Annonced 1HFY04 results, very disappointing to due increasing raw material costs because of high oil price.
To hold until annoncement of 2HFY04 results to assess the revenue growth.
- Expected revenue to growth from:
1. USA - new market which was described as huger potential
2. Japan - continue trend
3. Europe - moderate growth
4. China - due to acquisition of China sub. in 1 June 04 with huge distribution network
- Management ability to contain cost and improve margin of 1HFY04
- Operating cashflow should continue to be positive, although the company paid S$3.28M for a buidling in Aug04
- Continue dividend declaration amid lower amount
Initial investment merits - Thoughts
- make use of low manufacturing costs in China to produce for OEM worldwide
No comments:
Post a Comment