LB Aluminium Berhad (LBAlum) will benefit from the analysis of US tariffs on Chinese aluminum products.
As a leading aluminum extrusion product manufacturer in Malaysia, LB Aluminium Berhad (LBAlum) will significantly benefit from the United States' tariff policy on aluminum products from China. The following is a detailed analysis of the benefits:
Benefits
1. Improved market competitiveness
The tariff on chinese aluminum products in the usa has increased from 7.5% to 25%, which will significantly raise the cost of chinese aluminum products in the usa market. As a non-china supplier, LBAlum can take advantage of this opportunity to expand its market share in the usa market.
2. Price Advantage
With the global aluminum price rising, LBAlum's product prices and profit margins will also increase. According to S&P Global Commodity Insights, the aluminum price is expected to rebound in 2024, which will drive the market demand for aluminum products.
3. Increase in Demand
The demand for aluminum in the usa market is expected to rebound in 2024, providing LBAlum with the opportunity to expand its market. The improvement in the supply-demand relationship in the aluminum market will also help stabilize and increase aluminum prices.
Profit Analysis
1. Market Share
- LBAlum can increase its market share in the USA by leveraging the disadvantages of Chinese aluminum products in the US market, thereby increasing sales revenue and market share.
2. Profit Growth
- The rise in aluminum prices and increased market demand will benefit LBAlum, with its profit margin expected to improve. The increase in aluminum prices not only increases sales revenue but also enhances the company's overall profitability.
Conclusion:
Overall, LB Aluminium Berhad will greatly benefit from the United States' tariff policy on Chinese aluminum products. The improvement of market competitiveness, price advantage, and increased demand will bring significant financial benefits to LBAlum.
These factors combined give LBAlum stronger growth potential and profitability in the future market.
If you need more detailed analysis or further information, please let us know.
Reference materials:
1. S&P Global Commodity Insights 2024 Aluminum Price Forecast
2. USA's Tariff Policy on Chinese Aluminum Products
Benefits
1. Improved market competitiveness
The tariff on chinese aluminum products in the usa has increased from 7.5% to 25%, which will significantly raise the cost of chinese aluminum products in the usa market. As a non-china supplier, LBAlum can take advantage of this opportunity to expand its market share in the usa market.
2. Price Advantage
With the global aluminum price rising, LBAlum's product prices and profit margins will also increase. According to S&P Global Commodity Insights, the aluminum price is expected to rebound in 2024, which will drive the market demand for aluminum products.
3. Increase in Demand
The demand for aluminum in the usa market is expected to rebound in 2024, providing LBAlum with the opportunity to expand its market. The improvement in the supply-demand relationship in the aluminum market will also help stabilize and increase aluminum prices.
Profit Analysis
1. Market Share
- LBAlum can increase its market share in the USA by leveraging the disadvantages of Chinese aluminum products in the US market, thereby increasing sales revenue and market share.
2. Profit Growth
- The rise in aluminum prices and increased market demand will benefit LBAlum, with its profit margin expected to improve. The increase in aluminum prices not only increases sales revenue but also enhances the company's overall profitability.
Conclusion:
Overall, LB Aluminium Berhad will greatly benefit from the United States' tariff policy on Chinese aluminum products. The improvement of market competitiveness, price advantage, and increased demand will bring significant financial benefits to LBAlum.
These factors combined give LBAlum stronger growth potential and profitability in the future market.
If you need more detailed analysis or further information, please let us know.
Reference materials:
1. S&P Global Commodity Insights 2024 Aluminum Price Forecast
2. USA's Tariff Policy on Chinese Aluminum Products
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BossMaxx OP : 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.
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