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share4u2020

Author: share4u2020   |   Latest post: Tue, 24 Dec 2019, 12:00 AM

 

Istone - Ultimate Industry 4.0 company bull like greatech and uwc

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I-Stone comprises of committed an competent engineers, each with their own specialties. We turn vague ideas or concepts into real products ready to be deployed in manufacturing plant. Our team is consist of management team with technical background working together with engineers specializing in mechanical, electrical and electronics, software vision, robotics, motion control and test & measurement .

 

 

 ISTONE involves in manufacturing automation business primarily offering design, manufacture and modification services of specialised automation machines as well as provision of Data Management System (“DMS”). The core business is also complemented by machining fabrication and distribution of manufacturing automation software and hardware (robotic arms). The group has over 100 active clients from various industries such as consumer electronics, automotive, robotics and semiconductor, reinforcing ISTONE’s capabilities on the diverse industries of automation expertise. Among the top renowned clients are Dyson, V.S. Group and ATA Industrial having up to 12 years of solid business relationship, with Dyson being the major sales contributor (>65%).

 

As a strategy to enhance its competency, increasing productivity and efficiency, 10.7% or RM4.2m of the proceeds will be utilised for process and product development. The new products and features in the pipeline are namely deep learning system for vision inspection machine, i-FCT (automated joint-test system) and i-MES (advanced DMS). To improve manufacturing efficiency, ISTONE plans to produce standard modules which will set to reduce project lead time. Another 17.4% is allocated for the construction of new Design and Development (D&D) centre with anticipation of increasing D&D activities, expected to be completed in 48 months after listing. Meanwhile, 13.3% will be used for capital expenditure to upgrade manufacturing capabilities. Lastly, 34.5% and 15.1% of the fund is allocated for repayment of borrowings and working capital requirements respectively.

 

As at 23 May 2019, ISTONE has an unbilled purchase orders of RM25.79m, providing near term earnings visibility over the next 2 to 5 months. Gearing ratio is set to improve from 0.6x to near zero post listing. Given ISTONE’s expertise on customised automation machine from various industries, we expect earnings growth to be driven by higher adoption of manufacturing automation tapping on government’s initiative of Industry 4.0.

 

 

TECHNICAL ANALYSIS

 

 

 

 

 

 

 

 

 

 

 

 

 

UWC , Greatech and Istone are 2019 IPO automation stocks, as you can see, UWC and greatech already bullish for months, up more than 400% is totally insane. Now we notice that istone is just about to picking up the bullish momemtum, we have confident it will breakout about 27.5sens resistance by the end of 2019

 

HLinvest : Technology: We believe the broad technology sector will be benefiting under the E&E and automation incentives, which could result in higher demand for automation equipment moving forward; under this section we like ISTONE and KESM.

HLinvest: Under Budget 2020, tax incentives will be provided to promote high-value added activities in the E&E industry to transition into 5G digital economies and IR4.0. Hence we anticipate more companies to embrace for automation, potentially resulting in higher demand for automation-related services companies. Under this space, lookout for stocks related to automation such as PENTA, VITROX, ISTONE, GREATEC as we believe their services may be in interest moving forward.

 
WHY Istone

-Istone has the lowest PE compares to other automations stock, we believe stock price is now undervalued, will catch up Greatech, UWC, Kesm growth, soon or sooner

- Automation tech sector is the most anticipated future tech

-Benefits from Industry 4.0

-Benefits from budget 2020

 

After analysis of its  technical analysis

short term RM0.3

 

After analysis of its future prospects and future cooperate techs with dysons

Long term RM0.5

 

DISCLAIMER : Investment involve risk, including possible loss of principle and other losses. This article and charts are provided for information only and should not be construed as a solicitation to buy or sell any of the instruments mentioned herein. The author may have positions in soe of these instruments. The author shall not be responsible for any losses or lost profits resulting from investment decisions based on the use of the information contained herein. If investment and other professional advice are required, the services of a licensed professional person should be sought

 

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Labels: ISTONE

Related Stocks

Chart Stock Name Last Change Volume 
ISTONE 0.24 -0.005 (2.04%) 16,779,000 

  share4u2020 likes this.
 
VSLSB You fishing for people to offload your position? Very irresponsible
22/02/2020 2:51 PM


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