Wednesday, 9 May 2018

HUPSENG Annual Report 2017


Today let's have a look at the annual report of HUPSENG.

 First,
some basic financial informations:
Actually the revenue of HUPSENG is quite good,
almost have improvement every year.

 However..........
The profit..............

 The dividends for past 5 years:

Since year 2015,
HUPSENG distributed most the profit as dividend,
that's why the company is able to maintain the high PE.

 The ratio of domestic and export market:

Currently,
domestic market was 70.9% while export was 29.1%.

 Then,
this sentence quite caught my attention:

More aggressive promotion planning.....
Seems like the marketing expense will be more higher than year 2017..........
Hopefully it won't affect the future dividend distribution.

 For production:
：

The capacity utilization was averagely 82%.
The production lines for cracker series was at full capacity,
and an additional Cracker line is planned to replace the existing old line,
but the plan will be delayed to year 2020.

 Also, the company will replace two baking lines,
and start using auto stacking system.

 Now every company also go for automation,
is time for us to think.....
the works that we are doing now, will it be replaced by AI one day?
Will there be a day when...... everyone will be reading investment blog written by AI??

 New product:

Premium Chocolate Cookies??
I did look around in a shopping mall nearby, but couldn't find it though.........-_-)

 For export:

The top five countries which constitutes about 57% of total export revenue:
Thailand, Saudi Arabia, Indonesia, Singapore, Myanmar.

 Seems like a lot of good news for export segment:

First,
the sales revenue for export increased by 8%,
and Saudi Arabia hit 41% growth.
Also,
China jumped to 6th largest market form 10th in 2016~

 GOOD,
that's what I have been looking for.......
A company that not only doing well in domestic market,
but also keep expending to oversea market.

 That's all for the annual report.

 It is good for the company to expand to oversea,
but the oversea market will not be the same as Malaysia market,
a lot of strong players will be there.

 For example the Garuda company from Indonesia,
the Gery Crackers is quite delicious

 Will HUPSENG be able to withstand all these strong opponents and keep on growing the export segment?

 Investment is about doing own thinking, making own decision.

 Thanks for reading.

I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.

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