"Do you know TSMC is the only company capable of producing 7NM chips and successfully commercialise it. This is considered an advantage or what Warren Buffet would call a "moat'."


"That's why Warren Buffet bought Apple as the advantage is much greater than TSMC. Basically, Apple hold the TSMC's balls. If someones else could produce 5NM next year, then ......."


@Newbie8080, if i read you correctly, You were referring 7nm is "moat" in earlier sentence. But you are contradicting say someone else may produce 5nm next year..

So, is the 7nm a moat to TSMC?

7nm is consider history, now they are into 3nm, not 5nm

Newbie 8080, you are right. There are competitors in any field. Even Frontkn management has highlighted this in news article. My stand is very simple, there are things that you can buy from anyone (pasar malam), there are things that you just can't simply switch supplier, especially in technology. The process of validation is much more costly than switching. The benefit of switching must be way way above the vendor change. Agreement will be signed. Early vendor always has advantage.

About 7nm, yesterday i posted one news about 7nm.

My investment style is 95% street smart: 5% book smart. I'm not a good student

Moat - definitely in the 5%. Malaysia companies so far don;t have moat. We are developing country, not developed country. so, my view is we better focus on the 95%.

Just my 2 cents

Posted by newbie8080 > Sep 27, 2018 10:28 AM | Report Abuse

@ YiStock

PEG computation depends on the company's growth especially in the future.
Unfortunately, we only have data comparison 2017 against 2016(losses) and partial of 2018 with 2017.
But I remember that you mentioned in write up, that Taiwan Ares Green is not the only precision cleaner. I've google and noticed that there are more than 5 companies with size larger than Ares Green.

Just as Apple could switch supplier, TSMC could switch to any of these precision cleaners as well.

Do you know TSMC is the only company capable of producing 7NM chips and successfully commercialise it.
This is considered an advantage or what Warren Buffet would call a "moat'. That's why Warren Buffet bought Apple as the advantage is much greater than TSMC. Basically, Apple hold the TSMC's balls. If someones else could produce 5NM next year, then .......
Apple is the only crazy company in the world that sells the most expensive phones every year, undisputable.

Just my 2 cents.

@ newbie8080, noted your point. I will follow the audited sum (page 72)

Newbie8080, try use PEG see.

newbie8080 TSMC is trading at PE 19. Isn't it more logical to buy TSMC as compared with Frontken trading at PE 26 and waiting for bread crumbs.
26/09/2018 21:00

Newbie8080, chairman says RM 55.6 mil (audited) against RM 57.5 mil (unaudited)in my revenue table. Not sure which RM 46 mil you are referring to.


newbie8080 Why the revenue from Singapore is stated at RM46mil in the segment revenue table as compared with revenue that is stated as RM55mil in Singapore from the Chairman's message?
26/09/2018 20:57

https://www.cw.com.tw/article/article.action?id=5092040

http://www.icinsights.com/data/articles/documents/1103.pdf

http://www.insage.com.my/Upload/MediaNews/FRONTKN/FRONTKN-SinChew-12092018.pdf

Noted with thanks pputeh

PPuteh, based on the adjusted price chart, 2016 - 2017 price was below 33 cents to 70 cents. At current 3.65 level, you have a whooping 5 times to 11 times return, that is certainly remarkable. Congratulations!!! I trade the stocks while Mr OTB recommended back in 2015. Really hold firm to it only towards mid 2017. Please share your stock picks. Hope to find gems from your current holding. :-)

May go 4.30 to 4.70 in next few months, both FA & TA


pputeh/ Hits highest ever after the split a year ago. 3.68. this morning. Patience pays. Hope Will be able to hit 4.00 by Dec 2018
20/09/2018 10:16

Inari relies heavily on apple iphone. Q2'18 poor result is within expectation where the whole supply chain experience lower loading volume. Excess inventory in supply chain need to be cleared first. Based on article above, the inventory has kind of back to normal in the supply chain.

Looking forward in Q3, personally i anticipate a favorable response by current iphone holders to upgrade to iphone 7, Iphone 8 and entry level iphone Xr which are now price at very much affordable level.

Pre-order is in Sept 2018, which means Inari and Gtronic should experience massive loading in early Q3 2018 (jun - Sept).

While this year all new iphones come with faceID, Gtronic i'm particularly in favour.

