I attended the AGM 2 days ago. Some sharing of what I heard during the AGM.
The management explained the reason for low EPS this quarter is due to over-emphasis of RND resource is put onto the new Lumiqs products which saw the slowing down of the existing customers (ODM)project bidding and completion. However, this will be corrected in the coming the quarter. Hence, the low EPS is a one time deal. The investors should be not be alarmed with a single low EPS quarter. The management explained the relationship of IQGroup with the customers are very close and the existing ODM business with the customers are strong and not as reflected by the current low quarterly EPS.
In addition, the management seemed pretty excited and positive with the new Lumiqs products and disclosed the sale Lumiqs products will increase especially after the 2nd generation of products to be introduced as well as the new introduction of the product into big new North America market. Furthermore, Lumiqs products are also invited to be co-tendered for new projects by some existing customers (big companies in their countries). The (OBM) Lumiqs products will put the company into the growth as its profit margin is much higher as compared to the ODM projects.
I am pretty positive after attending the AGM and I am glad that the price of IQgroup is currently dropped due to latest low quarterly EPS. I will defintely buy some more if the price of IQgroup persists next week. As some will say "Every crisis presents an opportunity", and I believe it is the case now.
Stock: [IQGROUP]: IQ GROUP HOLDINGS BHD
2017-09-01 12:47 | Report Abuse
I attended the AGM 2 days ago. Some sharing of what I heard during the AGM.
The management explained the reason for low EPS this quarter is due to over-emphasis of RND resource is put onto the new Lumiqs products which saw the slowing down of the existing customers (ODM)project bidding and completion. However, this will be corrected in the coming the quarter. Hence, the low EPS is a one time deal. The investors should be not be alarmed with a single low EPS quarter. The management explained the relationship of IQGroup with the customers are very close and the existing ODM business with the customers are strong and not as reflected by the current low quarterly EPS.
In addition, the management seemed pretty excited and positive with the new Lumiqs products and disclosed the sale Lumiqs products will increase especially after the 2nd generation of products to be introduced as well as the new introduction of the product into big new North America market. Furthermore, Lumiqs products are also invited to be co-tendered for new projects by some existing customers (big companies in their countries). The (OBM) Lumiqs products will put the company into the growth as its profit margin is much higher as compared to the ODM projects.
I am pretty positive after attending the AGM and I am glad that the price of IQgroup is currently dropped due to latest low quarterly EPS. I will defintely buy some more if the price of IQgroup persists next week. As some will say "Every crisis presents an opportunity", and I believe it is the case now.
Happy investing!!