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


Wednesday, December 22, 2010

Adventa 4Q net profit surges 220% to RM11.8m

KUALA LUMPUR: ADVENTA BHD []'s net profit surged 220% to RM11.8 million for the fourth quarter (4Q) ended Oct 31, 2010 from RM5.36 million a year ago, on the back of a 22% improvement in revenue to RM91.02 million.

The glove maker said on Wednesday, Dec 22 earnings per share were 7.72 sen, while net assets per share was RM1.46. It proposed a first and final tax exempt dividend of seven sen per share for the financial year ended Oct 31, 2010.

For FY ended Oct 31, net profit more than doubled to RM35.8 million from RM16.96 million, while revenue rose 19% to RM336.17 million from RM282.74 million.

It explained the rapid rise in rubber prices induced a large time-lag related delay in revenue increase even though costs were are eventually passed into selling price.

Adventa said a new factory was completed in this period, adding capacity to the tight high utilisation rate in some products.

Commenting on its outlook, Adventa said its financials closed the fourth quarter on a tumultuous year of material costs increases and large fluctuations in both the US dollar and euro.

"These fast changing dynamics pose a challenge to match current cost against forward sales. The several cost cutting measures implemented this quarter help mitigate surging costs and should bring improvements to next year's earnings," it said.

Read more


Price reaction to the report
23.12.10

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts Plugin for WordPress, Blogger...