Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Thursday, August 26, 2010

Multi Sports' Pre-Tax Profit Up At RM21.330 Million In Second Quarter

KUALA LUMPUR, August 25 (Bernama) -- Shoe sole manufacturer Multi Sports Holdings Ltd announced impressive results with pre-tax profit for its second quarter ended June 30, 2010, up at RM21.330 million from RM14.325 million in the same quarter last year.

Revenue rose to RM74.177 million from RM48.656 million previously, it said in a filing to Bursa Malaysia Wednesday.

For the half-year period, Multi Sports' pre-tax profit rose to RM39.194 million from RM25.907 million in the corresponding period last year while revenue increased 57.6 per cent to RM137.922 million from RM87.544 million.

On prospects, Multi Sport is optimistic that financial year ending Dec 31, 2010, will be a promising year for the group as the growth rate for China's sports footwear market should continue to improve in tandem with the country's economic growth, which continues to be robust.

"As China's per capita disposable income continues to grow, we are optimistic that average consumption of sports shoes per person per annum will continue to grow with the increasing purchasing power of the average person in China," the group said.

"This will bode well for the group, especially in view of the size of the domestic consumer market in China," it said.

In view of promising market conditions this year, Multi Sports fast-tracked its expansion plans, and expect to complete construction of all factories and dormitories on its new production centre on Xibin Land in Fujian Province by end-2010.

"Our operations are expected to grow significantly with the completion of our new production centre," the group said.

"The commencement of operations after completion of the buildings on Xibin Land is anticipated to contribute positively to growth in forthcoming years," it said.

The group's performance is expected to further improve in financial year 2010 as it continues to increase its production capacity to fulfil customer demand, and increase its new range of design offerings in line with market trends.

While optimistic about demand conditions for its sports-shoe soles and sports shoes in China for 2010, Multi Sports said it would continue to exercise discipline in managing its operating cost base.


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