Hi all, I’m invested and have been closely following both Enovix and YBS, and just wanted to share my understanding of the partnership and potential from YBS’ perspective.
Enovix increased forecasts to $150M revenue per line, at 50% gross margin (Q1 2024 ER last night).
This means YBS should see $75M revenue per line.
Based on the QnA portion of the YBS 2023 AGM, they expect 5% margins from this project, so that’s $3.75M or ~RM16M profit per line, and I believe Enovix mentioned they have space in the current site for up to 6 lines, so potentially RM2B revenue and RM100M profit for YBS when fully operational.
I was invested in Enovix before YBS, and always felt that there is a huge demand for their tech. It feels like most Malaysian investors are unaware of their differentiation and maybe just see them as another “boring” battery company. For me, the risks at Enovix were always manufacturability at scale, and economics/margins. Last night’s earnings call largely de-risked these factors, which also benefits YBS, so it’s now just a matter of waiting for the ramp.
Stock: [YBS]: YBS INTERNATIONAL BERHAD
3 weeks ago | Report Abuse
Hi all, I’m invested and have been closely following both Enovix and YBS, and just wanted to share my understanding of the partnership and potential from YBS’ perspective.
Enovix increased forecasts to $150M revenue per line, at 50% gross margin (Q1 2024 ER last night).
This means YBS should see $75M revenue per line.
Based on the QnA portion of the YBS 2023 AGM, they expect 5% margins from this project, so that’s $3.75M or ~RM16M profit per line, and I believe Enovix mentioned they have space in the current site for up to 6 lines, so potentially RM2B revenue and RM100M profit for YBS when fully operational.
I was invested in Enovix before YBS, and always felt that there is a huge demand for their tech. It feels like most Malaysian investors are unaware of their differentiation and maybe just see them as another “boring” battery company. For me, the risks at Enovix were always manufacturability at scale, and economics/margins. Last night’s earnings call largely de-risked these factors, which also benefits YBS, so it’s now just a matter of waiting for the ramp.