To understand more about the pace of customer placing order, read Roland's, Yamaha's, and Sony's report, their explanation on inventory management, sales forecast, trade payables to suppliers etc.

Please take note of increasing large shipment to Yamaha guitar starts from Mar this year. It is 2x the normal month order. Yamaha was the 4th largest customer placing order slightly less than Wistron. It will appear as 3rd largest customer this year I think. As for Wistron project, there is a close work with Wistron to win more project as disclosed in the AGM. That's the reason why 10-20 mil capex is allocated to put focus on enhancing the plastic injection.

I encourage you all to attend next time and take your note... while some answers can be standard these are still important for you to know... have a nice weekend.

Mr. On X Hau asked about how long the current economy impact is going to last on FPI and weather or not the worst has passed. The answer given was "my answer is... it depends on market conditions that is still evolving... at the moment we still seeing headwinds from inflation and interest rate hike." After pausing for 3 sec he continues "we can see a slow recovery from the 2nd half of the year." It was a spot question, it was not projected on the screen. This happened about 36 minutes after meeting has started. I think this is one of the most important info in the AGM.

If customers want to replenish stock in Q3, then FPI order will increase in Q2 (2 months ahead, value chain from China to Malaysia to US).

I think Yamaha's report explains this too. You can find it out.

That explains the great increase of inventory turn, be it FPI or FPI's customers.

Also customers want to reduce inventory holding because financing cost will be high (due to high interest rate) plus delivery lead time already improved a lot. So customers no hastle to place order like last year. So you can see this will create a "vacuum" timezone in placing order.

This I got from customers' website: Customers are doing stock adjustment (order less) because they still have stock. But they observed the sell-through remain strong. Sell-through means end customers (consumers) buy away from retail stores. Therefore for order to become normal again it has to wait for some time for the stock in warehouse to go to normal level. Most of the customers expect this to take 2 Q, namely Q1 to Q2. Cheers.

Hi cwc1981, that's what I have sorted out. As a conclusion I think demand is suppressed at the moment, with USD go a lot stronger in Q2 the profit margin would be widened to partially offset the headwind. I think I would stop here as it is dinner time. :)

Excluding forex gain/loss, actual revenue in 2022 was 5% lower than 2021. I think this one everybody is able to find out, just some maths.

As for the headcount of workers, the reply was to keep them for optimum level of labour needs. As for machine capacity it is not currently at occupied at optimum level. CAPEX will be 10-20 mil this year for new business and other activities.

Someone asked about the lots of cash held in USD. The reply was to continue to keep in the form of USD in view of its yield etc.... Maybe good interest income due to high interest rate... if 5% per annum this will bring about 10 mil interest income per year. Someone can cross check the net exposure in USD (cash + short-term fund + receivables - payables). Higher parts of receivables in USD and higher payables in asian currencies including RM i think.

Mr. Shih said FPI had not lost any customer. And recovery expected in 2H (probably based on order on hand he said that).

Hi Monetary. It didn't go as I wish / thought.

Waiting for result...

But one thing I beg to differ: use Seair to predict result.

You know lah the Chairman... some answers need to use brain juice to peel the onion... haha.

But I tell you I'm still digesting because did not have time to read all yet ya...

And Dhando did a good and correct analysis on 2022 EPS.

And so far my stand remains.

If I can jump to conclusion I would say share price will be able to recover not too long. Busy to do detailed info processing...

OK OK. Let me have some time to tidy up the things.... the slides were really fast....

Hi Pinnacle, see my pm :)

Books and Gurus say don't grab sharp knife. Contradicted. Theories are easy and known by everyone. It is a lot harder to make money because you got to know when theories fail.

Warren Buffet said be greedy when others are fearful. I hope he's right this time. ^_^

Expecting a poorer yoy Q1 2023 result but current price has gone too far away from fair value. Actually most of FPI's customers only slightly adjust / reduce FY2023 revenue outlook. I estimate the revenue in Q1 2023 to be somewhere close to RM 200 mil by using various methods.

If you have 3 bullets to shoot, I think it is a good chance to at least spend a bullet to shoot now.

yong1985cm, Maybe. But if he is insider, why now only take action? If he is not insider, why do we think he knew it earlier? If things are permanently bad, why major shareholders did not run? When company do share buyback, Wistron and 2nd largest shareholder and Mr. Shih himself are those who spent the most in buying back the most. These are board members right? I don't think they will do something against their own interests.

Small fishes like us will be safe to follow behind the share buy back. Rare opportunity. You have to wait once in a life time investing FPI.

If the big fish plan got jeopardised then he will quickly buy back to minimise lost today and before end of play tomorrow. If it is margin call then price will recover after tomorrow's announcement depends on the earning performance.

It should be equivalent to getting high single digit ROI without much effort put to win new projects.

If FPI feel difficult to get new orders then share buy back at low prices is another way to improve earnings for us.

Or someone purposely did that to chop of the hands of a hostile banker who use borrowed money to hold the stock. But I think this parang get stuck. Why not suggest a resolution in AGM tomorrow to buy back shares until 2.50? I think everyone will be happy to support.

Or maybe that big fish pursue other stock which he has no patience to wait

Maybe that big fish kena margin call.

Customer's concern taken care and at the same time CM carried out the work with some savings into the pocket loh.

So when a few factors come together hence the change to cater all these requirements loh.

Why need to re-design the flow of material, one valid reason is that Sonos want to protect the confidentiality of its product mah... if final assembly simply go here and there done by sub-con then secrets leak mah.

So in that case hor, FPI do not need to buy and resell some of the part, so you will see revenue contribution by Wistron going down but FPI is still selling the FPI-made components mah.

Maybe because of tax exemption for new factory mah.

Harison888, last time: EE part from Wistron --> Hardware body assembly at FPI
This time: FPI hardware body part --> Wistron do the assembly with their EE part.

Hi NatsukoMishima, I dunno will go to 1.50 or not, but I contribute some first. If go to 1.50 I contribute some more ya. Like in a war, you need to have 3 defence lines mah.

Hi Pinnaclegrade, I also contribute some :)

The big Mc is appearing.

3 million shares... I think it must be someone from 3rd to 30th largest shareholders who triggered the sell down.

I think I prefer FPI to do this and distribute the shares to us as share dividend. Let the company to do this for us as who else is smarter in investing FPI than FPI itself? :) Smart and right move Mr. Shih.

I guess that person must be an insider because normal people who lack of info would not dare / willing to hold a sharp knife. And that was beyond holding, setting a floor for the price drop. Now the puzzle is resolved, it was FPI who did it.

when I look at the trading process I knew someone big is holding the price at 2.35, at that time I did not know it was FPI buying back the shares.

Hi CWC1981, I can only think of 3 reasons:
1. the price drops to very attractive level, the return could be higher than its own business (likely)
2. to protect the company shares from being bought over by competitors or hostile takeover (likely)
3. the boss borrowed a lots of money to hold the shares and need company share buyback to support the price (I'm not able to judge)