Stock to review: TekSeng (7200) Current Share price: RM0.93
Financial Position: Good, please refer below:
Cash increased RM15mil, everything seems almost the same since 31 December 2019. No good meh? Very good lor...Lets continue to see their performance in terms of revenue and profit and loss. Net operating cash flow of RM12.8mil. Positive.
Review of Performance
If you guys observed, revenue actually decrease but the profit margin increase wor...good? Seems like the Company is going up climb the mountain soon, so please put this is your watchlist if you have not do so. If next quarter continue to be promising then ehem ehem...Quite promising I would say, but need to increase the revenue lar...
So what's the reason performance so good? Let's see
1. Higher revenue and improved sales mix recorded by PVC segment
2. Higher other operating income
3. Lower impairment loss of PPE
4. Lower overhead production costs in Solar segment (seems something is improving)
Prospects
FY2020 remains stable for PVC segment although raw materials prices might fluctuate as in foreign currency. Moving forward the Company will focus on producing PP Non Woven Materials to cater for medical appliances.
Conclusion:
Very good. Short term to Mid term TP: RM1.20. I will only upgrade to RM2 if the next quarters results is amazing.
Disclaimer
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https://klse.i3investor.com/blogs/BabyAceStockAnalysis/2020-07-30-story-h1511441201-TEKSENG_7200_Ah_Pek_Company_With_Good_Potential_Q2_Fantastic_TP_RM1_20_.jsp
