New Toyo

[Stockerman]

Hi Postuser, tks for your earlier comment on the growth prospect for Tien Wah, but I think there are no reasons to be optimistic for the following reason.

The point is we should not literally take the words said by the company for granted as the holy truth. Market conditions do change and it has changed for the case of Tien Wah. It would be more challenging than ever as PMI and BAT fight for market shares in Asia Pacific.


Evidence:-

During full year 2012 results, Tien Wah mentioned the following:
"The Directors are of the opinion that the outlook for 2013 remains positive with potential for growth
despite the easing of market demands globally. The Group looks forward to stability in demand arising
from key customers and at the same time actively pursuing for new market opportunities."

BUT, NOW during the most recent Q2 results, they mentioned the following:

"Group’s revenue for the six months ended 30 June 2013 of RM196.2 million was RM7.1 million or 3.5% lower than the previous corresponding period of RM203.3 million due to weakening of market demands. "

"The Directors are of the opinion that the outlook for 2013 remains challenging. However, the Group has
strategies in place to address some of the challenges."