Worst over for raw material price trend? Daibochi’s 1H FY12/10 margins were affected due to the 3-month lag effect between an increase in raw material prices and a cost pass-through to end-customers. The main culprit of the raw material price increase was polyester film (27% of total raw material costs) which faced a shortage due to a major film manufacturer in Korea switching its focus from food products to the higherend electronic packaging products. We note that since June, of Daibochi’s entire raw materials requirement, only polyester prices have continued on an uptrend (+3-5%), wherease the others (Polyethlene resin, polypropylene resin and aluminium foil) have fallen about 5-10% from 1H10 averages.
Daibochi Berhad : Stabilising Costs; Electronic Packaging In Final Stages - 11/08/2010
No comments:
Post a Comment