BactiX Surface Disinfectant is the latest disinfectant product of DPI Sdn Bhd which is a manufacturer of aerosol spray products.
Due to the company’s concern for a clean environment, BactiX Surface Disinfectant was introduced. It acts quickly to eradicate germs in contaminated area.
This product is guaranteed non-flammable, alcohol-free and has a long-lasting protective effect.
More interestingly, it acts and kills 99.9 percent of germs and bacteria.
Q1 2020's revenue is 15 million and profit 3.3 million had already over performed all quarters in financial year 2019 ; if you use 15 million x 4 quarters , it is 60 million which is 50 % above last year financial result . Let's assume company can earn 3 million every quarter in 2020 , which is possible due to venture into sanitiser sector then profit in 2020 will be 12 million which is 100 % over last financial year net profit ; the beauty of this forecast is , we didn't see any capex mentioned in the quarter report; if a company can use the existing capacity to produce more products and it doesn't incur additional cost which the save of cost will turn into profit ; In my humble opinion , this is a good company and the share price will reflect the growth eventually.
Masteryoda want to make everyone rich after CMCO.Pls buy ASB (1481) now when its low at 0.165.I just bought 1000 lots.Before all this Anwar nonsense,ASB was already a 0.14 stock and it is way way way undervalued bc if you look at ASB financial it is fundamentally very strong with very low debts.Now with it being linked with Anwar and this blardy Anwar wont stop trying to be PM until he die i really think the downside to investor is very low but the upside can be explosive.The dark side clouds everything. Impossible to see the light, the future is.” – Yoda
Q2 should be stronger than Q1 , recent sustained buying pointing to a near term rally. My third venture , 17 to 19 round 1 , 20 to 28 round 2, round 3 30 to 40? Staying put from 17 would have been better
Hobbyists keep demand high for Samurai 2K Aerosol spray paints in pandemic; new products in pipeline.(Source from The Edge Singapore - Nov30 2020)
Many businesses have seen a drop in sales and revenue during theCovid-19 pandemic but one Malaysia-based aerosol paint manufacturer saw a surge in demandand sales of its products instead. “During the lockdown periods, people spend more time at home, so they turn to DIY activities at home. In our case, our consumers were motivated to spray-paint their vehicles. That’s why Covid-19 did not really affect our business,” CEO of Samurai 2K Aerosol Ian Ong tells The Edge Singapore. Indeed, unable to travel overseas and forced to stay at home more often, many people turn to Netflix binge-watching, yoga, baking, or even pick up a new hobby to keep themselves occupied. For consumers of Samurai 2K products, they chose to give their own vehicles a fresh new coat of paint. Luckily, Malaysia’s Movement Control Order (MCO) also did not put a stop to production at Samurai 2K’s facilities, allowing it to produce enough paint to meet growing demand.
Sales tied to agriculture trade “Be it a pandemic or economic recession, our business was not heavily affected in our key markets because we don’t just focus on the big cities. Instead, we focus on small towns. I believe the income of my customers were not badly affected as they are in the agriculture trade,” says Ong, adding that his competitors are also doing rather well.
According to Ong, the household income of those working in agriculture and plantation are affected by the price of commodities such as rubber and palm oil. For example, Ong attributes the drop in revenue and earnings for FY2020 ended March to the drop in the average selling price of palm oil, as these farmers make up a large proportion of Samurai 2K’s customers.
Revenue for FY2020 came in at RM63.1 million ($20.7 million), 13.1% lower than the RM72.6 million a year ago, while earnings fell by 51.2% y-o-y to RM5.1 million. Despite the bleak results, the board doubled its final dividend to 1 cent per share, compared to 0.5 cent per share in FY2019, as the group recorded strong cash and cash equivalents of RM33.2 million at the end of March.
“We have many consumers living in the outskirts who are in the plantation business, such as palm oil. The palm oil workers were affected by the palm oil selling price in FY2020, which caused their income to decrease and also affected their spending power. Hence, they tend to spend less on their hobbies, such as spray painting,” says Ong, who has noticed the same trend in markets such as India, Indonesia, Malaysia and the Philippines.
Palm oil prices have since improved as it traded at RM3,252 per metric tonne on Nov 1, compared to RM2,422 on Nov 1, 2019, representing a 34.3% increase. Improving commodity prices and spending more time at home meant Samurai 2K’s products were flying off the shelves in 1HFY2021. In 1HFY2021 ended September, Samurai 2K reported revenues of RM44.1 million, 55.2% higher than a year ago while gross profit margin increased to 49.5% from 46.6% a year ago. Therefore, earnings more than doubled to RM7.7 million from RM3.2 million in 1HFY2020.
Ong now expects demand to remain high in 2HFY2021 and foresees the upcoming FY2021 results to be released in March to be “much better” compared to FY2020 although he avoids giving a guidance due to the uncertainties surrounding the ongoing pandemic.
Since its listing in January 2017, shares in Samurai 2K have more than trebled from its IPO price of 22 cents to 72 cents on Nov 25, giving it a market cap of $79.1 million. Year to date, its shares have fallen by 10% though.
2020 has been the year where lockdown take places and income of peoples had a hard hit. There's a reasoning to believe DPIH would still grow strong in 2021.
With the decline in sales of motorcycles, is reasonable to believed that people will opt to keep using their old motorcycles. Not only that, with MCO & work from home being the norm in 2020, people are getting crafty in DIY which may push the sales of spray paint for people to spend their time coloring and maintaining their own motorcycles instead of buying a new one as it is cheaper and they have more time to learn throughout the lockdown.
Not only motorcycles, there are still many stuff that will need maintenance to avoid damage and to prolonged life. Eg, Furnitures, Machines in Construction site (due to high exposure of sunlight of rain), helmets and many more. Of course some may say that people would rather buy Paint Spray Gun (PSG) as they are able to refill but do bear in mind that PSG would be much costly especially for those who are only using few times. Only professional tend to use it or those who are using it most of the times. Well, most of DPIH target market would be Malays which consist of about 70% in demographic as i believed that more Malays are willing to DIY and more involvement in artistic business (from my viewpoint as a Chinese, dont get offended lol). With the huge target market, there's is still wide potential as DPIH is growing their production capacity.
Their Competitor Samurai 2k are also expecting higher profit at 2021.
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pushparaj
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Posted by pushparaj > 2020-09-30 19:45 | Report Abuse
DESPITE THE DIVIDEND OF 2SEN, IT'S PRICE IS STILL VOLATILE. SURPRISING