7100 (UCHITEC ° ^) DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) 20-01-2020 07:00:29
DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) Uchi Technologies Berhad ("UTB") wishes to inform that the Principal Officer has given notice of his dealing in the ordinary shares of UTB pursuant to Paragraph 14.09 (a) of the MMLR of Bursa Malaysia Securities Berhad.
Uchi down to 2.62. May I know what above notice means ? thanks
...“As a result, the group expects to have a low double-digit revenue decline (in US dollars) for FY20, in comparison to that of FY19, as our customers have lowered their demands,”
In view of the above recent announcement that the revenue is expected to drop would expect the price to drop. Luckily did not buy in this current rebound. Understand that the company product is mainly sold in Europe and Europe's economy will be badly hit. Wait and will be able to buy at a much attractive price in the future.
There is a reason why it hasn't rebounded as much as other counters and might even fall further. Its core business is export (to Europe) and it has been relying mainly on a single European customer (European coffee machine manufacturer). Just look at how badly in shape Europe is right now. You can argue that people drink coffee everyday but you will agree that it is not essential for survival, not to mention high-end coffee machines like what Uchitec's customers sell. In times like these, demand will surely suffer and in fact, its management has even announced that its revenue is expected to fall for this year. As far as i am aware, there hasn't been enough transparency on its contract with its customers, save that its management, if I remember, was quoted to have said that it has secured its contract already but the recent announcement indicated otherwise - that its revenue will fall on lower demand (hasn't it been secured). There seems to be inconsistency here. If anyone can enlighten me, appreciate. Regardless, Uchitec's business is too concentrated to navigate around bad economy. The company had been too comfortable with doing the same thing over the years and appears to be unprepared for this crisis. Just can't help to think as to why a consistently profit making tech company is unable to cut - now it seems that the above could be one of the many reasons.
UCHITEC already come out with profit warning that Europe customer is badly affected by Covid-19 as UCHITEC is dependent on a single largest customer Jura only
Management seems confident that company will remain profitable for rest of 2020 (notes to the accounts). They would have adjusted their budget accordingly in view of covid19 effect and as long as their order book for this year remain realistic, they are confident of making such a remark, pandemic or not. Management is forward looking. I wouldnt worry too much as all the bad news are already out for this year.
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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....
x3mg33
133 posts
Posted by x3mg33 > 2019-12-13 11:15 | Report Abuse
maxed out on the potential and PE