Why PANTECH profit down ?

Pantech's profit down due to higher raw material costs and weak US dollar.

Summary of 2QFY2010 ended Aug 31, 2010.

Revenue - fell about 19% to RM97 million from RM119 million a year ago

Net Profit - down 37% to RM9.3 million or 2.49 sen per share
Dividend - good news is despite lower profit, Pantech declares 1.5 sen dividends per share (first interim single-tier
dividend of one sen per share and a special interim single-tier dividend of 0.5 sen)


For the cumulative six-month period ended Aug 31,

Revenue - fell 23% to RM187.45 million from RM243.29 million

Net Profit - down 37% to RM17.72 million from RM28.31 million
EPS - down to 4.74 sen from 7.57 sen
Net Assets per share unchanged at 66 sen per unit.


At the EGM, Pantech¡¯s shareholders approved the company¡¯s proposed a one-for-five bonus issue and a rights issue of up

to RM77.25 million of ICULS and 77.25 million warrants attached on the basis of one for every 10 ICULS subscribed.

They also nodded for the proposed waiver on the major shareholder CTL Capital Holding Sdn Bhd, which holds 13.75%
equity stake in Pantech, and several other parties from undertaking a mandatory takeover offer following the rights issue.

To hold or sell? Or wait for their bonus issue?
At the moment, probably will sell to swap with other stock.

What is your advise?