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)

Hi pinnaclegrade u bought 8000 shares or 80000 shares?

cwc1981 wah u hold 16 years? I thought u born in 1981?

Other than that we should note that contribution of sales by Wistron was only 10% in 2022. We must not neglect the substantial revenue from musical instrument where demand on musical instrument such as guitar and piano remain strong in North Americal region, Europe and Japan. Maybe music is a must or maybe because IoT economy is growing despite high inflation and mortgage expenses.

Normally company like Sonos like to keep a few contracted manufacturers to compete with each other so the company is able to get a more competitive price. Hence, the diversion of some of the orders to, say Inventec. Therefore, can't blame Wistron giving less order to FPI. Early this year Sonos launch new product, so FPI and Wistron would have been busy too. This is a fast growing cake sliced half in 2022.

OEM is highly competitive and thin margin business model. The factory wont just keep 2600 workers to sit there drawing salary. With 2600 workers in the factory and improved automation, the productivity should be more or less the same as the total achievement in last year. Why would the boss keep the operators if there is no order?

Hi WkChia, this is my understanding on 2022 Q4 revenue down: Customers found that Q3 sales slowed down and too much stock to sell. Feared of over stocking, they put less order in Q4. So this is just to prevent storing too much old model. Whereas in 2023 Q1, they should have already order new models to compete with competitors. So Q1 sales will be normalised. This year shipping cost is a lot more reasonable and stable. It will be easier to plan production and shipment so a more flat delivery traffic can be expected compares to last year and so does the revenue.

Before that I suspect FPI no longer get Sonos order but I think I guessed wrongly. This is the more likely to be true: FPI is still getting Sonos order through Wistron through it has declined compare to 2021 but the order awarded could have been stable. Wistron is supporting in electronics and software while FPI is doing other hardware and assembly work I guess. Revenue contribution from Wistron in 2023 Q1 could be the same or slighly less than 2022 Q4. Expecting 7 sen EPS in Q1 as no more forex loss (forex had been stable in 2023 Q1) is expected.

Hi WkChia I think it is because demand slows down. But will pickup in Q2 or Q3. Q3 last year was extraordinary. Normalised sale is 200-250 mil every quarter.

Sorry, RM 249 mil

Hi Harison888, not 80 cent but around RM 1.03 but that was many years back. Anyway, revenue of 2023 Q1 will be around RM 211 mil.

Economy at Kunshan is bad. But I think that subsidiary is related to I-phone. But FPI is not involved in I-phone.

I believ it is due to bad news of another subsidiary of Wistron, not related to FPI.

Minor amendment in bracket. Someone mentioned the production cost / MT of CPO in the AGM. I have special feeling towards this question because I did spend a lot of time to do the cost analysis. If you are the one who raised the question and is reading this, I'd like to share with you my understanding on that. Assuming that labour salary, fertiliser, chemical and fuel cost (price) are flat throughout the year, then production cost / MT CPO will be highest in the quarter that produce the least CPO. This is because some of these costs and other costs are fixed cost, and are therefore cannot be divided evenly to CPO produced throughout the year.

Hi 3i, albeit a cyclical stock, there is a new baseline for CPO price. Eventhough fetiliser price is in the down trend but it is almost impossible for plantation worker salary to go down (unless hit by a big recession). Therefore the new baseline of CPO price would not be that low as we have seen in 2010s. At current economy outlook, there are not many better options than RM 15.80 / share UTDPLT. 7% to 8% dividend yield with very solid balance sheet and a management who is generous, kind and diligent... maybe you'd feel it more attractive than your small business if you have one. As I read through the AGM minutes, I feel the sincerity of management in responding to minor shareholders' interest.

Serious rainfall in Feb and Mar, extreme heat in Apr and May and many months to come... I think CPO output in Malaysia for 2023 will be reduced instead of increase 2% as predicted by many analysts... The production forecast might no longer valid. Inventories will continue to go down due to poor harvest. El Nino normally lasts 2 years or longer. So I think there will be shortage by end of this year.

Price is heading south on the fear of El Nino hurts crop yield

Although reported only 21 sen EPS, the actual EPS is 24.8 sen if we exclude the "demolition of useless assets of the old tile factory appeared to be 12 million on the book". Remembered I told ya one month ago they had demolished the Guocera old tile factory? Current share price is supported by sustainable and conservative dividend payout at 6% dividend yield. 2x FD rate with a very solid state of balance sheet. Not very exciting but something you could rate it as a "bond share" and especially good for people with very large capital to invest where capital safety is first with very reasonable return.

Next Q EPS 6.2 sen to 8 sen. More likely to be around 7 to 8 sen.

Good quarter result and whole year result soon to be announced. Hope to get historical high of final and special dividend.

It is very understandable if 2023 achieve slightly less than 2021 and 2022, say 10% less revenue and profit. This is because 2021 and 2022 were an unacceptional years with lots of one-off events. A performance that is 10% or even 15% less would be still an excellent result.

It could also be partially due to more expensive finance cost to hold the shares as BNM had just raised interest rate few days ago.

The very recent sell down especially yesterday is not likely from "early informed", unlike what was suspected before the announcement of Q4 result. This is because they would have already jumped off the boat long before and don't have to wait until now. More likey this time it is caused by "scared uninformed" and those who excercised share options but somehow failed to sell at good prices.

Hi Dhando, did you use the paid service?
Your 2022 Q1-Q4 EPS interpretation is about the same as mine. Unfortunately your averge price is higher.

Hi Vincent8864, to be conservative, just assume 21 sen.

Hi Dhando, after looking at the US import data, what are the good insight that you could draw from there? I'm not lazy to look at it myself but just want to know how other great minds think.

After asking yourself these questions and looking back at yourself, you'll understand yourself better.

If you have been watching this stock... and following this blog... and you think this stock is good... and you had the intention to buy... I don't know what are you waiting for...

Price too attractive today. Stop thinking about how good this stock is or you as a fundamental investor if you don't buy some at this price and but bought at price a lot higher before this. W.B. said if you are not going to buy more when the price drops heftily then don't buy it at all in the beginning.

The best timing to buy throughout the year. Isn't it? Very reasonable price just before the announcement of near record high quarter and annual result.

Had been difficult to collect ticket. No seller below 9.20. :)

Bullish. Price is heading towards RM 17.00.

1) How much EPS you think FPI will deliver for 2023 Q1?
2) How much EPS for 2023 Q1 would be enough to satisfy your expectation?
I will update and share my view by next Friday, if I do not forget. :)

Long-term investors have good patience and do not act and talk like a scumbag. Judge yourself.

Those who have guts to hold long-long are those who are not emotional. Those who give emotional statement and labeling themselves as long-term investors are pure liars.

The one dreaming himself 899. People with temperament like him won't be able to 899. The real conman is very mad when people contradict with him warning all bilis don't over take the risk to chase high destroyed his chance to sell at high. He is disappointed because has to hold99 instead of 899. "wakakakaka".

A lot of small business in US and Europe bankrupt. This trend is accelerating. All product sold to US and EU market will get affected LONG-TERM, not short-term. Don't buy when everybody get greedy like 899. Bilis must have a sharp mind to judge the very likely reason why 899 got mad. Those who intend to buy now, think twice. You have lots of opportunity to buy after some time. This time is not a good time. Too many greedy people now. And these greedy people already get stressed out like 899 and trying to attack people who shared opposite views. I think all of you have intelligence to judge what's the best for yourself.

Ooihk899 just inreased his bet before I give updates on warying info. And he is fustrated when I give warning just after he has bought more. He's really mad and hateful now. "wakakakaka"