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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.
