As what
@startrek has mentioned, cash receipts from customers are probably lagging which makes this report even more impressive.
Cost of production for the quarterFrom cost of production perspective, VIP has roughly 440m annual production cap before the installation of new lines to bring it to 620m annual cap in May.
For the 3 months ending June,
Estimated VIP production from old line of 440m = 110m gloves
Estimated VIP production from new line of 180m = 15m gloves (taking into account only June as new lines are commissioned in May).
So total glove produced for the quarter probably about
125m of Nitrile gloves.
Total cost of production for the 3 months ending June comes out to be around
$4.572m.
Hence, cost of production per 1000/ pieces of Nitrile glove for the quarter works out to be about
US$25.96 per 1000 pieces.
Disclaimer that this figure can be grossly inaccurate as we don't know exactly how many gloves are produced in the last quarter. It has some figures to ponder with.
Current sale price of Nitrile Gloves
This information is readily available in the market. One can get from any analyst report covering the glove sector.
For July.
Spot delivery US$120 per 1000 pieces according to latest Phillip Securities research on UG Healthcare
Normal delivery US$60 per 1000 pieces according to latest UOB research on Sri Trang Agro.
https://research.sginvestors.io/2020/07/ug-healthcare-phillip-securities-research-2020-07-28.htmlPositive catalysts on 3 fronts1) Reduction in average cost of production per 1000 pieces as production volume increases.
2) Increase in Nitrile gloves production to 1 billion per annum.
3) Continued increased in average selling price as the pandemic continues.
All these will result in exponential increase in company's revenue and profitability. Do the Math.