Another new idea on a grwoth stock with likely nice dividends.
I am warming up to QTC (4.84), even while not knowing the story so well. Just now trying to get the appointment with this company. QTC does seem to be the premier electrical transformer company which I replaced from lagging TRT -as that company just disappointed me too long. It is a choice in my latest model portfolio. Take a look at their web site.
This company exports heavily and increasingly especially to AU, but all around the world. Sales are increasing nicely of late but so are expenses -likely because I know they are gearing up production capacity by 20%, i.e. getting ready for a much higher level. Phase 2 will bring economies of scale and so reduce cost, this is my take. Q4 '12 revenues/profits should start reflecting this increase.
What I noticed however is in the notes to their financial statements, on page 4, (hope the below copies nicely into this article). Here we note that something’s must be happening as all these indicate growth likely to come into the future.
1. INVENTORIES – NET Baht
30 September 2012 31 December 2011
Raw materials 138,182,463 72,260,959
Work in process 39,077,465 13,978,849
Finished goods 66,388,642 53,402,302
Raw materials in transit 28,927,087 10,793,845
Total 272,575,657 150,435,955
I think something may be happening there...which indicates growth to come.
I also like the stock graph as it shows sideway up for some time....and just lately more trading volume coming in as well? The p/e is reasonable and the div. yield as well.. (note the capital has been increase to 200 mill. outstanding shares post IPO, so the EPS comparison to 2011 must be adjusted for that.)
My hunch is expenses of late are going up because of them gearing up for much higher exports. I will ask them on the e-mail about the correct observations on how expenses are rocketing up. Here is how I just wrote the company, after receiving the mail below indicating some interest in meeting up. No answer received yet. Keep posted.
Dear K. On-intra Tungtrakool,
I will be in Bangkok next week from Jan 23 to 25 in the morning.
Is there anyway we can visit at your company offices for a short while?
Alternatively, I would be happy to invite you and/or your Managing Director
for a Lunch on Jan 23 or 24 (or even for Dinner if that is better) at the Marriott JW,
Sukhumvit. Soi 2. As we are very interested in getting to know your company better.
Best Regards and Savadikrap,
Paul Renaud.
www.thaistocks.com
On Thu, Jan 10, 2013 at 2:19 PM, Onintra wrote me:
Dear Mr. Paul Renaud,
We are very glad that you are interested our company and so proud to present you our story line. The first, we are send to you Company Profile and here you are our website ;www. qtc-energy.com. Could you tell us how many of attendants?
Where do you visit Company at Bangkok or Factory at Rayoung ?
We will check schedule and make appointment as soon as.
Thank you again for your interested and we look forward to hearing from you.
Best regards,
On-intra Tungtrakool
Investor Relations Team Leader
QTC Energy Public Company Limited
M: +66 (0) 86 898 0038
T: +66 (0) 2379 3089 - 92 Ext. 241
Paul A. Renaud.
www.thaistocks.com
