hi. im not very familiar with jcy. i think it is supplier of hdd components. hdd still have a huge demand in the world. as for the financial part, jcy has huge pile of net cash in the company so it is healthy.
Smart phone led testing sud be ok. Automotive i think will have fall in demand. Dialysis machine take time to grow but it has future as ageing population in Europe and US.
• ELSOFT closed 2 sen or 2.9% higher to RM0.70 last Friday.
• Recent trading activities supported by higher trading volume suggest buying momentum is gaining traction. With the bullish state of key indicator MACD, share price is likely to move higher.
• From here, resistance levels are expected at RM0.730 (R1) and RM0.815 (R2).
• On the downside, support levels are identified at RM0.650 (S1) and RM0.550 (S2).
what kind of company is this?... yearly revenue RM37mil but investment in unit trusts RM57mil?! this is the problem when you have 75% of orders concentrated in a single customer, if that customer down and you will go down with them... so tech company turned into investment company? do they have the expertise in investing? will next quarter result report massive loses because of their unit trust investment price drop during covid crisis?.....
I won't worry much about their unit trust investment, looking at the value change from Dec19 to Mar20, I believe they have invested in fixed income trusts, like bond or money market funds, which in my opinion are almost equivalent to cash. In fact, it is good that they still have so much cash&cash equv during touch time like this.
However, I think next quarter wont be good, as there is still travel restriction. They can't travel and setup, thus less revenue generation. Besides, there will be higher loss in their investment in "tourism", ie : Entopia..:-(
I have invested in Elsoft even before they moved to the main board. I am very confident that they will come back even stronger after the pandemic.
Elsoft 52 weeks high RM 1.08.its a debt free co. shareholders received div 4.5% +-.Better than FD.Elsoft profit 50% goes to div.hope management will be more aggresive to secure more profit attract more investors buy this stock..extra cash they invest in unit trust nothing wrong.rather than they put the money in current acc with earning low interest or no interest at all. .this year may not be a good year for many co. if got holding power just hold. no offence.just sharing.
I guess most of the companies next qr will not be good. Mudzaffar you need to ask yourself, are u a trader or investor? Are u able to hold your portfolio for a period of time? If yes, then I don’t see any issue of investing in this fundamental growth company. :)
Outlook While we were earlier optimistic for FY20 to be a better year for Elsoft, we now expect its performance to be muted YoY due to disruptions to operations (i.e., prolonged delivery, setup, qualification, and acceptance of its ATE by customers) posed by the COVID-19 pandemic. With the MCO extending into 2QFY20, we expect to see continued weakness during the quarter but with improvements in 2HFY20.
Notwithstanding, there remains prospects for the group from its new series of ATE as well as medical devices which if well received by customers would present upside to our forecasts and be a re-rating catalyst. Its new series of ATE include the smart devices segment’s LED flash tester designed for the next evolution of smartphone flash module and automotive segment’s headlamp tester catered to multibeam headlamps which are still in a nascent growth stage.
Valuation & Recommendation Following the earnings downgrade and rolling forward our base year valuation to CY21 based on a PE multiple of 15.0x, our TP for Elsoft is lowered slightly to RM0.62 (previously RM0.63). And with the unfavourable risk reward potential at current levels, we downgrade our recommendation on Elsoft from Buy to Sell. Key risks include: i) prolonged COVID-19 pandemic, ii)single customer concentration, and iii) poor acceptance of new products.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
aliyusof
1,393 posts
Posted by aliyusof > 2020-04-22 15:23 | Report Abuse
Icepumpkin, i am real newbie in stocks not u, i think. Elsoft is good company. How about JCY?