Inari expansion is massive. 5G will need more content and inari should experience explosive jump in earning. I see now a good entry point.

stock_investor/ thank you for great article...mind share about prospect of inari as qr mention it will be challenging in the coming qr?
14/09/2018 09:58

Penta's carrying inventories level has jumped up by 22% in Q2 18 compared to Q1 18. Disregard the overall bearish market sentiment, fundamentally Penta upcoming Q3 18 result should jump significantly.

same thoughts.. that's why keep buying..

Posted by pputeh > Sep 12, 2018 10:03 AM | Report Abuse

YiStock , no worries right decision to buy if for long term. Earnings are on the rise. Needs patience. Is as good as Vitrox. Give it time for earnings to improve. Investment is not a week or a month's affair. Give it a year . My humble take

too bad for me as i keep buying still

very lucky sincere_analyst do not hold penta.

Based on confirmed Order Book of RM 38.4 mil as of 28 May 2018, which is expected to deliver in Q3 2018, Mi Equipment certainly need to quickly boots up its order book to avoid a vacuous before the new factory is ready.

Anyone has latest order book details, kindly share. Thank you


Stock: [MI]: MI EQUIPMENT HOLDINGS BHD
Aug 28, 2018 08:03 PM | Report Abuse

Remarkable result!

But do take note that the latest quarter result includes net forex gain of 3.7 mil, other operating income of 2.8 mil, and listing expenses of 1.6 mil. That give a net core earning of 11.7 mil.
More importantly, latest EPS calculation is not based on 500 mil outstanding shares.

Therefore, core EPS for latest quarter is 2.34 sen

Remarkable result!

But do take note that the latest quarter result includes net forex gain of 3.7 mil, other operating income of 2.8 mil, and listing expenses of 1.6 mil. That give a net core earning of 11.7 mil.
More importantly, latest EPS calculation is not based on 500 mil outstanding shares.

Therefore, core EPS for latest quarter is 2.34 sen

Special note: With the iphone X inventory normalised, i think is fair to expect the demand for Gtronic light sensor for Iphone X should also recover. On top of the demand for 3 new model iphones to be launched in September 2018

cup & handle. target 3.10

I think unlikely. There is major shift in biz fundamental.

Pampers, mixed feeling. At least no heart wrenching after follow frontken so long. Too bad no hear from gimmy2u anymore...remember those days when we dig all the info.

Change in major shareholdings:
Despite the huge price discounts (transacted at RM0.39/share), we perceive the deal positively due to (1) the removal of any potential conflict of interest and risk; and (2) the buy-in from a reputable and savvy private equity fund solidifies our belief about Frontken’s future prospects

http://klse.i3investor.com/blogs/hleresearch/168488.jsp

hong leong target RM 0.84

Posted by YiStock > Aug 4, 2018 01:55 PM | Report Abuse X

How many companies in bursa has the ability/ prospect to attract large private equities funds become the shareholders? I would prefer to add some more stakes. Forget about the reported transacted price, you will never know what is the actual transacted price. Cheers!!!

31.5% discount to be exact. Dated 24 jun 2015

7210, back in 2015, cp asia acquired frontken with big discount too.

Newbie8080, yes..only cp asia hold such huge block. I 'm referring to cp asia hold stake in dazzle clean ltd through share swap. Ng wai pin too, hold share in dazzle clean,
so it is deemed interest. Thats why it is annouced as deemed interest. Anyway, wait and see if got annoucement of cp asia ceased to be substantial share holder. Personally i think dazzle clean is the vehicle.

Personally i think CP asia is still on board via indirect interest through the above equity fund. Anyway, let see if there is any annouvement of cp asia ceased to b3 substantial shareholder

https://klse.i3investor.com/blogs/frontkn/79006.jsp

Scroll down to see previous transaction.

Waiting to see fronken to hit RM 1.00...ya...RM 1.00 is in my head..

The emerging of cp asia in 2015 brought frontken from 0.15 to 0.56. The emergence of dymon asia will bring frontken to RM 1.00? Of course it is RM 1.00 in my head.

Ng wai pin becomes largest shareholder via deem interest has offered me a good form of confidence.

How many companies in bursa has the ability/ prospect to attract large private equities funds become the shareholders? I would prefer to add some more stakes. Forget about the reported transacted price, you will never know what is the actual transacted price. Cheers!!!

