PA - Net profit increased 5,099.2%, Net Cash RM88.8 mil with good intentions!
PA is an aluminum product manufacturer with manufacturing capacity to produce aluminum billets and end product stamping. The major customer is First Solar from the US. There are also quite a few investors who worry that PA is too dependent on a single major customer. This is a potential risk. The situation is similar to MAGNI.
However, since getting First Solar in 2018, the company has extended it for the 3rd time, and each time it is bigger than the previous contract. In January of this year, the company obtained an extension of the FirstSolar contract for a period of 18 months of RM1,076 mils. Therefore, performance is expected to grow steadily over the next 5 to 6 quarters.
Since the company only earned RM239k in the same period last year, surrendering RM12.436 mils of profit in the latest quarter increased the company by 5,099.2%. Although there is a foreign exchange profit of RM2.9 mil, there are also RM1.8 mil ESOS expenses, and when deducted, there is also PAT of RM11.5 mil or more.
The company's new production capacity was upgraded in March, mainly to meet the record high contract obtained in January. It is expected that next quarter, with the contribution of new production capacity, turnover and profit will rise to the next level.
The company's net cash reached a new high in the latest quarter, reaching RM88.8 mil. Mainly due to increased profits, reduced inventory, and the collection of accounts receivable.
The company's stock price has been fluctuating for the past 3 months, and the results this time are also good. Let's see how the market reacts tomorrow.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
投资座右铭：价值为主，技术为辅，心态之上
在股市拥有超过10年的经验，主要是通过科技以及制造出口领域累积财富。
7608Followers
12Following
13KVisitors
Follow