when they dump buy and buy then sell and sell when up

mkt sediments and I think the the bosses selling down the DRP they will be receiving on 18

coming soon, once bonus 9 for 10 announced

All the same style, force force force

just wake up liau

must say go north or south

dalpinia are you sure

down from 50+ see how it will move up to 40

Forcing is the trick of the trade

buy more gain more

In china, them mkt crush until pple got to sell houses, so no money to buy shoes

should be credited a night before listing of the new warrant day, got to check every morning before trading starts

687423 haha why want to stay under the durian trees, stay outside also can collect the durians

amywo haha, I must get hold of a crystal ball first. I am just guessing

See what I mean

Director disposing shares maybe for a purpose - to the char koay teow sellers

Cheers to all shareholders and supporters of Elsoft, and a big big like to the dedicated team

still waiting for the div announcement

kingsonlen, sorry I dont have the pdf format

the write up are from Macquarie

Good morning Tianjin, yes still holding on, yesterday was really superved. Collection by foreign fund, looking forward to RM2 again.

Ø Medical devices a new growth driver. ELSR’s other biz, Embedded Peripherals, has >10 years of experience designing, developing and integrating embedded systems (ES). Mr Tan expects ELSR to launch ES for controlling medical devices in 2H15, which should positively impact results in late-2015 or in 2016. Conversations with Mr Tan reveals that this ES is used in machines for peritoneal dialysis (PD), which is going through final stages of regulation certification, and approvals could come as soon as end-Jun’15 (although some delays could be expected).

Ø Significant potentials ahead. Medical division (all ES) already contributed to 3% of FY14 revenue – I understand from mgt that this was on the back of some 200 units of ES (incl. sensors etc) produced for its customer (ELSR as sole supplier). News reports suggest that there were some 30k people on kidney dialysis in M’sia in 2014, and the number is increasing at 5-6k pa. Admittedly, it is still early days to anticipate market acceptance for PD, but assuming a 10% penetration rate to all dialysis patients, alongside a backward calculation of potential rev per unit (with some discount for bulk production), ES could potentially contribute, over time, an additional RM17.5mn in revenue (c.40% of FY14 revenue) on my estimates.

Ø Strong margins & profitability, zero debt. Except the tough FY09 in face of global economic recession, ELSR’s GP margins have ranged between 37-48%, while net margins has been hovering around 39-45%. ROE has also been on an uptrend – it achieved 30% ROE in latest 1Q15 results, vs 10% recorded in 1Q12. ELSR does not have any debt on its balance sheet. It had RM14mn in cash as of end-Mar’15 (4.6% of mkt cap). It also does not require any more significant investments for the ES for PD machines.

Ø Pioneer status helps via lower tax rates. ELSR has in the past 2 years paid 4-5% PBT in taxes. It pays below statutory tax rate, due to a 100% tax exemption from Pioneer Status of Section 4D, Promotion of Investment Act, 1986. This pioneer status will last for 10 years, up to 2024. Also worth noting on the investment/efficiency front – ELSR is a very lean company with only 62 headcount. Productivity measures by revenue/profit per employee improved significantly over the past 3 years.

Ø Growth prospect / guidance. ELSR’s revenue/NP grew at a 4y CAGR of +41%/+51%. Due to a good 2Q14, mgt is expecting a profit contraction in 2Q15. Orderbook however remains strong at RM18mn. To put numbers into perspective, ELSR generated RM45mn in revenue over FY14. Mgt expects FY15E numbers to be flattish y-y without add’l contribution from medical division. But as highlighted above, I believe there is meaningful potential upside once approvals for the PD machines are obtained.

Ø Associate companies to help growth. ELSR also owns 2 associate co’s: (1) 30% in Lesoshoppe.com – a B2B trade portal for Test and Measurement Instrument, which is exploring listing for ASEAN/Asian market expansion to unlock investment value; and (2) 21% in Butterfly House (Pg) S/B – operator of the Penang Butterfly Farm, which is currently undergoing a major expansion exercise and should contribute positively next year. Mgt expects associate co’s to generate >10% of ELSR’s bottom line.

Ø Performance & valuations. ELSR got its breakthrough in mid-2014, and share price has stayed around RM1.50 levels since then. It has gained +22.6% YTD, outperforming KLCI (-2.2%) and FBM Small Caps (+4.3%), but below the KL Tech Index (+30.7%). It is currently trading at 13x trailing FY14 P/E. Similar companies in M’sia like Vitrox (NR) and VSI (NR) are trading at 11-14x fwd P/E (BBG). Another comparable, Advantest Corp (6857 JP, OP) trades at 19x fwd P/E. ELSR has a div policy of >40%

· Elsoft Research (ELSR MK, RM1.68, NR, Mkt Cap: RM304mn) – Huge potentials ahead for this low profile, but high quality small cap… Melissa and I made a trip to Penang sometime last month (we are organising a conference there in July – details at bottom of email), and met with a couple of Penang-based companies. One that really caught my attention was ELSR, which is a leading Automated Test Equipment (ATE) supplier in the industry. Key takeaways from the meeting with Mr C.E. Tan (Group CEO) are as below –

Ø Core biz still doing well. ELSR’s bread-and-butter is research, design and development of test & burn-in systems. Its key customers are manufacturers of optoelectronic devices (e.g. LED, image sensors, automotive lightings), and ELSR helps test their products before launching into the market. Mgt expects higher contributions from the Auto segment due to the adoption of Day Running Light (DRL). At the same time, contribution from the Smartphone sector will be lower in comparison, as there are fewer new smart devices requiring test equipment with new functions. In 2Q15, the group had secured orders for 30 units of LED test equipment with a market value of RM15mn – of the 30, 20 are for automotive sector.

Ø Medical devices a new growth driver. ELSR’s other biz, Embedded Peripherals, has >10 years of experience designing, developing and integrating embedded systems (ES). Mr Tan expects ELSR to launch ES for controlling medical devices in 2H15, which should positively impact results in late-2015 or in 2016. Conversations with Mr Tan reveals that this ES is used in machines for peritoneal dialysis (PD), which is going through final stages of regulation certification, and approvals could come as soon as end-Jun’15 (although some delays could be expected).

Tianjin, what say you

no warning to shoot

now that the support have been broken, what is the next support level

then will knot off 0.05 sen off the share price after XD but got only 0.02 as div

good meh, results boarder line only,

looks good from the qr announcement but pple taking profit from the new listing, just wait till next week then only see how

who buy shares dont want to contra gain, if cannot only have to pick up and keep haha

Self talk self song

haha, stay await so late, what is the use US up 200+ pts, our mkt is like shit

playing conman ctr, you must con them before they con you

Fitch downgrade RM down

supernova, ya I also think that way, is warrant follows mother

today down is because of warrants exercised. Let the mkt absorbed these new shares before it can go north again

dragging its feet

collecting until my hands are longer then the legs

Andy as lclwyp say lo, dont want to lose the .0003 after xd

why why tell me why you are not moving

Taipa sure bo

throw liau meh, I am still keeping

Pardon on the way

"arrange" EPF to buy?

actually this type of ctr, want to sell must sell, want to hold then hold, no 2 way, if a matter of mins, will down and cannot sell aldy and want to up also in mins.

yes, but keep eating le

saltfishfish also become alive, I took the cue from there

hi wikileaks, say something la, laughing only, we dont know waht to do

Take care lo, what I heard is the results wont be that good lo

haha nice answer, only way is just try to jump out when the trap is low