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Profit from building material increase significant. Cash in hand 90m. Market cap 140k only. Projection annual profit definately can hit more than last year. Expected more construction project in future.
can't really see from reports on how much net gain from the land disposal. in the cash flow statement, there is a 8.1 mil receipt from the disposal. I'm bit disappointed that their building material didn't generate higher revenue but slightly lower than preceding quarter. what obvious is the manufacturing biz is normalizing further until just 260k++ profit before tax. Such performance is comparable to year 2018.
it seems to me that Esceramic yet to gain more biz from the current construction industry in the country and hopefully this would be better in coming quarters. manufacturing biz should stabilize now in moving forward and it s good thing that it is still profitable at the moment instead of losses.
don't just focus on total cash on hand. I knew many companies which have much cash still failed in their biz or mismanaged the cash to acquire failed subsidiaries or depreciating assets e.g. MAS, Parkson, TopGlove, Supermax, FGV, etc. with the cash, I hope the BOD would invest it for betterment of the biz such as automation or digitization of their biz for cost efficiency instead of some irresponsible BOD who acquire private plane or acquire expensive assets with low ROI.
You only need 20m to become biggest shareholder who can own a company with cash almost 100m with market cap 140m, and it can generate more than 20m annual profit too. That is something interesting to play with.
just be reminded in August Es Ceramic would need to issue additional shares to Evermix sellers.
In a bourse filing, ES Ceramic said the acquisition will be satisfied via a combination of RM65 million cash and the remaining RM18 million will be paid in the form of new ES Ceramic shares, at an issue price of 32 sen per share.
with new issue shares that would be dilution of EPS and potential lower share price post adjustment. but it still depends on the share price during the issuance date.