LB Aluminium Berhad (LBalum) will benefit from analyzing the US tariff policy on Chinese aluminum products
As a leading manufacturer of aluminum extruded products in Malaysia, LB Aluminium Berhad (LBalum) will significantly benefit from the US tariff policy on Chinese aluminum products. Here is a specific benefit analysis:
Benefit points
1. Improving market competitiveness
- US tariffs on Chinese aluminum products were raised from 7.5% to 25%, which will significantly increase the cost of Chinese aluminum products in the US market. As a non-Chinese supplier, lBalum can use this opportunity to expand its share in the US market.
2. Price advantage
- As global aluminum prices rise, lBalum's product prices and profit margins will also increase. According to S&P Global Commodity Insights, aluminum prices are expected to rebound in 2024, which will drive market demand for aluminum products.
3. Increased demand
- Demand for aluminum in the US market is expected to rebound in 2024, providing LBalum with an opportunity to expand the market. Improved supply and demand relationships in the aluminum market will also help stabilize and raise aluminum prices.
Profit analysis
1. market share
- LBalum can increase sales and market share by exploiting the disadvantages of Chinese aluminum products in the US market to increase its export share in the US market.
2. Profit growth
- LBalum will benefit from rising aluminum prices and increased market demand, and its profit margin is expected to increase. The rise in aluminum prices has not only increased sales revenue, but also increased the company's overall profitability.
Conclusions:
Overall, LB Aluminium Berhad will greatly benefit from the US tariff policy on Chinese aluminum products. Increased market competitiveness, price advantages and increased demand will all bring significant financial benefits to lBalum.
The combination of these factors makes lBalum have stronger growth potential and profitability in future markets.
If more detailed analysis or further information is required, please do not hesitate to let us know.
Reference:
1. S&P Global Commodity Insights 2024 aluminum price forecast
2. US Tariff Policy on Chinese Aluminum Products
Benefit points
1. Improving market competitiveness
- US tariffs on Chinese aluminum products were raised from 7.5% to 25%, which will significantly increase the cost of Chinese aluminum products in the US market. As a non-Chinese supplier, lBalum can use this opportunity to expand its share in the US market.
2. Price advantage
- As global aluminum prices rise, lBalum's product prices and profit margins will also increase. According to S&P Global Commodity Insights, aluminum prices are expected to rebound in 2024, which will drive market demand for aluminum products.
3. Increased demand
- Demand for aluminum in the US market is expected to rebound in 2024, providing LBalum with an opportunity to expand the market. Improved supply and demand relationships in the aluminum market will also help stabilize and raise aluminum prices.
Profit analysis
1. market share
- LBalum can increase sales and market share by exploiting the disadvantages of Chinese aluminum products in the US market to increase its export share in the US market.
2. Profit growth
- LBalum will benefit from rising aluminum prices and increased market demand, and its profit margin is expected to increase. The rise in aluminum prices has not only increased sales revenue, but also increased the company's overall profitability.
Conclusions:
Overall, LB Aluminium Berhad will greatly benefit from the US tariff policy on Chinese aluminum products. Increased market competitiveness, price advantages and increased demand will all bring significant financial benefits to lBalum.
The combination of these factors makes lBalum have stronger growth potential and profitability in future markets.
If more detailed analysis or further information is required, please do not hesitate to let us know.
Reference:
1. S&P Global Commodity Insights 2024 aluminum price forecast
2. US Tariff Policy on Chinese Aluminum Products
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
BossMaxxOP : LB Aluminium (LBALUM) Inventory Analysis
According to the latest financial report, LB Aluminium's inventory status as of April 30, 2024 is as follows:
inventory data
- Inventories: MYR 145,691,000
profiling
1. Inventory level: Compared to MYR 141,526,000 on April 30, 2023, there was a slight increase in inventory. This indicates that the company is storing more aluminum products, possibly to cope with future market demand growth or price fluctuations.
2. Current assets to liabilities ratio:
- The total current assets are MYR 687,584,000, which is much higher than the current liabilities of MYR 379,853,000, which shows that the company has strong solvency in the short term and has sufficient current assets to support its operations.
- Current assets include a large amount of inventory, which further indicates that the company is preparing for future market demand.
3. Cash flow:
- The company holds RM40.570,000 in cash, which is small compared to short-term loans, but sufficient to support daily operations and short-term capital requirements.
Conclusions:
LB Aluminum currently holds a large amount of inventory and its financial position shows strong liquidity and solvency. The company's inventory level reflects its readiness to meet market demand, while also benefiting from rising global aluminum prices and the US tariff policy on Chinese aluminum products.
High inventory levels indicate that the company expects future market demand to increase and use current price advantages to accumulate inventory.
laucsh77 : BO 0.59...hold tight...huat ah