Record down on Panamy performance
This Quarter report is obviously poor than last year QR.
Revenue drop 7% ; EPS drop 37%.
Results poor due to demand lower in Middle east as well one off derivative loss(forex loss).
panamy policy is purchase forward contract for all forex trade.
this action can mitigate future risk, avoid forecast on forex risk.
Panamy major product is home appliance product & Fan & others product.
these 2 product for Asia,Mid east market already contribute more than 94%.
Malaysia market can be forecast with the property market situation, as more new house means need more new appliance and fans. Mid east cannot be retrieve.
Liabilities
debt wise panamy is low, as no such long term debt all is only operation debt. no wonder can give out good dividend.
Prospect for year 2019 from management
The export market conditions are set to remain volatile and the performance of the Company could also be further impacted by the volatility of the Ringgit. However, the Company is committed to aggressively pursue its business strategy of prudent cost management to achieve satisfactory results for the financial year ending 31 March 2019. (overall market situation cannot be manageable, only cost can be mange better)
Chart wise
Based on 5 line chart the current price is consider at cheap value, perhaps on the EPS gain impact.
but based on candle stick chart, current price is at the high level of the stock history. entry now could be risky unless foresee the prospect will be great.
Comment
for next quarter results maybe better as it will be only GST free period. and higher consumer spending period. July & August 2018. so expect next QR on Nov 18 should be doing better.
but as after sept 2018 will implement SST, so manufacture will be taxed 10%, not sure if panamy is exempted for the export tax else the future results still uncertain. it is not having a good first year QR, as june GST exemption not seen to have a good results to panamy.
fundamentally panamy is japan company which is good at dividend pay out as they are prudent to take money back to their japan company.
