We initiate coverage on Elsoft Research Berhad, an automated test equipment solutions provider, with a Add call and TP of RM1.15 Ability to Transform and Adapt. Over its 21 year journey, it has withstood two down cycles, but has successfully recovered each time. During the pandemic, it ventured into the development of a LED total test solution, with the higher value product leading revenues to current highs...bla...bla. Soon will out the research.
Elsoft Research Berhad researches, designs, develops, and manufactures test, burn-in, and application specific embedded control systems for semiconductor and optoelectronic automation industries in Malaysia, China, Taiwan, and internationally.
The company’s key products consist of test and burn-in systems. Majorly the company’s products are used in image sensors and automotive lightings.
The company offers embedded peripherals, industrial remote IO peripherals, motion control products, and industrial IO ISA and PCI bus products. It also provides automated LED test equipment, LED burn-in systems, and solar cell testers. Elsoft Research Berhad was founded in 1996 and is headquartered in Bayan Lepas, Malaysia.
Now is not the time to enter with another MCO looming. Look at their past reports on how their business has been disrupted by the closure of international borders. I would wait until this new MCO is over or for the price to drop below 60sen before entering.
Don't know about other companies but quarterly reports for elsoft state that they cannot do business if international borders are closed. Anyway you are free to interpret facts however you like, if you think that it won't go down if MCO is declared then continue to collect lor.
u got read until the end? the group is confident about the fundamental all this year.they are working on somethings. its been confident for pass 3 quarter. the group mentions.
I've been following for more than a year, just don't really post much, collected a lot as the price went from 80sen down to 30 sen and exited on monday. I'm planning to go back in when the daily cases stabilise or the price becomes more compelling vs risk. Yes they have new R&D but many of their clients are overseas so they need their people to fly there to help their clients with installation which is not possible right now.
Honestly, this is a good and well run company, buy and hold is not wrong, but with MCO looking more and more likely, the price going down is inevitable.
If you read the quarterly reports, Elsofts problems over the past year had nothing to do with local factories being unable to open and everything to do with being unable to fly their people overseas to install their machines and train their clients personnel in using the equipment. The training bit can be sorted out with teleconferencing and all that, but the installation of their machines can't, it seems.
Its upcoming series of ATE include automotive headlamp tester catered to multibeam headlamps and smart devices LED flash tester designed for the next evolution of smartphone flash module. This is local fund house research. They also know quite sometimes, and it’s been hard for them collect the tickets as well. Now they fly the price , u chase u cl they take ur tickets. If not really very hard to collect this counter.
U want to know the prospect for Penang Silicon Valley? Our gov want turn batu Kawan to tech hub. This year u will see alots of multinational tech company setting up in batu kawan. Right now I already see 4 of them will come in. Sure will benefits local semicon, ems, life sciences etc. This year is ems n tester bombing year.
Actually, did they announce that they'd found more clients to buy their products? Last I checked they only had one major client who was responsible for most of their sales but is unfortunately based overseas.
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....
cheer76
346 posts
Posted by cheer76 > 2021-01-06 17:33 | Report Abuse
TG good biz also down, dont worry about the biz. Important is fund manager role, not the elsoft biz