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S&P has issued an update report (dated 13May11) on Tsit Wing, following the Q1 (ended 31Mar11)-FY11 results.....
http://research.sgx.com/reports/rpt_view.pl?id=6489 [S&P report]
http://info.sgx.com/webcoranncatth.nsf/V...D0046EEB9/$file/TWIH_Results_Announcement_Q12011.pdf?openelement [Q1-FY11 results]
Despite the lacklustre Q1 results, I am comforted by the following para from the S&P report...
"We lower our FY11 net profit forecast by 10.8% to HKD18.2 mln to
reflect margin compression from higher-than-expected coffee beans
prices and shifting of more business from tea bistros to quick-service
restaurant chains. We expect Tsit Wing to perform better in 2H11 when
margin pressure should ease with stabilizing commodity prices and
shorter contracts with clients to better match locked-in raw material
costs."
Indeed, international coffee bean prices have corrected sharply downwards - by some 8.4% based on the ICO composite indicator; or by some 10% based on Brazilian Naturals (Arabica beans) - from the recent historical peak recorded on 3May11.....
http://www.ico.org/prices/pr.htm
There is just too much mindless speculation on commodities for short-term price gain and movement by financial investors in this world!
I now look forward to the coming HKD0.035/share Final dividend payment on 1Jun11.
http://research.sgx.com/reports/rpt_view.pl?id=6489 [S&P report]
http://info.sgx.com/webcoranncatth.nsf/V...D0046EEB9/$file/TWIH_Results_Announcement_Q12011.pdf?openelement [Q1-FY11 results]
Despite the lacklustre Q1 results, I am comforted by the following para from the S&P report...
"We lower our FY11 net profit forecast by 10.8% to HKD18.2 mln to
reflect margin compression from higher-than-expected coffee beans
prices and shifting of more business from tea bistros to quick-service
restaurant chains. We expect Tsit Wing to perform better in 2H11 when
margin pressure should ease with stabilizing commodity prices and
shorter contracts with clients to better match locked-in raw material
costs."
Indeed, international coffee bean prices have corrected sharply downwards - by some 8.4% based on the ICO composite indicator; or by some 10% based on Brazilian Naturals (Arabica beans) - from the recent historical peak recorded on 3May11.....
http://www.ico.org/prices/pr.htm
There is just too much mindless speculation on commodities for short-term price gain and movement by financial investors in this world!
I now look forward to the coming HKD0.035/share Final dividend payment on 1Jun11.