Owners must first take lead....with new clients rolling in....with a bigger warehousing capacity...and with the sarawak market/demand rising....i believe you will c your 30sens again.. All the best friend...
apparently the two conflicting grp r at war openly now. The potential buyers r bad-mouthing the stock whereas the potential sellers r promoting it. The winner will be known latest by the end of next month when the qr is announced, assuming that there's no other news along the way.
hahahaha going to habis soon for this Company's share! It is really amazing that a company with this type of business model can be listed..... What a joke. What kind of fundamentals does it has actually? It really amazes me why it can be listed in the 1st place....!
Remember guys this Company is ONLY a distributor for other companies products and only 10% of the products are its own and only some kind of simple joker product (hahahaha) that can be very easily made by others.
The moment the product owners are not happy with them for any reason they can simply just take the distributorship away and what is going to be left with this Company..... Nothing, nothing at all.
There is NO unique product that it actually makes and owns, only some distribution points and ONLY located in east Malaysia. How can we expect such a company's revenue to grow and how much growth can it make in the long run, not to mention in the short run.
Additional point in fact is that its profit margins are ALWAYS dictated by the principal product owners and can be SQUEEZE anytime to fit their needs. This can be easily and clearly seen in the gross revenue yet tiny net profit.
Final point,.... there remains alot of questions on how the owner manager runs this company to a point where their integrity is being question and dubious accounts preperation.
To me this Company is like the Naked Emperor in the story of the Emperor's new cloths hahahahaha......... Sell Sell Sell Selll Selllll............
KTC appointed many heavy directors and paying huge sum of director fee and remuneration packages and i am curious of theirs performances and this could reflect in current share price from listed (RM 0.38 ) to (RM 0.17). ??? who ever attending the shareholders meeting on 30 Nov 2018. Pls raise our concerns and ask for their business plan on how to bring share price up. Thx
Even though cash flow still looks unimpressive but comparing it end June 2018, it’s a big improvement. They are managing cash flow now. Hopefully next quarter will be better.
After reading their quarterly statements ending Sept 2018, on page 11, they are going to use the proceeds of the remaining 6 million as working capital primarily focusing on their bakery products in Sarawak. It was intended to be used to acquire warehouses in Sibu, Kuching and Miri. However, since they have already acquired Popular Trading Sdn Bhd for 6 mil using internally generated funds, they don't need to acquire additional spaces in the above mentioned locations. Perhaps, that is why they are re-allocating the proceeds to working capital. If they really are going to use the proceeds to improve their bakery line, adding new production line or increase marketing activity, then generally i am ok. However, i would love to see improvements from that section in the next quarter or so. Hopefully, it works out well moving forward.
buying new equipment means expansion on productivity right. can see their revenue on bakery also increase. suppose to be good la in few more quarters. they still have my trust
Generating revenue but still no profit enough for the investor, how are we going to trust them ? The directors got paid millions a year but the investors 0 . Show the investors some sincerity and we will trust you . When your company didn't any make money , the directors should at least get a pay cut until the company are in the right direction . You know there is this chinese saying, "..suffer together in bad times and prosperous together in the good time..this is heng dai " hahahaha !
Generally many executive directors tend to pay themselves ridiculously high, even when companies are not performing. What concerns me the most with respect to KTC is actually the amount of debt to equity ratio (in general term, the gearing ratio). As per the annual report 2018, page 112, it is stated as at 30 June 2018, their gearing ratio stood at 255%! In my opinion, i will regard that as being relatively very high. I can understand if for that year they have made losses due to write-offs, earlier termination of contracts with some agencies, closure of govt convenience stores resulting return of goods to be either impaired or written-off but i hope they will be able to manage their receivables and take care of the debt level. The increase in debt level are mostly banker's acceptance, overdraft, etc which are mainly indicative of cash flow management not effective enough (Long credit terms to creditors but short credit terms from debtors).
Looking at Q1 for 2019 quarter report, i observe some improvements to the cash flow management and i hope the management can continue to show better improvements and hopefully see positive cash balances from operations rather than financing activities.
they also made higher revenue for their Q1 compare to last quarter. looking at it, if they get more agencies to work with them, i beleive ktc can make higher profit
Yungcrystal, this will be very subjective as price is what ppl (investors) are willing to pay for value of something. Value, will more often be tied to company's revenue, earnings, debt level and cash flow. Some may even seek external benefits for value such as Dividends, Free Warrants, Bonus Issue, etc. Business-wise, KTC's earnings has only started to show a positive trend against the previous quarters which they were in the red. However, despite that, their they showed a topline growth in which revenue grows from quarter to quarter. For long term investors that bought into KTC and still holding their shares, they would have a long term view of business growth is visible. Many will argue that KTC's main weaknesses are negative cash flow, relatively higher gearing and mistakes made in the past. Those arguments are also valid, which is why we see their share price being punished to very low levels. However, lessons are learnt, changes to top management are made and last 2 quarters we are seeing turnaround in earnings from red to black. What remains now will be their cash flow management and gearing level. Thus, it is too early to say if their price will rise in next few months, at least i will need to see next few quarter results to see improvement in the above.
When business wrong investments then turn red Xbox difficult to face shareholders then said need long term turnaround la...talk positive revenue la ...talk east talk west after spend big money for own shiok!!!tp0.10!!!!
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....
bunuhsateman
816 posts
Posted by bunuhsateman > 2018-10-17 09:38 | Report Abuse
Labish + holaNd ShArE !