COMMENTS ON BTM RESOURCES BERHAD (7188)

FIGURE 1: BTM RESOURCES BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2017 annual report.

1.       GENERAL INTRO: This counter core business is on wood-based industry comprising of wood moulding, priming timber and laminated timber, provision of kiln-drying services, trading in sawn timber plywood and veneer, sawmilling and logging.

2.       NOTABLE POINTS:

a.       manufacturing and sawmill facilities are based in Terengganu, new factory for manufacturing wood pellet commenced production in 2017.

b.      wood products exports are mainly to Australia, South Korea and Philippines, which contributed approximately 43% to the Group's revenue

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~12.7 million in 2017 annual report, this is a low revenue company.

b.      SHARE PRICE: share price in last few years is at ~RM0.20 range, in 2018 dropped to ~RM0.10.

c.       EARNING PER SHARE (EPS): earning per share in last 5 years were fluctuating, EPS were --1.8, -11.3, -2.1, 0.32, -0.65 sen per share, respectively, making losses in 4 out of 5 years.

d.      FUTURE POTENTIAL/PROSPECTS: may continue to face pressure of lower sales volume and selling price of wood products.

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is 0.98 million, around 2.4% of total assets.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2017 report, there was no dividend payout declared.

b.      CONSISTENCY: there was no dividend payout declared in last five years.

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around 0.98 million

b.      SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well supported by institutional investors, there is no presence of institutional investors at top 30 major shareholders list.

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