the problem is not with the water outage, the problem is that this massive drop in operation income was not communicated to the public properly when it IPO. and just days after IPO the bombshell was drop on the shareholders. people rightly feel they are getting conned by the management and lose confidence in the counter. the price drop is reflection on the lost of confidence not the one off outage event.
Cannot blame M'sians. Cheap shares nobody want. They think expensive shares(eg Lotte, Hengyuan, PetronM, Perstima) are good quality.
gcke @Jeffreyteck the water shortage issue happened in April 2017.Caused massive disruption to the normal production which have a direct bearing on the profits earned for that quarter.Such information and event are material facts.The adverse implications arising from such event should have been properly disclosed to all the public subscribers- institutional and retail investors.Think they should have done better but failed to do so.Simply complacent and dereliction of IPOs proper governance. 01/08/2017 18:12
Result bad is only limited to recent release Q2 result, EPS 6.58sen as Lottie still deliver commendable first half total EPS 26.38se, implying Lotte did record very good set of result in previous Q1 result as much as 20sen earring per share
If without anymore shutdown due to one off water outage that happen in April, Expect lotte should be able to deliver normalize EPS forward in next Q3 and Q4 result.
Investor already priced in the EPS 26.38 or 26.38 x 4 = 105.52 And that is why we have a TP of 9.00 :) Now with eps 6 only investor should revise their TP again?
@hng33 whether you agree or not in the immediate term the confidence and trust of the marketplace on this share counter has been battered badly. 2.Huhuhu...you think so simply that the trust and confidence can be back or restored so quickly!. 3.Past examples showed not so soon.It takes sometimes for the market-place to change the perception from negative to positive.
Outcome: Negativity on the stock price still has some room to go,possibly.
Like that EPS even lower. So TP must adjust even lower?
Posted by i3gambler > Aug 1, 2017 08:52 PM | Report Abuse The 6.58 eps is base on 1.7 billion shares before IPO, the total number of shares after IPO is around 2.3 billion shares, if not mistaken?
The ultimate goal in stock market is to make profit from share price different between entry and exit price. Portfolio second round entry now at 4.35+, and I confident portfolio can make good profit in sooner time :D)
Remark, the first round was enter at 4.25, exit at 4.49 for gross profit 24sen/ share. Let's see what profit margin for second round trading later
In many matured and developed equity markets like in Japan,USA,UK,EC,South Korea many of these public listed companies will communicate and disclose material information with their stakeholders and shareholders. 2.Last year for examples Apple and Samsung issued their earning WARNINGS for the coming quarters.The markets initially responded during the next open trading days by selling down the stocks but the adverse sentiments were well mitigated and absorbed.No sudden market's jerk downwards on their stock prices later when their poor QR were announced.
That should be the way how investors' relationship needs to be managed.Transparency and clear communication built up trust and confidence on the stocks.
TP 3.50. If compared to Protasco Bhd's Chong Ket Pen lies about his wrongdoing in manufacturer blame to win himself Protasco control, Chong Ket Pen looks smarter than no water excuse. At least Chong did not says no oil. Lololol
This is actually a con artist organisation, at 1st they try to con rm8.50, but ppl scare, then discount and warranty by tiger to gain public confidence... Then only start to cut shareholder meat slice by slice like eating sushi.. ;) it ll keep drop until rm3.50 after look into their financial reports and their weirded expenses.... That's why I call for run yesterday but no ppl believe me... If u still believe that next Q ll be good, I can tell u it is impossible... Factory line with mature development won't have much margin to increase ... They only ll think how to burn company cash buy weirded expenses ... Gods bless
Stabilizing agent? Stabilize what? Jokes of the year. The stabilize agent keep on fxxxx behind the scenes! Sudah jadi the stupidest gong lan for the yr, and no choice to keep on burn money! That's what I call stupid. Stabilize agent useless lah!
The pump & dump HengYuan? Some biker gangs decided to save own face and gain at the expense of retailers? After the con jobs conning the retailers into believing it? Woah...look at how it's free falling now. A CON JOB IS DONE BY BIKER GANGS. LMAO
Pinkyplane u better go do another con job and get caught red handed. SC has issued UMA on HengYuan and u better be careful not to be "KENA TANGKAP"! THey got a copy of those involved loh. Those not involved is safe lol
Better don't delete your articles like last time u deleted all your bragging comments overnight so the world can see how expert sifu u are now. What was the reason u DELETED ALL YOUR PREVIOUS BRAGGING COMMENTS leh? U coward! No integrity loh
e water shortages were largely to blame for LCT’s shockingly poor second quarter ended June 30, 2017 (2QFY17) results, something that many analysts and fund managers did not anticipate because LCT’s management did not flag it as a potential concern. Compared with 1QFY17, earnings before interest, taxes, depreciation and amortisa- tion (Ebitda) fell by 47.2% to RM259 million. Approximately 51% of the fall in Ebitda was blamed on the water shortage. “We did not know that the water disruption would have such an im- pact on our bottom line,” Lee told e Edge Financial Daily in an ex- clusive interview yesterday. Lee assured shareholders that the 2QFY17 results will not af- fect the earnings in 3QFY17. However, 3QFY17 earn- ings will be dampened by a scheduled turnaround of another plant, NC1, in Johor between July and August. The impact on other parts [of the operations] was not discussed in detail because it could not be quanti ed at that point in time,” said Lee.
from the edge daily.....omg....got another plant also suffers water shortage and will impact next quarter results...no wonder all the fund managers and analyst hiding...really brace for Rm3.50
This is a con job by the koreans. How u look at it...there is no integrity loh. Why before IPO they tell tall tales and after IPO then all hell breaks loose? Don't play with it loh if not u will be like Bananaman ChongJiauJau disappeared from here loh!
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Posted by nikicheong > 2017-08-01 19:36 | Report Abuse
@hng33, don't believe such crap lah. Retailers should rightfully feel cheated because Lotte downplayed the impact of the plant shutdown.