Wednesday, November 25, 2015

25/11/2015 Canon Update on OCNCASH – Time to meet the IB-er for board changing

The bad market sentiment had caused the most of the stock tumbled and we saw OCNCASH dropping as well. However, OCNCASH had finally release their quarter report this evening and the result shows 600% increase from preceding year and is flat compare to last quarter.

What is so special with the company quarter report?
From note A8, we can see that
1.       The growth of the company came from Hygiene segment where the Felt segment remain flat.
2.       The growth is from Japan, Indonesia and Thailand (Please check the photo attached)
3.       The 9 months revenue of the company grow by 12.23%

From note B1, we can see that
1.       The increase in revenue and profit was due to strengthening Rupiah

From note B3, Prospect for Year 2015
The management anticipate the group’s performance for the financial year 2015 to be better than 2014.

Surprising Dividend,
Company proposed interim dividend of RM0.007

Summary,
1.       As we mentioned in our article before this, we saw growth from Thailand, Indonesia and Japan.
2.       Company get marginal benefit from the appreciation of Rupiah
3.        Company had made Rm4.913m for whole year in 2014 and now they made RM7.085m net profit for the past 9 months in 2015. This is RM2.7m higher than last year and company had just QUALIFY THEMSELVES FOR LISTING BOARD CHANGING REQUIREMENT.
4.       A surprising dividend proposed by the dividend.
As we can see, the company is still doing well and healthy and it is still undervalue by now (according to our valuation in the previous note). The company had given interim dividend to compensate the shareholders. The sell down today was due to the bad sentiment hence any weakness is our chance to invest further.

May all the HUAT be with us!
Regards
Big Canon Finance

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