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White Horse - for the patient investor Post Reply Rate topic
i4value Member	05-Jun-2023 15:01        i4value About Contact  Quote this Post! Style: Fundamental   Mood: Yells: "i4value.asia"
x 0   x 0  Alert Admin	White Horse is one of the largest ceramic tile manufacturers in the region with factories in Johore.  Like all building materials companies, its sale over the past few years were impacted by the soft property and construction markets in Malaysia. Imagine the situation - low sales leading to it operating below its breakeven levels, leading to losses. You can see this sad trend in the chart below extracted from my analysis in Is White Horse one of the better Bursa Malaysia stocks? When faced with such a situation, there are three options: increase sales volume. increase selling prices. cut costs. In a soft market situation, the first 2 options are out. So you are left with the last one. This was what the company did - from divesting unprofitable units to reducing capacity. Today the company has a leaner operations than than 5 years ago. What does this mean?  When the demand picks up following the recovery of the construction and property market, you would expect White Horse to operate above breakeven and be profitable. I hope I have made a business case for the company. Of course it is not an opportuntiy for the punters. It is for those with a long-term outlook.
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