Buy more volume then U can earn whatever digits of profit U want......High risk high return. I also had made 6 digits of profit before but not in tis counter..... it is a tremendously stressful oh......
ipo price was down was bcoz ipo chaos and down in qtr earnings which mgmt said due to shutdown..
if u hve faith on its TA & FA, then shud be no worries price up down between 5.00~5.30. petchem also ups down so dont expect ths will shoot up in short period. i bought 4.5 & 5.13.. ave at 4.9. Bought again at 5.07.
For those whom no idea what this cmpny produce, i share here for read.
PP is used to manufacture fibres for carpets, rugs and upholstery, housewares, automotive battery cases, running boards and bumpers, grid-type flooring for sports facilities, fishing tackle boxes, bottle caps and closures, metallised film for food packaging, high clarity thin walled containers and hot filled containers.
HDPE is used to manufacture grocery, merchandise and trash bags, food containers for items such as frozen desserts and margarine, bottle caps and closures, liners for cereal and cracker boxes, plastic drink cups, dairy crates, bread trays, pails, safety equipment such as hard hats, house wrap for insulation, bottles for household and industrial chemicals, milk bottles, juice bottles, and large tanks for storing liquids such as agricultural and lawn care chemicals.
LDPE is used to manufacture food packaging films, plastic bottles for packaging food and personal care items, dry cleaning bags, ice bags, pallet shrink wrap, heavy-duty bags for mulch and potting soil, boil-in-bag bags, coatings on flexible packaging products, and coatings on paper board such as milk cartons.
LLDPE is used to manufacture garbage and lawn-leaf bags, industrial can liners, housewares, lids for coffee cans and margarine tubs, dishpans, home plastic storage containers, kitchen trash containers, large toys such as outdoor gym sets, drip irrigation tubing, protective coating for telephone wires and film, shrink wrap for multi-packaging canned food, bag-in-box bags, produce bags and pallet stretch wrap.
All states in Msia soon will ban the use of polystyrene packing and move to PP, domestic demand for PP will up. Cmpany like SCGM will see their sales up. Do put them in ur watchlist.
Lotte fast tracked its IPO after achieving a one-off financial yr super normal profit. Its listed subsidiary in the Jakarta SX went up substantially due to its TRES derivative. The took the opportunity to ask for the IPO price of $8.00. When market conditions normalised, it could no longer achieve the one-off spectacular result. By the time the qtr results came out, the share price of its listed subsidiary dropped substantially, requiring it to make loss provisions. The water problem is only a small part of the decline in profits.
It may well have dropped a lot, but I do not buy those analyst reports giving at TP of $7 to $8 unless it can achieve those super normal profits. By the second half, new plants in China are starting to add the supply. All in all, it is for the long term.
According to Lctitan published presentation on the commentary of their drop in EBITDA comparing 2Q2017 (259mil) & 1Q2017 (491mil),
Water issue contributed 31% of the decline in EBITDA, TRES valuation loss contributed 27%, Higher inventory consumption impact resulting from post-turaround stabilisation: 20%, Lower net sales margin due to lagged product and feedstock effect: 19%.
The group plant utilisation rate was abt 75%+ to 80% (May- June) excluding the maintenance period & water issue period (Feb, March & April)
Therefore, if everything normalise, the net profit might be around 350-400mil? However, there is another maintenance for their 2nd largest plant @ July. These scheduled maintenance is every 4-5 yrs.
4.30pm now at 5.20. Will hit back 5.3+ sooned than i expected. Even 5.3+ still cheap if coming qtr result 300m-400m. But end FY17 would affect earnings due to IPO expense 100m.By that time TP 6.0 if earnings realized.
RM5.8 still consider cheap, this company is strong enough, the us now are facing natural disaster which affected the country petrochemical production, and the chemical can export to them
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allan83
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Posted by allan83 > 2017-08-29 15:34 | Report Abuse
what price u in? Newplayer286