For me its a very good result as when we compare it with the previous year, there was a loss of 1.9 mils. Hence the result can't be said as weak as there is a continuous improvement in the revenue.
Q 1.Capex A. This year will continue incur capex mainly for new factory set up at Pasir Raja and renovation of few existing factory. (Continue expand for capacity start from last year)
Q 2. Kindly explain and provide breakdown of 30million trade receivable issue which consist 20% of total asset. Kindly explain why the amount of long due trade receivable (refer to aging) is quite high and chance of become bad debt. A. Among the Trade receivable consist big 10 customer from china and Indonesia. The customer have 5 to 10 years relationship with company. Low chance to become bad debt.
Q 3. Transfer to main board issue. A. Management start to discuss with Hong leong Bank for the main board transferring. (They will announce if really transfer)
Q 4. Dividend issue A. Company will slightly increase dividend payout since current stage still need fund to growth further.
Q 5 Grant income A. Not direct impact to bottom line since the grant income in reimbursement basis and for R & D purposes
Q 6 Tax incentive A.The farming side and manufacturing side still got respective tax incentive. Tax expenses will not high in these few years.
Q 7. Pharmacy retail business A. Initial plan last year is commerce 30 outlets. Nevertheless, company manage operate up to 15 or 16 branch up to date. Plan to set up 3 more during this year.
Q 8. Farming progress Total area of farm 1304 acres Pasir Raja Phase 1: 124 acres planted at 2015 Phase 2: 880 acres (Plan to fully planted this year)
Desaru Phase 1:100 acres planted at 2015 Phase 2:200 acres (Fully planted this year)
The herb normally take 2 to 4 years to be harvest (depend what type;the fastest will be 3 to 6 months. The most longest period will be durian, coconut which require 4 to 6 years)
Around 200 acres herb can be harvest at 2018. Desaru farm will be start breakeven this year and Pasir Raja mostly will start breakeven next year second half. Year 2020 will be the peak for the company for majority herb to be mature.
Q 9. Indonesia market status A. There are two type of product line of Indonesia factory 1. Functional food- already success in registration all the products. Product start selling this year but profit contribution not high 2. Herb –Plan to get registered in next 3 months (Higher margin)
Q 10. China market A. Quarter 1 china sales drop due to many festival such as CNY. The selling and distribution cost at china would not be high as the cost bear by distributor.
Q11. Nature disaster management for the farm A.The location of farm is located at high hill, the herb would not will be affected. However, the road access to the farm will be flooded.
Q12. Growth prospect A. Few big customer are under negotiation at current stage for the ODM segment.
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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....
yap50
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Posted by yap50 > 2018-05-30 09:55 | Report Abuse
move to mainboard seem just a tricks now....