Today let's continue the follow up of the snack company--OFI.
First let's have a look at the latest financial result which released at end of February:
Hmmm....
Revenue not bad, got some improvements,
but........
the cost of sales also rose,
at the end the gross profit was lowered...........
And then:
All the high expenses caused the profit to be lower..............
Anyone still remember that OFI spent a lot of money to acquire new machines?
The money spent on purchasing property, plant and equipment was a lot less than year 2016,
Phew.......
the company finally can be little more relieved from the losing of cash.....
In two years time,
the company changed from a cash rich company to now only have the money which borrowed............
Well,
actually the revenue was not bad at all:
It just felt like.............
The cake kept growing bigger and bigger,
but we just couldn't taste it............
The prospects from the company:
When will the new product lines start contributing?
Every time I went to supermarket,
I always checked whether there is any new products by OFI,
and the result was NONE...........
By the way,
the dividend:
The proposed dividend is 0.5sen,
last year same quarter was 1.0sen,
reduced by 50%..........
Of course,
the company is having hard time,
so is hard to maintain the payout of dividend.
What will happen to OFI at the future?
Even though I do not own any OFI shares currently,
but I always pay attention to it.
For me,
I think this company will be a very interesting case study~
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.
