On the revenue show increment of 18%
but on the net profit drop 14%. why such can happen with somethings so weird. then we have to check on the review on the QR see what is explanation.
Review on performance
according to management it was the forex gain reduce.
but look a the details have shown that the staff cost increase as well the cost of sales increase.
means raw material and laborer cost have increase. to verify if minimum wages start effect on Q3 2016.
Actual seen on QR is the cost of sales increase about 16%(expenses) due to material/raw material cost.(to check what is raw material and cost trend)
Staff cost increase 100% from 5mil to 10mil. this increase significant to check what is the reason.
Base on management statement is the forex gain reduce about 66% lower. this should be just one of the reason. but overall should be raw material cost, staff cost and forex cause the decrease in Net profit.
Review on segment report
On segment report show 60% of sales still contribute from Msia while Oversea contribute about 40%.
looking at current weak sentiment on consumer in Msia, increase sales in oversea is a wise option instead. to check if the future oversea sales can contribute 50% instead.
Prospect
as management claim to generate more export sales to Mid East country instead. overall from segment report can see that the msia revenue is about half and export is about half. so if the Q3 RM was appreciate(to be check) then in Q4 PWROOT report should be better instead as forex gain increase, provided that the sales to Mid East/North Africa increase or remain same.
As my point of view, i feel Malaysia products less export out, especially those finish goods, consumer products. I feel Malaysia still in the stage of exporting more on raw material or raw material that had processed.
ReplyDeleteindeed is import raw material process and sell out. major raw material is imported. Export most is electronic, palm oil. crude oil.
ReplyDeleteneed check inventory, as consumer product. inventory got expired date. need highlight advantage and disadvantage and personal review. who is main competitor.
ReplyDelete