LCTITAN (5284) 👇 97.32% YOY 业绩，问你怕没？
🔽🔽🔽English version included 🔽🔽🔽
相信大家对LCTITAN 不会太陌生，这个公司在 2017 年的六月上市，当初上市价钱也是一波三折 :-
从一开始的 RM8 per share，被逼要降低价格在RM 6.50 出售 🤭 然后开始不久直接跌破 RM5，真的是买到都要哭了。
主要业务 ： 生产olefins & polyolefins。基本上来说就是卖出制造 plastic 物品的 synthetic rubber 用的。
那么提到plastic 跟synthetic rubber，通常会跟油价上下有着一定的关系，对于LCTITAN 来说，油价上，他们盈利不一定会上。是的，油价跟他们不一定是正面的关系。
在他们的季度报告中提到一点 — 原料价格上涨，所卖的物品价格向下滑。这是主要造成这次公司接近亏损的原因。（实际上是已经亏损了，只是因为tax cover 罢了。）
LCTITAN 的季报第一面就跟大家说profit 下跌是因为COGS （成本）上涨了。但是一个起 35% （成本起大概600m），一个Distribution cost 起3% （起了大概640k），玩也meh？
但是整体来说，公司还是在生意上有赚钱的。你可看看cash flow 的图。但是赚钱少，烧钱多。
就跟上面提到的原料上涨有关，我们要怎么去分析到底怎样去看季报呢？请见下回分晓 —> 如果有过50个share 的话啦！ 😂😂
LCTITAN (5284) down 97.32% YOY on this quarter, ask you GG or not!
We believe investors wouldn’t be too unfamiliar with LCTITAN, as the company was listed on year 2017 June. However, the listing process wasn’t as smooth as they wanted :-
– Listing Price RM 8
– Declined to RM 6.50 due to lack of demand / subscription 🤭
– In one month time the price broken price level of RM 5, wow!
But back to the main topic, why did the company suddenly suffer a huge dip in the profit? Let’s walk through the company’s background for a bit.
Main business: Production of olefins & polyofefins. To make it simple, these are the raw materials for plastic and synthetic rubber.
When we mentioned about raw materials, won’t you think of them as somewhat similar to crude oil? For production companies as such, normally their profitability walked side by side with the crude oil price. But for LCTITAN, it might be walking towards the different direction.
The management mentioned in the quarter report as a key point –> As the price of raw material (Crude Oil) increases, their product price dropped instead. And that is the REAL reason why the company profit dropped so much.
LCTITAN mentioned that the COGS increased is caused by the shifting of distribution costs to COGS. But as COGS increased 35%, distribution costs only rise by a minimal 3%. What magic is this?
But, on the bright side, the company is still able to generate cash flow from it’s business operations. However, the company is burning money quicker than they could earn.
As we mentioned about the hike of raw material price above, how can we identify what is the root cost for a company profitability to drop? We will expose this at the “Part 2” of this topic, that is, if this post reaches 50 shares
P.S this is not a buy or sell call, please consult your broker/remiser before buying or selling.