Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
In 2023 spend millions in new machinery in Indonesia and new facility in Thailand. Unfortunately, sales have been pretty much flat in those countries. That is concerning to me.
I have sold off my holdings with the recent price increase as my target was reached. Will look at their next Qtr results to decide whether to go in or not. At the current price, I think it is too risky to go in.
Losses not only due to depreciation. Also due to drop in sales & increase in production costs (labour and electricity). Maybe could not transfer the cost increases to customers due to contracts in place. My biggest concern is the drop in sales. Compared to Qtr 1 2024, Sales drop by 5.7%. Despite spending a lot of money in new machinery in 2023, we have not seen increase in Sales. only increase in depreciation. If sales do not go up, profits will not be seen. 1st quarterly loss in 10 years.
Based on the quarterly results Q1 2024, it looks like the earliest possible turnaround will be in Q3 2024 or in Q4 2024.
Note B1, there is a delay in the start of spunlace production.
Additionally, it looks like all is not well in Indonesia. Even after making substantial investment in cross lapping and vertical felt production lines, quarterly sales are lowest since Qtr 4 2020.
Revenue in Thailand has not shown any significant improvement. Sales of only 3 mil. Far from the 5.7 mil in Q4 22.
Yes, that is true, I also don't understand, OCNCASH non-woven was never big in mask/health care, but during pendamic when up like crazy. If up again like crazy, will sell and lock in profits. Just keep some to attend AGM.
Cause if we read the Qtr 4 2023 report in Feb 2024, management was still very cautious. Indicating things hadn't turned around as of February. In the recent annual report, management was much more positive. Indication that things are looking positive. So maybe that is the reason for the rally.
If I have a crystal ball that can tell me the future, I would be very rich dy, Hahaha.
To answer your question:
I expected the company to turn around in Qtr 3 2024. Earliest Qtr 2 2024, per my earlier comments. I am also surprised on how much it went up these two days. Thought will go to 0.36, hold there, and in 2~3 months only go to 0.43. Hope this time not kena goreng. Anyway, today, I sold some of my holdings to lock in some gains.
