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Allow me to quote a short paragraph in recent announcement:
"KTC was listed on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) on 25 November 2015 under the condition that the Company is required to allocate 12.5% of its enlarged issued share capital to MITI-recognised Bumiputera investors (“Bumiputera Equity Condition”) within 1 year after achieving the profit track record required for a listing on the Main Market of Bursa Securities or 5 years after being listed on the ACE Market of Bursa Securities, whichever is earlier."
So after 4 years and 6 months time has passed, they are now required to issue shares to Bumiputera investors. As this Bumiputera investors must be MITI-recognised and recent announcement that Bumiputera shares can only sell to Bumiputera, some topic to discuss whether this is good or bad for KTC.
This stock currently on sideway movement, or maybe as no movement for those looking for excitement in market. There is a support at RM0.155 level.
Execution plan (Long term, no TP or CL since it is long term):
Entry: RM0.155
Issue new shares, but restricted selling condition, KTC get the capital to repay debt, incurring lesser interest cost, more cash as working capital. Sounded like being forced to take the money. No dividend payout record, nothing to worry on more shares may reduce the dividend per shares, EPS may get diluted but this is not within my interest. What I can see here is my stock picking for KTC is based on its growing revenue, improving profit and a low risk price level, a bargain worth risking my capital.
If the QR came in similar to previous QR, revenue 173.9m and profit 2.0m, making its financial year 2021 a 686.6m revenue and 8.7m profit. All time high yearly revenue. All time high profit was in financial year 2019 of 11.8m, which we see accompanying share price at RM0.220 (short period before QR announcement), then MCO and peak again at RM0.245. Definitely worth taking the risk for me.
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Ktc is a good company if it can lower its liability. I think i pick the stock too rush as i should observe it performance after 5 years. To what i know regarding on this company is. It is a storage space lease company & deliver service company for manufacturer , because it offer storage space and deliver serivce for manufacture. The profit their make is too little we can find this at another similar company DKSH, thier profit basically below 2%
Ktc profit margin around 0.75% if not mistaken, but the reason i bought this company is because it is one of the latest distributor in sabah, it also obtain gardenia license in distributing it profit for sabah sarawak and Indonesia for 10 years and with the indo capital is moviny to the borneo island, it potential is very great
But bear in mind all this good potential assumption can only be realse if the company can remain a low gearing status & obtain a profit margin above 1%, which i see is possible because the company debt is going low. Hope the qr can provide some good news
Entry price RM0.155, if sell at low price of RM0.215 now, it is still a 39% gain after all. But if you sold at RM0.260 this high price, it is a 68% gain. Big congratz, treat me for a meal? HAHAHA, just joking! Enjoy and do support me! Thankiewwww <3
