Think Ahead

TTVHB proxy to AI

nelsonlim
Publish date: Tue, 07 Jan 2025, 09:55 AM
My TA is not technical analysis but rather think ahead.

This is my view gathered over the past 8 years that u can have high winning rate probability than others by thinking ahead.

TECHNICAL ANALYSIS:


TTVHB


EP 78-80c

CL close below 75c

TP follow pink line 855,925,995



Financial and Prospect Overview of TT Vision Holdings Berhad

1. Financial Performance

  • Cash Ratio:

    • Cash and bank balances: RM 30.37 million
    • Current liabilities: RM 21.91 million

      Cash Ratio = Cash / Current Liabilities

      = 30.37 / 21.911.39

      Interpretation: The company has RM1.39 in cash for every RM1 of current liabilities, indicating strong liquidity.

  • Profit Margin:

    • Revenue (9-month cumulative): RM 42.29 million
    • Loss after tax: RM (2.80 million)

      Profit Margin = (Net Profit / Revenue) x 100

      = (-2.80 / 42.29) x 100-6.62%

      Interpretation: The company is operating at a loss, leading to a negative profit margin.

  • Net Asset Value (NAV):

    • Total shareholders' equity: RM 111.81 million
    • Number of ordinary shares: 479.06 million

      NAV per Share = Shareholders' Equity / Total Shares

      = 111.81 / 479.06RM 0.23 per share


2. Reasons for Loss or Profit

  • Reasons for Losses in 2024:
    • Increased Administrative Expenses: A sharp rise in administrative costs to RM 13.66 million, mainly related to resolving equipment performance issues and future servicing cost reductions.
    • Foreign Exchange Losses: The weakening of the USD led to significant unrealized foreign exchange losses, impacting profit margins.
    • One-time Costs: The company incurred one-time costs for repairs and operational efficiency improvements.
  • Revenue Performance:
    • Revenue for the 9-months cumulative period was RM 42.29 million, an 8.6% increase compared to RM 38.95 million in 2023, driven primarily by deliveries of solar cell inspection and sorting equipment.
    • However, despite higher revenues, profitability was negatively impacted by rising costs and foreign exchange losses.

3. Upcoming Prospects

  • Business Expansion:

    • The company is involved in a joint venture with Autowell (Singapore) Pte. Ltd. to establish a manufacturing and R&D base in Malaysia for automation equipment, particularly in the solar energy sector.
    • This joint venture is expected to strengthen its position in Southeast Asia, Europe, and the U.S. markets.
  • Private Placement for Capital:

    • The company raised RM 12.5 million in its first tranche of a proposed private placement to finance its joint venture and enhance working capital.
    • The remaining placement shares are expected to bring in additional capital, bolstering future financial stability.
  • Market Outlook:

    • Despite challenges such as trade wars, geopolitical tensions, and economic uncertainties, the company reports that demand for its products remains favorable.
    • The management remains cautiously optimistic, given the complexities in international operations and the global semiconductor supply chain dynamics.
  • Innovation and R&D:

    • The company continues to invest in research and development, with a focus on next-generation optoelectronic and solar cell inspection equipment, positioning itself as a leader in precision technology solutions.

Summary

TT Vision Holdings Berhad faced a challenging period with a net loss due to increased costs and foreign exchange impacts, despite improved revenue. The company’s strong cash position and strategic ventures in the renewable energy sector indicate potential long-term growth. However, short-term recovery will depend on cost control, favorable exchange rate movements, and the successful execution of its joint venture initiatives.


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