CHEEWAH (9423) - (Icon) Chee Wah (2) - Beneficiary Of Strong USD. Limited Exposure To US Market
1. Introduction
I first wrote about Chee Wah in November 2015.
http://klse.i3investor.com/blogs/icon8888/86876.jsp
Chee Wah exports the bulk of its products (75%). As such, it is a beneficiary of strong USD.
One thing I like about Chee Wah is that it has limited exposure to US, which makes it not so vulnerable to protectionsim by Donald Trump.
2. Historical P&L
Key observations :-
(a) As an exporter, Chee Wah's profitability is sensitive to USD movement. In December 2015 quarter when average USD was 4.29, the group reported core EPS of 8.3 sen.
(b) During the three months ended 31 December 2016, average USD was 4.33. Because of that, I believe coming quarter result will be very good.
3. Concluding Remarks
As pointed out above, I found Chee Wah an interesting export play because it has very limited exposure to US. As we all know, the new President is making noises about Buy America First.
The coming quarter result should benefit from strong USD. However, as usual, I don't have insider information. Your money your own decision.
CHEEWAH (9423) - (Icon) Chee Wah (2) - Beneficiary Of Strong USD. Limited Exposure To US Market
http://klse.i3investor.com/blogs/icon8888/113381.jsp
I first wrote about Chee Wah in November 2015.
http://klse.i3investor.com/blogs/icon8888/86876.jsp
Chee Wah is principally involved in manufacturing and sale of stationery products under the brand name Campap.
Chee Wah exports the bulk of its products (75%). As such, it is a beneficiary of strong USD.
One thing I like about Chee Wah is that it has limited exposure to US, which makes it not so vulnerable to protectionsim by Donald Trump.
2. Historical P&L
Key observations :-
(a) As an exporter, Chee Wah's profitability is sensitive to USD movement. In December 2015 quarter when average USD was 4.29, the group reported core EPS of 8.3 sen.
(b) During the three months ended 31 December 2016, average USD was 4.33. Because of that, I believe coming quarter result will be very good.
3. Concluding Remarks
As pointed out above, I found Chee Wah an interesting export play because it has very limited exposure to US. As we all know, the new President is making noises about Buy America First.
The coming quarter result should benefit from strong USD. However, as usual, I don't have insider information. Your money your own decision.
CHEEWAH (9423) - (Icon) Chee Wah (2) - Beneficiary Of Strong USD. Limited Exposure To US Market
http://klse.i3investor.com/blogs/icon8888/113381.jsp
