overseas mask orders are now? If the order volume is good, will it soar next quarter? karadis and alvin want to share something?
Anyone who buy prlexus at current price is for its future performance in garments aka pakaian jahitan business. Its facemask business no need bother, just like gloves whatever extra money made is a past issue.
jojo69, don't simply say my information is incorrect. I took this information from the latest quarterly report.
Don't be lazy, go read their latest QR. I don't want to be like a father scolding a lazy son.
in the QR, it is stated:
Current quarter results have been negatively impacted by the Movement Control Order 3.0 starting from 1 June 2021 whereby business activities are restricted to essential service sectors only. The operation of non-essential service in the textile and apparel division were suspended and this has impacted the product delivery schedule to the buyers. Besides actively engaging with the buyers on the rescheduling of delivery dates, the Group has seek alternative with the China plant.
"Positive sign/surprise is - during this MCO3.0, they have better revenue/sales in Q4 on apparel compared to Q3 (when no MCO3.0): in Q3 - total revenue is 35,371 (without MCO 3.0) In Q4, - total revenue is 38,671 (with MCO 3.0)"
The next problem they may face is that they should repurchase their company's stock, not only to stabilize the stock price (this is why it has remained above 0.40 for a long time), but also to ensure that the stock price must be above a certain price.
Otherwise, in the case of insufficient funds (obviously negative cash flow), Prolexus may have to face the risk of being sniped and acquired. This is very likely to happen, because NAPS still has 0.99, isn't it? For those of us small investors, it may be a good thing! Let us wait patiently for the development of the situation!
Therefore, it may be time to hold the ticket in hand, or maybe the right time to enter the venue. Let see if my views in this round are correct or not?
Share Quantity = 276,569,231 Share Price (08/10) = RM 0.41 Market Capital = RM 113 million
35% = 40 million
If the average purchase price is 0.50, then the 35% acquire is only RM 48 million. For a powerful group company, this is not expensive at all. It can immediately be converted into production capacity and create greater revenue. Those who are still growing during the epidemic, when they acquire these problematic but potentially valuable companies will be the key to take off after the epidemic. Believe that these high-quality companies will not easily give up this century's rare opportunity.
Will it happen? I don't know, but let's wait and see.
Does that mean that if Prolexus' stock price continues to fall, the probability of being acquired will be higher? Because for market competitors, they can buy valuable items at lower prices.
If Prolexus does not protect itself, it will be acquired in a shorter period of time. Unless they repurchase their stock as soon as possible, in this way may be can avoid the possibility of acquisition risk?
Understood. So, the continued decline in stock prices is serious bad news for Prolexus. They must look for funds to buy back shares, and keep price up or the company will change the management team. That why you said it's the time to hold the ticket in hand, right?
The largest shareholders are Lau Mong Ying (Direct + Indirect = 20.59%) and Lau Mong Fah (Direct + Indirect = 10.53%), totally 31.12%.
The shares of other directors add up to only 1.39%. Therefore, the number of shares circulating in the market is too much, and the price is low now, the prospects are worrying!
I once said that "BONUS ISSUE" is one of their biggest mistakes! This policy seems to help the company stabilize the stock price in the short term, but it consumes a large amount of the huge profits that are rare in 2020 Q3. This is the biggest failure of their CFO. The potential consequence is that once any group company snipes them, they can't stop them at all, because they have no ammunition. Good luck for them, but it's seem a good new for us as retail investors.
jojo69, before you claimed that someone is not respecting you, please la... u started the nonsense talk of father & son... so I just "returned" the same to you
@Karadis, have you already signed up basic/amateur investment class and studied what it means by "dealings outside closed period"? hahahahahahahahahahaha... whenever I saw this term, I think of you....
The article is only to provide a possibility that maybe happen for discussion, not a summary or conclusion. Let us sit and see anything will be happen if Prolexus's cake is enough attraction?
1. The sniper managed to sell down and lower the stock price before making an acquisition.
2. The sniper has accumulated a certain amount of shares in the market, and took advantage of the negative cash flow of Prolexus to increase the sniper force, which caused them to be unable to defend and then complete the acquisition.
3. No company is optimistic about Prolexus, and no one wants to acquire it.
The possibility (1) & (2) will happen, and it is good news for investors in the medium and long term, because once the acquisition occurs, the stock price will basically rise substantially.
In order to avoid possible risks, Prolexus must support and repurchase its own stock, otherwise once this problem occurs, the company will have to change owners. After all, Prolexus's assets are still somewhat attractive to peers. Then the stock price should be increase also. That why I comment that maybe it's a time to hold the ticket now.
If no company is optimistic about Prolexus, and no one wants to acquire it. And Prolexus also not protect and maintain the price by themself. What will be happen next? As the price gets lower and lower, it will become more and more attractive. Then?
markat seems reversal wave coming anytime soon before next QR, economy open fully running plant output and more cash profits coming in :D :D lets buy more
Although it has risen by nearly 10% since the 8th, it is still optimistic before the release of the next quarter's financial report. I believe there should be growth in the next two quarters. It’s not easy to be worse than last quarter.
heard insiders that some foreign company is trying to swept the shares from the open market!! another big pump coming!! lets hop on for the big swings up
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....
nubiskubissss
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Posted by nubiskubissss > 2021-09-15 12:16 | Report Abuse
hello