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1. There are increasing numbers of groceries stores selling the Daily's brand in Klang Valley.
2. The Management increasingly focuses on the quality of stores over quantity
3. Next quarter results include fasting month, but also CNY biscuits sales
4. The forward ROE is around 15%, P/E likely around 11 (below historical average). Both of which are healthy lvl, imo
5. It has dropped too much, aka too late to cut loss, unless u need the money in the near term
Choon yang: yeah, this is the worst case scenario. By right, the london biscuit tora and increased capacity shud increase sales (albeit not immediately)
Assume 5% loan interest. A 100m loan = 5m interest per year. Equal to 1.25m per quarter. Compare this to the quarter net profit of 7m. (Quite significant). However, there is no choice, need to expand ma bussiness. So is a long term game. Btw, if we assume 7m minus 1.25m, then net profit drops by 18%. Compare to the drop recently. From 0.8 to 0.53 (34% drop)
Can check ‘wheat futures’. I see current price is far lower than that during covid. Current selldown probably due to high capex (land100m n london tora) n the drop in net profit compared to 2023 highs.
那再说，为什么那么多人卖，过后几个季度finance cost 应该会蛮高. 假设借贷率5%. 100mil 借钱买地，就要付利息5mil per year or 1.25mil per quarter. 现在平均季度净利润为6-7mil. 你说这个1.25mil 的支出算大吗? 不过这些人应该是先卖先跑，等行情好一点了就会回来/ 不是permanent 的卖了就走. 好比几个季度过后，业绩创新低，那时散户看到业绩差才卖，他们就买回来