GEORGE TOWN: FoundPac Group Bhd is on target to ship out test sockets, stiffeners and laser stencils with an approximate market value of RM50mil to semiconductor test equipment customers in the United States, Europe and China for the financial year ending June 30,2020.
Group chief executive officer CH Ong told StarBiz that despite the Covid-19 outbreak, the orders from customers have not contracted. “The shipment for 2019 was around RM45mil.The market value of the product has increased because these are higher value orders which generate better margins, ” he said.
Ong added that the group had already shipped out about RM27mil worth of orders for the first half of the 2020 fiscal year.
“Based on enquiries and the purchase orders received so far, we are confident of shipping another RM23mil worth of orders before June, ” he said.
dow jones goonna plunge back to 19000 and heading to 15000. the covid impact on economy is hurting the market ... and dow jones finally react on it ...
ask yourself, does dow jones deserve 29000 due to covid ?
Still commendable results though QoQ is lower, which is acceptable given the weak economy. But the company fundamentals is still strong with its operations churning out cash of 19.5 mil.
QR result is 5050, neither good nor bad imo. Company still growing (RM 50m achievable - means 10% yoy growth on revenue) despite at slower rate, 9m profit is more than last year entire profit, still highly profitable company (27-30% margin), and company balance sheet still rock solid. (healthy cash and debt level).
Prob wont reach RM 1 with these numbers but any big sell off, there will be people picking it up.
Wall Street staged a comeback on Thursday as a surge in shares. The S&P 500 closed 1.2 per cent HIGHER, while the tech-heavy Nasdaq Composite climbed 0.9 per cent.
Asian stocks looked set for gains as investors awaited data that may show China’s post-lockdown economic recovery is picking up steam. U.S. shares closed higher and Treasuries climbed. Futures rose in Japan, Hong Kong and Australia.
Group chief executive officer CH Ong told StarBiz that despite the Covid-19 outbreak, the orders from customers have not contracted. “The shipment for 2019 was around RM45mil.The market value of the product has increased because these are higher value orders which generate better margins, ” he said.

GEORGE TOWN: FoundPac Group Bhd is on target to ship out test sockets, stiffeners and laser stencils with an approximate market value of RM50mil to semiconductor test equipment customers in the United States, Europe and China for the financial year ending June 30,2020.
Group chief executive officer CH Ong told StarBiz that despite the Covid-19 outbreak, the orders from customers have not contracted. “The shipment for 2019 was around RM45mil.The market value of the product has increased because these are higher value orders which generate better margins, ” he said.
Ong added that the group had already shipped out about RM27mil worth of orders for the first half of the 2020 fiscal year.
“Based on enquiries and the purchase orders received so far, we are confident of shipping another RM23mil worth of orders before June, ” he said.
Once the movement control order (MCO) is lifted, Ong said there would be a need to establish an alternative supply chain as the group could not rely on just the local supply chain alone to deliver.
“We are now using only those subcontractors familiar to us.
“The problem is that with the MCO some of them will have problems with delivery.
“We have to find overseas subcontractors, ” he said, adding that the group would continue working hand in hand with customers in design and development activities. If there is any need for new investments, the group will invest accordingly to fulfill the commitments of new projects, ” said Ong.
On the group’s recent investment into a production line to manufacture critical automotive parts, Ong said it wanted to start manufacturing in the second half of 2020.
“Because of the virus outbreak, we still have not been able to obtain the IATF certification.
“So we now have to wait till 2021 to start production.
“We will be pursuing the IATF certification after the MCO is removed, ” he said.
Ong said the global demand for automobiles would flatten because of the virus outbreak.
“This is why we need to focus on producing precision parts for a niche market in the automotive sector.
“Another area we are considering is the safety feature of autonomous vehicles, as there will be a rising demand for the precision parts that go into the safety feature of autonomous cars.
“FoundPac has vast experience in manufacturing precision machining parts, ” he added.
According to Ong, the group is financially well-positioned to venture into new business projects, as the group had a net cash position of RM45mil as of Dec 31,2019.
A recent IHS Markit report released in March forecast that the global auto industry is expected to witness an unprecedented and almost instant stalling of demand in 2020, with global auto sales forecast to plummet more than 12% from 2019 to 78.8 million units, according to the latest IHS Markit forecasts.
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....
Slumberjer
161 posts
Posted by Slumberjer > 2020-05-01 17:02 | Report Abuse
Niceee cant wait for Monday