NTA 0.25 , 0.865, RSI > 70, Bursa Indexes all red, profit-taking market sentiment, Bursa warning of "PnD" risk, e-commerce theme play, these ingredients serve as guiding indicators?
in this few week, i see the chart shown that still no big investor/ volume sell out yet~ if this situation continue~ the stock price will hit 0.95 in next week~ cheers
Thank you very much for chl1989 and hitrun. The true hero who recommend this stock. For me , this really a gem. It may become second penta and elsoft due to nature of business is same. Yesterday closing is a good example, investor are rush in to buy although the market is weak. Rebound from low 84.5sen and end high 90.5sen. It break the all high for mmsv. Forseen i would target the next quarter is range eps 2.5 to 3. It take the minimun eps 2.5 (annualized pe is 10) and mutipily the average pe between elosft and penta around 1.30 The first target price is rm1.30 (upside potential of 44.44%) This is not taking account listing in main board in 2H
wow Director Tan Hock Kin aka Trader Joe bought from 83+-86 2 days ago. Based on previous activities of him they might be expecting strong coming qtr reporting. anyway, mart is weak/sideways so might be testy today but mid longer term should be good :)
im pretty sure that MMS will promise good statement by next quarter report. My company is selling parts to MMS and they are increasing their order these 2 weeks due to big order received. My company revenue also increase 30% after contribution from MMS. Thats why the share price shooting before report comes out =))
MMS Ventures eyes Main Board transfer in 2H By Ben Shane Lim / The Edge Malaysia | March 29, 2017 : 5:00 PM MYT Printer-friendly versionSend by emailPDF version Translated by Google Translator: Select Language▼ This article first appeared in The Edge Malaysia Weekly, on March 20 - 26, 2017.
AMID the rally in semiconductor stocks, MMS Ventures Bhd (MMSV) has largely gone unnoticed due to its listing on the ACE Market. Many large funds simply do not have the mandate to take positions in ACE Market stocks.
Even with a 27% rally in its share price over the past two weeks to 75 sen per share last Thursday, MMSV is valued at only 12.6 times earnings. In contrast, larger semiconductor stocks like Globetronics Technology Bhd and Inari Amertron Bhd are valued at 52.8 times earnings and 21.65 times earnings respectively.
But MMSV may soon shed its ACE Market discount.
“We hit the net profit requirement back in 2015. We only need three years cumulative net profit of RM20 million to qualify for a promotion to the Main Board. It is something that we are planning. If all goes well, we might be on the Main Board by the third or fourth quarter,” says chairman and managing director Sia Teik Keat, adding that the final decision lies with the Securities Commission Malaysia.
With a cumulative net profit of RM33.08 million over the past four years, MMSV should not have a hard time securing SC’s approval.
Furthermore, Sia expects MMSV’s 1H2017 net profit performance to further build a case for promotion to the Main Board.
“Barring any unforeseen circumstances, we anticipate that earnings will be at least 20% higher in the first half,” he says.
MMSV booked a 13.7% year-on-year increase in revenue to RM35.6 million for the financial year ended Dec 31, 2016. Meanwhile, net profits rose by 17.8% y-o-y in the same period to RM9.52 million.
A 20% increase in net profits for FY2017 would translate into an earnings per share of 7.1 sen. In turn, that values the company at only 10.5 times forward earnings.
Sia is able to speak confidently about earnings prospects because the project-based nature of the group’s core operations offers earnings visibility.
MMSV produces testing and inspection equipment for LEDs, specifically, for smart devices, the automotive industry and general lighting as well. The inspection equipment has to be ordered by LED manufacturers ahead of a new product cycle.
New features are expected in this year’s line-up of smartphones — expecially Apple’s 10th anniversary iPhone 8 — that will act as a catalyst for semiconductor companies such as MMSV.
This year, Sia says orders from new customers as well as MMSV’s diversification into wafer inspection equipment will drive earnings growth.
“We managed to secure some new clients for our visual inspection equipment this year. On top of that, our wafer inspection is still on a low base. We have only received orders for the first few units; we expect this segment to grow,” he explains.