TP: RM 1.00

http://www.profitf.com/articles/patterns/cup-handle-chart-pattern/

based on my tracking, coming Q2 result should be in the region of RM 25 mil

2017 annual report

https://klse.i3investor.com/blogs/frontkn/155157.jsp

ams laser array appears on Android platform 10 Jul 2018

VCSEL-based face recognition technology from the Austrian sensor maker features in a new Xiaomi smart phone.

http://optics.org/news/9/7/13

the same question investor query for the past 4 years in i3. I witnessed it myself till today.

Next TP:2.95 to 3.14

Posted by YiStock > Jul 13, 2018 09:50 AM | Report Abuse X

looks like a cup & hand

https://www.electronicsweekly.com/news/business/531830-2018-07/

"SEMI forecasts that, in 2019, equipment sales in China will surge 46.6 percent to $17.3 billion. In 2019, China, South Korea, and Taiwan are forecast to remain the top three markets, with China rising to the top."

https://electroiq.com/2018/07/62-7b-semiconductor-equipment-forecast-top-previous-record-korea-at-top-but-china-closes-the-gap/

chankp7010,

Q1 2018 F&B segment Loss Before Tax was amounted to RM 326k while Profit Before Tax for plastic segment was RM 10.1 mil.

I would say the F&B segment P/L is really not significant at the moment.


Posted by chankp7010 > Jul 16, 2018 12:14 PM | Report Abuse

May I ask YiStock if you had taken into account the losses incurred for the food and beverages dept? If Q 2 profit is above RM12 mil, then the price will definitely move north soon. Thank you.

based on raw mat price trend, Thong Guan Q2 profit should go back above RM 12 mil.

Expecting Singapore segment will have significant contribution from Q2 to Q4 18.

looks like a cup & handle

Laugh die me...

Based on Item 4 of the document, total funding required for the purchase is RM 638.04 million. This deal will caused the total borrowing jump to Rm 782 mil from RM 248 mil. Lion industry itself has deficit operating cash flow of negative RM 39 mil (3 quarter ended 31 march 18) despite registering Rm 153 mil profit. The additional borrowing will likely give a much bigger burden to interest expenses.

Looks like there are more cons then pros since the industry remain very challenging. Conflict of interest is quite obvious. Although some money goes to debtors, still the owner will benefit because the debt now need to be bear by all Lion Ind's shareholder.

It seriously look like a bail out case.

"This should expand light sensor capacity by 24% to [46m units] per month (from 37m units previously) by July/August 2018. Likewise, capacity for the gesture sensors will also be increased by 3m units to [14m units] to cater for additional demand for an end-customer’s wireless headphone earbuds.

http://klse.i3investor.com/blogs/hwangdbs/163455.jsp

(1) If Ringgit continue weaken, we can expect margin to improve further.

(2) The interest income is expected to be NOT significant.

Bases on the listing doc, around RM 90 mil only will be channeled back to Malaysia for PCB expansion. Their principle bank Ambank offer only 3.35% p.a. max for FD. Short term placement depend on tenure but the annual effective rate will not be super duber good as usual.

Penta's 2017 effective interest income rate for FD is only at 3.00% compared to 3.55 in 2016. Even short term investment they got at 3.37% only vs 3.57% p.a. in 2016.

Worth to note that a large sum of their money are in USD denominated account which give around 0.4% interest p.a. only. The sum is mainly for managing currency risk i suppose.

Assuming RM 90 mil from HK they channel back to malaysia and all put in FD, i roughly calculated PCB will have around RM 104 mil in ringgit denominated cash. That make up around RM 910k interest per quarter only, provided they don't use the money. But, that is not the purpose they do listing in HK.

(3) As for new plant, you still need to fill it up with more engineers and workers, plus new order book. Therefore, my projection is only based on current order book with condition of smooth order book replenishment. If they fail to increase order book, penta will crash.


BlackPenta: Kobe / YiStock, I think you are being very stingy of according 19% PAT Margin. First the PAT Margin for Q1 is more than 22% (after adjusting listing expenses). Second, how about the additional income coming from interest income given that their cash on hand is close to RM300m as at 31 March 2018, and cash from operating profit before working capital changes of more than RM20m per quarter. Third, the new plant which schedule to operate soon, should give the company more capacity to do more orders. Hence, my target is Q2: RM105m, Q3: RM110m, Q4: RM130m (Q1: RM99m). Total annual: RM444 million. PAT Margin 25%: RM111 million. Buffer 90%: RM100m. Cheers!
01/06/2018 21:42