from what I know , unisem is more to chip and waffle business . vitrox is more to inspection and automation equipment and module , they do have PCB related business too . but this QR vitrox is hit by lower demand on inspection and automation business . hope fpgroup business remains good .
CEO expect growth of double digits in FY 2020 Orderbook for first half of FY 2020 has exceeded 25M , up from first half of 21M 2019 FY .
their key type of materials are stainless steel , aluminium and engineered plastics . the first 2 mentioned materials is facing weak pricing. Price of commodities from jan 2019 to oct 2019 1. Steel : 3800 USD to 3400 USD 2. Aluminium : 1800 USD to 1700USD In FY 2018 , the profit margin was 21% whereas during the weak price of steel and aluminium , the profit margin was 26%
Hence there close relation with the profit margin of the company and the price of steel and aluminium. Coming QR the profit margin is likely to be close to around 27.5-30% Next 2 QR is likely to get about 3.1-3.8M of profit . with EPS of 2.6-2.8 sen per Q , with the current PE of 21 , the intrinsic value of this stock is 56 sen . at PE of 30 , this stock will worth around 70-80sen
Historical high PE 2017 June : annual profit 10M , eps 1.8 , price average 60 sen , PE 30
Few points to anchor for long term investors: 1. ESOS - company practises ESOS & as the share price involve the own employees personal interest, wouldnt they protect it at all costs? This should be advantageous to us
2. Q3 results - expects to continue its growth momentum despite recent industry weaker sentiment. So should keep up and fly once QR is announced by month end soon
3. Their margin profitability is improved by exchange rate due to marketed regionally to the us and other EUR/Asian markets, which with weaker pricing of steel/aluminium (cogs of their products) reduces down their cost, atleast for the time being.
4. Trade volume increase in recent month, means that some insiders or public are expecting a good quarter soon and built up interest in the counter.
5. 30% dividend policy - the bod ensures shareholders' interest by upholding 30% dividend payment annually based on yoy profitability
6. 5G - sought to be a beneficiary as the world trends towards digitisation plans. There's so much opportunities in the pipeline and we're talking about 2020/21 to see its full implementation swinging at its highest potential
7. Despite in same E&E industry, most other companies have different sets of non-competing products and customer database at a whole. Eg. The link of vitrox/MPI to FP is only vaguely related.
8. Personal view: FP held back its support line pretty well on last Friday turmoil vs the rest of tech counters. Particularly Dsonic and FPG.
In short, mid-long term FP investors should strive provided the company keeps up to its current strong momentum.
As for short term traders, quoting from other forumer above: "with EPS of 2.6-2.8 sen per Q , with the current PE of 21 , the intrinsic value of this stock is 56 sen . at PE of 30 , this stock will worth around 70-80sen" "Historical high PE 2017 June : annual profit 10M , eps 1.8 , price average 60 sen , PE 30"
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Today, FPGroup closed with a Marubozu candle which is considered Bullish - high probability of a breakout from current short-term sideways trend and continue its uptrend journey...
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Investar2862
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Posted by Investar2862 > 2019-10-24 13:32 | Report Abuse
Good stock for medium to long term investors.
For short-term traders, 0.53 not too far away