QUOTE(Boon3 @ Mar 29 2014, 03:49 PM)
So fast conclude meh?

Why did earnings exploded so much?
This current fiscal year, growth mana pergi?
And I think....

this explains why the recent 'weakness' in Pwroot share price.
It is no longer having the power it had in 2012.............................

This one FA i can confidently answer...
The stock exploded is because they started to export to middle east, and found good acceptance. Sales to Egypt alone is about 63 mil a year in 2012. With higher export volume, will result in higher revenue and higher profit. There we talk of setting up a factory in Egypt to cater for the explosive growth. Why Egyptians like Alicafe so much, beats me.. maybe because of the name 'Ali' sort of captured the Muslim market.
Then shit happens in Egypt when they overthrow the government and the 63 mil a year shrinks to only 9-10 mil a year. Also during this time, the stock show visibly lower and lower export sales thus hurting earnings. You see the sharp drop in the stock during the time of reporting poorer sales. Some Egyptian debts goes to doubtful debts and leads to write offs. In the mean time there is like 9 million worth of doubtful debt by Egyptians...
But during this time also they launched Ah Huat 'pak kopi' which somehow resonates with the 'Chinese' population and local sales actually picks up in replacement of the eroding export sales. Now things are more or less stabilize as local sales are replacing the export sales.
For future direction, they shifted their export market from Egypt to middle east especially Oman and seen their export gradually improving also they are trying to penetrate Indonesia & Singapore. Apparently Alicafe is found to be very acceptable in Indonesia and Oligo in Singapore...There is also now 'talk' of the middle east factory in Oman....
So it depends, they have successfully captured back some local market share with Ah Huat, which is a great PR move. Now can they re-capture back the export market they have lost previously which will be the catalyst for the stock to go higher? This question can only be answered in the coming Q report...
This post has been edited by gark: Mar 29 2014, 04:19 PM