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For Part 1, Please refer to the following link, this is a continuation of the additional points I did not cover previously.



I'll talk about the inventory this Company is holding, sometimes the annual report can give you more detailed information. Since my background come from an auditor is natural that I will look into it. I want to bring to your attention the key audit matters (KAM).

First of all need to understand what is inside the inventory, as you see copper, gold, silver and aluminium. Read the whole thing and finally you get the inventories are just these are nothing else. So in case these commodities price increase, naturally profit will increase.

Based on how the Company managed it's inventory they will somehow maintain close to RM40 - 50mil worth of inventories in  every quarter. I've checked the past 2 years quarter results for the trend. So meaning they won't one time sell too much or too little. Just a balance.

Recent commentaries by the Management

My comments: Usually when you tell people about your Company's performance very rarely people use the word "bullish" unless it is really spectalular. Usually we will use optimistic, cautiously optimistic. But rarely I encounter when people use the word "bullish", because if your performance is dissapointing, then people will point their fingers to you for inacurate information. The art of using words.


The industry the Company is operating in

Based on the below 80% electronic waste and 20% industrial waste. 80% electronic waste are mainly from semi conductor industry, I think most of you are very familiar with those in technology sector, so basically those are their client's. Generally if semi conductor industry are booming or doing well, they would also do well. If you eat a lot naturally you will shit a lot, as an illustration. For industrial waste side, I'm quite familiar due to auditing experience, the margin is quite high actually. How they have control to see if the waste is fully turn into non hazardous element is they will flow it in a pond within the premise, and if no fish dies, means everything is fine. If fish dies, then means something is wrong.

Diversification into Renewable Energy

For me it's good, you won't want to rely entirely on your trading of commodities, because prices fluctuate quite frequently.