Perhaps taking realized losses is something that is difficult and sad to do, but having done my research and reviewing various factors which i will explain later on, i have decided to realized my losses which amount to around 17-20%.
To recap, Johnson Holdings is a cleaning company in Hong Kong that derives majority of revenue from government related cleaning projects such as sweeping roads, putting poison for rodents and cleaning of facilities etc. In FY 20/21 77.7% of revenue is from Government Related Tenders
At its latest financial year, it has generated 25.9 cents hkd of profit which translates to a PE of less than 4 as of the trading price of 0.98 as at 22 July
Divestment Reason 1: Shaky 2nd half results
Johnson Holdings generated 13.5 cents in 1H 2022 and 12.4 cents in 2H 2022. On surface it looks ok, However if i were to break up the results, the gross profit margins is actually lower in 2H 2022....