diabochi upgraded to add at cimb research
The company said Thursday that most of its raw materials are plastic resin and film derived from crude oil.
\"After going through the high raw material prices of the past year, big Bochi\'s profit margin should recover strongly in 2015.
The Australian and ASEAN markets should be the fastest growing.
\"Potential catalysts for inventory include lower raw material prices and more major export guarantee orders,\" the company said . \".
Commenting on the financial results, CIMB Research said that there were 13. 2% on-
9M14 revenue increased year-on-year this year, net profit fell by 13. 6%.
The mid-term DPS is 2.
5 Sen, slightly lower than expected. Year-to-
The dividend date per share is 9.
5, calculate the payment rate of 65%.
9M14 net profit decline is mainly due to rising costs, the final electricity bill rose 17%
The price of polyester and polyethylene resin and film rose by 2013.
\"It is worth noting that 4.
Revenue fell 8% qoq in the third quarter, indicating a slowdown in the F & B sector in the quarter.
\"In the last briefing, big coach has told us that local catering customers have seen some signs of slowing down since June.
However, this stage is temporary as demand resumes from September, \"the company said.
CIMB Research said that a sharp drop in crude oil prices could be beneficial to dai Bochi, as this could mean a drop in the price of raw materials for resin and plastic, as raw materials account for 60% of production costs, it will be very important.
\"The management\'s view last quarter was that raw material prices were too high over the past year and it was looking for opportunities for price drops.
Crude oil prices have fallen by 20% since July, and if prices continue to fall, it must be positive for big Bochi.
\"ASEAN and Australia are strong markets for the long term --term potential.
In the past year, especially in the export market, big coach\'s business has been very strong.
If all goes well, big coach should have more export orders next year.
\"In addition, the company may soon take some market share from its peers, Tomypak Holdings, because given the company\'s recent equity changes, the customer\'s management of Tomypak is uncertain, CIMB Research.