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profit margin for supermx not only manufacturing profit but also distribution profit , and eliminate on agent brokerage fees, which is the competitive advantage for obm company , and from the annual report, supermx is heading to increase the production line
Just imagine u manufacture products at the same capacity where fix cost is fix. But the selling price increase by 100%. The additional selling price will convert to profits, make sense to you?
Hahahah Daniel never do homework. Hartalega has the best margin in the past years, that’s why the valuation is always the highest among the big 4, but margin is no longer a competitive advantage at this time. Supermx will benefit more in this Covid due to OBM business model.
Harta produce glove for its supplier, it’s supplier sell the glove at current market price. Harta produce glove for its supplier to make money.
(Act harta had sign contract with its supplier, next quarter wil see harta profit margin jump)