Sia says MMSV diversified last year into inspection machines for the LEDs semiconductor wafers — thin slices of crystalline semiconductor material.
“The degree of difficulty for wafer inspection is much higher. It is a high value machine that commands higher margins. It also has less competition.”
The group’s venture into wafer inspection is a direct result of research and development investment over the years, he adds. For now, MMSV has secured two customers for the wafer inspection machines, but expects the business to grow because the platform for the machines is relatively universal.
The main driver of MMSV’s earnings however, will continue to be the visual and inspection equipment for LEDs.
“One of our key products are visual inspection machines to inspect lenses for the flash in smart devices. Our clients include the top four LED makers in the world,” says Sia.
Currently, the smart devices segment makes up about 40% of profits. Automotive makes up about 25% while 10% comes from general lighting.
Going ahead, however, Sia anticipates more sales in MMSV’s smart devices segment that will increase its contribution to profits to 55%.
“Our automotive segment has a lower volume, but much higher margins. This is because automakers have longer product cycles and tight tolerances for quality. Smart devices have much higher volume, because phone makers are constantly launching new products. However, it is also more competitive, so margins are a little lower,” he notes.
Sia claims MMSV’s technology is on a par with its Taiwanese peers. However, MMSV boasts a cost advantage, with a substantial portion denominated in ringgit. Meanwhile, the bulk of MMSV’s earnings are in US dollars.
“We have been doing this for about 20 years and have a strong pool of technical expertise. Japan, for example, is ahead of us. But they are more expensive as well,” he says.
Between higher profits and the possibility of a Main Board listing, MMSV will certainly be an interesting stock to wat
Sharesa, thanks for the update. Unfortunately, this MD ISA is stingy with dividend. He doesn't intend to increase dividend distribution. Instead, he unilaterally wants to invest the earnings into unit trust, etc. He conveniently forgets the support of investors who help sustain the company's market capitalization and share strength.
Vis up 11.02% , Penta up 6.464%, Elsoft 4.865% only mmsv still lying inside the coffin prove tk Sia is totally 100% Moron in share dont even take of share holders some only talk cock every day one to transfer main board for a guy like transfer or not is no meaning
Why MMSV is good buy? 1)MMSV is still laggard behind close competitor Penta and Elsoft with high ROE 26.8%, profit margin 23.6% 2)MMS is involved in the design and manufacture of LED and Semiconductor Industrial Automation Systems and Machinery. Evolusys is involved in the software development. All stocks related to LED up more than 100% such JHM, D&O, Comcorp, IQ Group and Success 3)Group will benefit from exchange gain due to its export driven based advantage (1USD = 4.40MYR average from October 16 to February17) Remarks : Penta, Elsoft and MMSV start rise on mid July 2016 after USD rebound from the bottomline 4)Coming Q1 2017 will be booming due to reason as per below: a)MMSV MD TK.Sia said the company has secured about 9mil with worth of orders for test equipment for the first Quarter 2017 . This is not include revenue from ligthing sector (15%) + semicon (15%). Thats mean the coming quarter is confirmed higher than 9mil and this exceeded the revenue last two quarter which is 4.8mil and 6.8mil b)MD TK Sia hint that the earning for the coming 1st half is AT LEAST 20% higher than last year c)Based on my calculation, the coming quarter EPS is ranging from 2.3 to 2.6. Taking mid point EPS 2.4 will generate annualized EPS 9.6
TP based on PE15 (Average between Elsoft and Penta) 9.6 x 15 = RM 1.44
My projection TP as per below:
1st : RM 1.16 2nd : RM 1.44 3rd : RM 1.80 (After transfer to main board on 2 H 2017
Please bear in mind the main catalyst in MAIN BOARD.
hmm oversell i am guessing today? well this week in general......if theres buying power along with a good stock like this, i am sure it will go up like nobody business. Tp 1.20 :) bought at 0.87 10k shares lets hope theres shit load of profit for me.
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....
Ab8376
81 posts
Posted by Ab8376 > 2017-03-20 10:03 | Report Abuse
may try 89 cents