Salutica , new Bluetooth chipset promised to rectify the connectivity issue, this will be a boost towards generating more orders
Just two weeks into the launch, the new earbuds have earned a reputable rating of 4 to 4.5 stars on top technology reviewers TechRadar, WIRED, Android Central and CNET.
“Feedback indicated that the new earbuds surpassed market-leading brands from the US and Denmark in its size (compact), battery life (longer) and audio quality (better).
“We foresee Customer A making up lost ground with the new earbuds that allow L/R simultaneous connection to the audio source for a more stable connection.”
Meanwhile, US and Denmark rivals are still using conventional master/slave connection that relies on cross-head Bluetooth transmission, which is prone to connection drops.
“Moreover, Customer A’s earbuds run on Bluetooth 5.0, while its rivals are still on Bluetooth 4.0, ” it said.
AmInvest Research pointed out that seeing little hope for the US-China dispute easing, Customer A has begun to move production of certain computer mouse models from Suzhou, China to Salutica.
These are everyday use wireless mouse and are mostly sold to the US.
There are a total of four models being passed on to Salutica.
The first model has commenced production in July 2019 while the remaining three are slated to begin production in second quarter FY20. The volume for mouse production is seven times larger than that for headset.
“We envisage the non-seasonality of everyday mouse to cushion the off-season dips of headset production, particularly in Q3 and Q4. This will help to the company avoid negative surprises.
“We forecast sales from mouse production to contribute 46% of the group’s revenue in FY20F while headset contributes 48%.
“However, contribution from the new earbuds and mouse production will be captured in FY20. Currently, Salutica is trading at a discounted one-year forward PE of 11times, representing a 27% upside to our fair value, ” AmInvest Research said.
That's why Salutica shares keep on going a new high.
Customer of Salutica earbuds run on Bluetooth 5.0, a new tested reliable tech from Salute. US-China dispute easing, Customer A has begun to move the production of certain computer mouse models from Suzhou, China to Salutica. These are everyday use wireless mouse and are mostly sold to the US. This means higher revenue for Salute as customer A china business has been transfered to Salute factory in Perak. That's why Salute each day got high volume of buyers.
Small investors, sell, and these are being bought of big investors.. That's why Salute keep on up its price. Cheers all Salutitians.
Salutica is a rare small form electronics vertical integrated manufacturers. Not sure how to evaluate such company in Malaysia market since no other similar listed malaysia competitor. There are other odm and oem manufacturers which is more focus on manufacturing.
Nepo - The directors sold in Aug 2019 to a big time local investor, who buy into Salute This local investor is very well known to buy into good strong growth company while it is still cheap Once 2019 annual report out, we shall all see who is the new investor who the directors sell too Bear in mind, the directors father and son sell to this big local investor Something ,must be brewing
Salute engine warm and starting again today... Next new high will be soon for Salute Congrats to all those Salutitian who collected last week during the price correction Salute you all, cheer Salute near TP1 coming soon, once cross this next TP1.3
Steven, salute is vertically integrated manufacturer, primarily focused on Bluetooth wireless devices with capabilities and expertise to carry out a full product development lifecycle, from product design, product development, product testing/ prototyping, product commissioning to manufacturing and assembly as well as sales and marketing. If you think bluetooth earphone has potential, then Salute should, logically, has potential too.
What makes it more interesting is that, Salute has 96 mil net cash, it pays out RM 2.4 mil (DPS = 0.6 cents) per quarter. Conclusion: I thinks it's capable to pay consistent dividend. Potentially higher DPS after its business pick up. So, need patient to keep this equity.
I see, Cold Eye and Tan Teng Boo (Icapital Bhd founder), two big sifus also invest in Salute. Icapital Bhd average cost is around RM 1.30, cold Eye may be far far lower, may be RM 0.60.. Look like Salute is suitable for long-term
Vitrox and Unisem quarterly result go into the drain, but these are tech stock. If Salute is also tech stock, then need to beware...but different stocks have different fundamentals..
Respecting Cold Eye,Knowing that he has bought in a big chunk of Salute (10,360 lots), Maybulk (10,000 lots), Armada ( 30,000 lots) and Jtiasa (around 10,000 lots)
The company 2016 IPO year profit is the highest then earning drop yearly till now, last report mentions new headset launch and possible new products production. the next 2 quarters reports are crucial EU and USA holiday orders production report card. Any sign of profit recovery will be reflected. Mr Fong is good at identifying recoveries and profit growth companies, his substantial stake increase within 1 year could or could not be action anticipating the company profit recovery. Salutica has growth potential simply because the company spend resources on R&D.
Comparison to Vitrox and Unisem is false due to the facts that the business model and industries are difference. Unisem business is low technological value added services for testing and assembly while Vitrox is inspection equipments supplier. Unisem business well being reference to semiconductor industries. Vitrox dependence on investment of company and production line growth, with current political uncertainty, trade war threat, most business do not invest. Salutica is one stop consumers electronics technology company. Recent new product launch and new products manufacturing contract could be possible profit growth.
•We maintain our BUY recommendation on Salutica with a higher fair value of RM1.06/share (previously RM0.61/share) pegged to a rolled-forward FY21F PE of 14x. We have increased our FY20F–FY22F earnings forecasts by 20-28% to account for higher order forecasts from Customer A after visiting the group’s Ipoh plant recently.
This aminvest analysis a bit short sighted. Aug 2019 rating is 0.61 fair, within less than 3 months then rating is 1.06. Is this analysis report toward trading or investment? Seldom investment call upgrade so drastically of approximate 80% from last call within 3 months. What would this analysis write after the next company qtr report?
Nepo : " Respecting Cold Eye,Knowing that he has bought in a big chunk of Salute (10,360 lots), Maybulk (10,000 lots), Armada ( 30,000 lots) and Jtiasa (around 10,000 lots) 26/10/2019 9:10 AM "
Nepo : where you find the information that Cold Eye has bought Salute, Maybulk , Armada, and Jtiasa , and also the lots that he bought.
Salute is dropping now, investors waiting to see Salute coming to be release Qtr result - Target date Nov 26
Salute in the long term is good growth stock. The new projects and the customer A : this will be potentially capture in next next Qtr result, and most probably will not be captured in Nov 26 to be result.
What will be Salute financial results in Nov 26 ? Your guess is as good as my guess, that's why you are seeing Salute price dropping. People are worry, and choose to wait and see, as obviously Nov to be release result will not be include the new projects and new customer A order ( as it takes time to manufacture too), but the Feb 2020 to be released Financial should be good
If Salute price drop more, then this represent a good opportunity to buy, at this price Salute might be consider expensive. Let's wait and see !
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....
k6ii
1,873 posts
Posted by k6ii > 2019-10-18 10:39 | Report Abuse
MingGoon: Congratulation....