TGUAN 7034 Share Price

The group PBT recorded RM124.4 million, which represents a decrease of 0.6% compared to RM125.2 million in FY2021. The worldwide inflation had an impact on the operational costs, including resin cost, labour cost, and finance cost. The Group will take precautions to build on its market position and capture new growth areas, both locally and internationally, for all its product lines. Barring any unforeseen circumstances, we expect that all of the Group’s business divisions will continue to be on an upward trajectory.

The higher revenue recorded in the current quarter is mainly due to the increase in average selling price of plastic products and sales volume of stretch film, garbage bags, Industrial packaging, food wrap and food and beverage products. The profit before taxation increase by RM6.37 million from RM31.31million to RM37.68 million was mainly from stretch films, food wrap and food and beverages.

The Profit Before Taxation does not increase in tandem with the increase in revenue and only increase by 0.8% due mainly to the higher depreciation charges as new machines were commissioned into production during the quarter especially the courier bags division and lower contribution margin from its China based operation.

Thong Guan Industries Bhd 3QFY20 net profit increased 13% to RM19.6 million from RM17.34 million a year prior. Quarterly revenue was down 4% to RM245.79 million from RM256.55 million. The higher net profit was on more premium products sold. It declared an interim dividend of one sen per share, payable on Jan 18, 2021. This raised its year-to-date dividend payout to 5 sen versus none in the previous year. 9MFY20 net profit rose by 32% to RM58.26 million from RM44.04 million. Revenue came in at RM717.85 million, up 2% y-o-y from RM703.45 million previously.

Thong Guan Industries Bhd has earmarked RM150mil as capital expenditure (capex) for the next two years to expand its business in Malaysia and overseas. Of the planned capex, the packaging firm said it would invest about RM30mil to RM40mil to build a new plant in Myanmar. The remainder would be used for its Malaysian factory lines to produce stretch films and specialty mailer bags, as well as to install machinery for the manufacturing of food and beverage packaging products.

In Financial Year End 2018, the directors’ remuneration was 3.49 million. It was slightly high compared to average in listed companies, considering the employees’ remuneration of 61.8 million and auditor’s remuneration of 196 thousands

The Group recorded a revenue of RM14.479 million and loss before tax of RM0.925 million for current quarter ended 31 December 2019 as compared to revenue of RM16.803 million and loss before tax of RM0.389 million in preceding quarter. The lower revenue is due to decline in sales of mobile phone prepaid airtime reload services and e-sport softpins to customers. The increase in loss before tax is mainly due to decrease in other income, which the gain on disposal of Tech3 Solution Sdn Bhd, a wholly-owned subsidiary company.

In Financial Year End 2019, the directors’ remuneration was 3.71 million. It was fair compared to average in listed companies, considering the employees’ remuneration of 69.9 million and auditor’s remuneration of 210 thousands