|Net Cash Flow||-5.7||-6.4||-8.7||-9.6||-5.0|
|Net D/E Ratio||Net Cash||Net Cash||Net Cash||Net Cash||Net Cash|
It looks like this statement is cut & pasted to every quarterly financial reports.
YOCB's inventory is getting higher while its sales and profit margin are getting lower this quarter compared to previous year.
This may indicate that it has poorer sales, and is forced to cut price or is unable to increase the selling price of its products to mitigate the rising cost at the moment in a competitive environment.
Nevertheless, why does the management still want to build a new factory & warehouse? Do they foresee better demand in the future?
I will lower net profit forecast for YOCB in FY15 to RM16mil, thus EPS will be 10sen and target price RM1.00.
As my shareholding in YOCB is very small, I may just treat it as a fixed deposit and hope for better result from year end sales.
If I have a chance to sell at a good price, then I will take it.