BNM just released that 75% foreign currency of firm's profits should be converted to Ringgit to increase liquidity. Expect a boom. Hopefully fundamendal stock get a boost back to where it should be
Trump's latest tweet has attacked Boeing's plan to replace Air Force One with a new 747; specifically the "$4bn" he says it will cost.This tweet has caused Boeing's shares to slide, and reportedly wiped more than $1bn off the company's stock marketvalue.His statement on the cost of replacing Air Force one also seems to be inaccurate. The Air Force has earmarked $1.65bnfor two Presidential planes, each a four-engine Boeing 747-8.
A good company going through transition. The airline slowdown is just temporary due to uncertainty. Ultimately share price is cheap now and production will double once plant is ready. Keep and collect
Saw in the recent news that Iran has just signed a $16.6 billion deal with Boeing for 80 new aircraft. Wow. Agree with Victor Tan this is a good counter.
One thing that the analysis has miss out is that SAM is expanding on different product range, hence it doesn't need additional boost in aircraft sales to boost SAM sales. Eg. Previously if they make part A for 10 planes, soon they will be making part A, B and C for 10 planes. Hence sales will up even if the number of planes doesn't increase.
Based on current order book and expansion, plus future positive prospect of travel industry... SAM is just in transition to higher capacity. Once the dust is cleared, blue skies ahead. Collect and hold while price is cheap.
SAM has honest and capable directors. A very strong business franchise in manufacturing aircraft components. The manufacturing process has to be very precise and of the highest standards. It takes years to be an accredited supplier.
Another 4 booming years is enough for me. Trading at 15x is reasonable. Will it continue at 15x, i think so but the bonanza from the new aerospace projects will create indigestion to many
I agree with Icon, niche markets are less susceptible to risk such as TPPA. Furthermore this is not trade, this is manufacturing subcontracting. I'm not sure about 20, but 10 is still very conservative judging that they will double in production.
I would like to express some of my view about SAM.
- Aerospace is never a concern for SAM. It runs at a near full capacity as shown in the latest QR or previous few QR. The Aerospace segment contributes approximate 55% of the revenue.
- The latest factory will be opened and commence their operation by February 2017. With their orderbook of 3.5billion ringgit which gives approximate 3.5 years burn rate (post-expansion) , and strategic partner with Aviation GE, Pratt and Whitney, I see no problem in Aviation /Aerospace segment.
- The problem , short term will arise at the Semi-Con part... it slows down too much. With recent exposure of news, they have NO intention to inject capex into the semi-con segment as there are NO or LITTLE demand.... If the semi-con segment can't pick up, SAM at most will probably rely on the Aerospace segment for revenue , which you will see flattish or reduction in revenue and profit... The difference ? The ratio of Aerospace segment contribution will sky rocket, while contribution from Semi-con shrink.
- Neverless, I am optimistic on their aerospace segment, but kinda flattish or disappointed with their Semi-con segment.
- Guidance was given for RM 1 billion revenue, 80% from Aerospace, 20% from semi-con @ 2020.
EPS won't be better for the next 6 months due to impact of taxation. SAM'PBT is subjected to normal tax rate of 24% started from the last 2 quarters. Bear in mind, QR30Mar16 & QR30Jun16 PAT were higher mainly due to tax incentives.
Remarks: AR 2016 - Taxation
* Certain subsidiaries were granted 100% tax exemption ranging from five to ten years under the Promotion of Investment Act, 1986 (as amended) and Section 127 (3)(b) of the Income Tax Act, 1967. The tax exemption periods for these subsidiaries expired on 31 December 2014 and 31 December 2015 respectively.
# The Malaysian Budget 2014 announced the reduction of corporate tax to 24% with effect from year of assessment 2016. Consequently, the deferred tax assets and liabilities which are expected to reverse in 2016 and beyond are measured using the tax rate of 24%.
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....
voon1900
714 posts
Posted by voon1900 > 2016-12-03 18:39 | Report Abuse
sorrylo dompeilee...u r better than fund manager