After mco lifted... Many factories return to green profit. But this salute still can big red. Somemore... ..with staff got covid.... Production further impacted.
KUALA LUMPUR (Nov 23): Ipoh-based electronics manufacturer Salutica Bhd said a number of its production workers have tested positive for Covid-19.
Salutica is best known as a vertically integrated manufacturer of wireless Bluetooth headset products for an American-Swiss peripheral device giant.
In a filing with Bursa Malaysia today, the group said it has immediately closed the affected production areas for deep cleaning and sanitisation, and the affected production workers have been quarantined.
The group did not disclose the number of workers that tested positive for Covid-19.
Salutica said disinfection exercises, the wearing of face masks and social distancing will continue to be strictly put in place, adding that employees will be allowed to work from home for two weeks as a precautionary safety measure.
"We will continue to work closely with relevant authorities and follow the standard operating procedures from the Ministry of Health and the National Security Council to ensure the safety of our employees," it said.
The ministry today announced that Malaysia's Covid-19 cases hit a new high of 1,884 in the 24 hours as of noon, with Selangor accounting for 1,203 cases.
Salutica's shares slid 2.5 sen or 5.49% to 43 sen today, valuing the group at RM166.84 million. Year-to-date, the counter has come down by 46% from 93 sen.
Fundamental of SALUTE has changed from bad to worse, operating cash flow has been negative last few years and directors sold million of shares during 2018 - 2019 and never buy back. Not a good sign.
Very bad company. ====================================================================== Review of performance
(i) Revenue
The Group’s revenue for the current quarter jumped 73.7% to approximately RM56.1 million compared to approximately RM32.3 million for the corresponding quarter in 2019. Computer peripherals contributed 67.0% to the revenue while Bluetooth headsets contributed 27% with the balance 6.0% contributed by in-house brand FOBO and other non-Bluetooth products such as plastic parts for light guides, fingerprint readers and camera sub-parts.
(ii) Profit/(Loss) Before Taxation (“PBT”/ “ (LBT)”)
The Group posted LBT of approximately RM4.9 million for the current quarter under review compared to LBT of approximately RM3.2 million in the corresponding quarter last year, an increase in loss of RM1.7 million. The loss was mainly attributed to change in sales mix with higher revenue from lower margin products. For the current quarter, the Group had incurred approximately RM0.9 million on products that are in various stages of product development compared to approximately RM0.2 million for the corresponding quarter last year. Meanwhile, a total of RM0.1 million was spent to comply with standard operating procedures (“SOP”) guidelines from Ministry of Health (“MOH”) and National Security Council (“NSC”) to contain the Covid-19 outbreak. Th
Prospects
The current Covid-19 situation has created an unprecedented challenge for businesses globally. The Group will continue to monitor closely the situation and mitigate its impact to business operations. Operational efficiency and effectiveness are key areas which the Group emphasises to improve its financial performance.
At the same time, the Group will strive to strengthen its core competencies in its product development roadmap while taking proactive steps to plan with appropriate financial mitigation to improve the Group’s financial resilience. However, the Board expects that the overall prospect for the Group to be challenging arising from the Covid-19 pandemic affecting the global economy.
A leak from some posting in facebook revealed 4 covid cases (photo of their company circulated memo) was matched with the cases reported in mysejahtera yesterday (just key in the company name will check no. of cases within 1 km radius from the check point). Today, mysejahtera was updated to 19 cases !!
LKSGSH, something interesting happened base on latest news from our Senior Minister Datuk Seri Ismail Sabri : KUALA LUMPUR: Zone A of Taman Klebang Jaya and Taman Pinji Mewah in Ipoh, Perak, have been placed under Enhanced Movement Control Order (EMCO) from Dec 1 to Dec 14. This was after both locations showed a sharp increase in Covid-19 numbers among workers in the Kamiya and Salutica factories located in the two areas. Senior Minister (Security Cluster) Datuk Seri Ismail Sabri said the EMCO was imposed as the factory workers live in the residential area. He also said that 737 workers were screened at Salutica which unearthed 119 positive Covid-19 cases, while another 618 were waiting for their results. Of the number 89 of them were from Taman Pinji Mewah. https://www.nst.com.my/news/nation/2020/11/645594/emco-imposed-taman-klebang-jaya-taman-pinji-mewah
The only positive about this co is the mgt tries very hard to make money. This can be verified from the increase in turnover to manufacture low profit product (mouse production) to mitigate the loss in the revenue from the sales of tws Bluetooth. In my opinion, the success of this co depends on its innovation in its tws Bluetooth technology. You may have an extreme case..either you may loss your underwear or earn handsome return..
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....
flyingtomoon2020
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Posted by flyingtomoon2020 > 2020-11-12 22:49 | Report Abuse
Salute gogogo