(29-05-2014, 07:33 PM)CY09 Wrote: Perhaps you could read the company's AR 13 report and you will know the coy's strategy of moving towards automotive. Also from what the CIMB report on page 3, molds for plastic components of automotive stay relevant longer compared to consumer/ electronics. This eliminates the need of constantly changing to meet customer's demand
Almost every brand having new car models every year now with new interiors, surely the plastics mould would have to change? Just like mobile phone also 1 year change 1 time.
I think they just see increased demand in chinese automotive market as china ramps up their roads and everyone must have a car, so build more capacity for automotive. Sunningdale also benefiting from this.
In fact if you see the report, similar percentage increase year on year for auto and consumer. Biggest % gain was in healthcare which is their smallest department (maybe they should go in this direction, like Riverstone benefiting from healthcare sector, after all china hospitals must be chock a block full of patients from all the pollution. Maybe the biggest margins are in automotive or maybe its just their biggest earner. A breakdown of profit margin each area would be more helpful.
I will accumulate only if the dividend level goes to 6% Car industry can turn down also, just like the shipping.
Virtual currencies are worth virtually nothing.
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