- Raised RM156.3mil from IPO to expand its business arm in Johor (Classic Advantage)
- Constructed a new plant with new machinery in Johor Technology Park, and will relocate old plants in Senai & Kluang to the new plant
- Net profit of 2004 (RM57.2mil) failed to meet target in IPO prospectus (RM65.3mil) due to increase oil price to USD50 and delay in completion of new factory.
- Relocation of Senai & Kluang plants to new plant completed in June 2005
- Revenue increased to record high due to higher capacity & orders, but net profit fell mainly due to higher oil price & price pressure from customers
- Joint-venture (40%) with Owens-Illinois Plastics (NYSE listed) to form O-I Plastics Malaysia (later renamed Rexam and then Berry Plastic), which will operate in a newly-constructed plant within LCTH's existing plant in Johor under lease
- OIP has contracts to manufacture inkjet cartridges
- Revenue sustained but net profit fell further due to consistently high oil price
- Revenue hit record high but net profit fell further, due to surging oil price
- Proposed sales of fixed assets
- Proposed bonus issue & capital reduction
- Revenue and operating profit hit by high oil price (>USD100) and global financial crisis
- Classic Advantage completed sales of land, factories & office block in Johor and lease back
- Completed bonus issue, capital reduction with shares consolidation
- Revenue and core net profit continue to drop for 5 successive years after listing as a result of global financial crisis and slow E&E sector
- Implement cost saving measures
- Lost a major customer who shifted to China, thus revenue took a deep fall and suffered loss for the first time since listed
- Forex loss due to strengthening of RM against USD
- Decided not to pay dividend for the first time since listed
- Revenue fell further and continue to suffer loss
- Faced overcapacity. Set up a new plant in central region of Peninsular Malaysia to relocate some machinery from Johor plant
- Successfully secured a new MNC customer with potential to replace the earlier loss of major customer
- Revenue jumped significantly by 150% after securing new customer but net loss widened, as it is yet to achieve optimal operating efficiency
- Revenue dropped due to change in procurement strategy of a major customer
- Achieved marginal gross profit after cost-control
- Classic Advantage sub-let out certain part of its factory and disposed certain assets to Flextronics
- Net profit in FY13 was boosted by RM18.6mil gain from disposal of assets
- Export sales increased 22% as developed countries looked to cut cost by shifting to lower cost countries like Malaysia
- Continuous right-sizing measures by Classic Advantage
- Revenue took another significant drop but profitability increased due to better cost control and higher margin products
- Target higher value added industries such as automotive, medical & solar power
- Expect manufacturing activities to shift out of China due to growing operating cost & strengthening of Yuan
- Expect higher demand for E&E sector
So, dividend policy can be changed anytime.
Its other customers include Hewlett-Packard and Dyson.
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Normally I won't invest in a company just because it has a lot of cash or assets. How the company use its cash is more important.
For LCTH, if it successfully secures more contracts like what its management anticipate, then it's good.
At current price of 48sen. it is trading at actual PE ratio of 13.4x base on FY14 EPS of 3.59sen.