Introduction

NationGate Holdings Berhad (NATGATE KLSE 0270) is a Malaysia-based investment holding company. The Company, through its subsidiaries and associated companies, is principally involved in the provision of electronics manufacturing services (EMS). The Company focuses on the assembly and testing of electronic components and products to produce completed printed circuit boards (PCBs), semi-finished sub-assemblies, and fully assembled electronic products, and semiconductor devices. It offers its products to end user markets, such as networking and telecommunications, data computing, industrial instruments, consumer electronics, automotive and semiconductor, among others. Its subsidiaries include NationGate Solution (M) Sdn. Bhd., NationGate System Sdn. Bhd. and NationGate Integration (M) Sdn. Bhd.

Hence, NateGate is a company that involves in the AI super server manufacturing.

High Precision SMT

NationGate is equipped with the state of the art and the latest surface mount devices machines and equipment.

High Level Assembly

NationGate specialized in high volume assembly of all types of products, mainly fibre optic modules, electronic boards and final products it offers.

Semi-Conductor Process

NationGate has the process and capability to perform semi-con process by

NationGate System Sdn. Bhd.

(A wholly owned subsidiary of NationGate Solution (M) Sdn. Bhd.)

High Precision Low Pressure Moulding

Advanced Laboratory

NationGate has a high end laboratory centre with equipment such as : Xray machines, EDX, XRF, Nano Metallographic.

Fully Integrated Smart Production

State of the art and fully automated assembly and processing. This will ensure consistent quality and predictable run rate for our product.

Shop Floor Traceability and MES

MES (Manufacturing Execution System) has been installed plant wide in NationGate. This coverage from Incoming of materials until shipping department.

NationGate Solution

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NationGate is principally involved in the provision of Electronics Manufacturing Services (“EMS”) and has been in operations since 2010. Our customers comprise mainly of multinational companies from various industry market segments such as networking & communications, instrumentation, automotive, medical and consumer products.

NationGate Plant Locations

NationGate activities are conducted at 3 manufacturing plants located in the Prai Industrial Estate, Penang.

With a total built-up area of around 569,000 sq. ft., NationGate is committed in protecting the environment to create a clean, safe and healthy workplace for all its employees to work in. NationGate Group’s activities is currently supported by a workforce of over 1,300 employees.

Driving results through operational excellence

To be a good corporate citizen, we commit ourselves to contributing positively to the development to the community. Every year we organize various community program as part of our social responsibilities.

Quarterly Results

On 24 May 2024, NatGate was transferred from the ACE Market to the Main Board.

The net profit in the first quarter of fiscal year 2024 surged 58.09% year-on-year to 21 million. At the same time, the company announced a dividend of 0.25 cents per share.

The electronics manufacturing services (EMS) company said its strong first-quarter results were driven by increased demand, particularly from its networking and telecommunications, data computing and industrial instrumentation segments.

Looking to the future, the company remains optimistic and confident about future opportunities. It is particularly optimistic that the EMS industry will experience significant development and transformation in the future due to factors such as trade diversion, AI technology development, market digital transformation, and data centre construction.

NATGATE Quarter Report History

At the time of writing, there is no up to date coverage given by research houses for NatGate. After the 2nd quarter FY24 result is announced, there might be coverage and target prices given by research houses.

NationGate's Penang Factory to House XFusion Global Supply Centre

https://www.thestar.com.my/business/business-news/2023/09/01/nationgate039s-penang-factory-to-house-xfusion-global-supply-centre

KUALA LUMPUR: Nationgate Holdings Bhd's factory in Seberang Perai, Penang, will house xFusion international Pte Ltd's maiden global supply centre, as part of their partnership to manufacture graphics processing unit (GPU) servers for the global market.

In a statement, NationGate said XFusion, a leading global provider of computing power infrastructure and services, will set up the 254,491 sq ft facility as a key hub for its international market.

The facility will have an annual production capacity of over 150,000 units of equipment including GPU servers.

GPU servers are high-powered servers designed for data centres and are applicable to artificial intelligence, high performance computing, database and video analysis.

NationGate managing director, Ooi Eng Leong, said the company's appointment as XFusion's strategic partner is a testament to its growing capability and competency as an established EMS provider.

“The appointment will further support NationGate’s journey to improve our expertise along the value chain, in order to solidify our position as a renowned one-stop EMS provider,” he said.

Penang Chief Minister Chow Kon Yeow, who officiated the launch of the global supply centre, said he is confident the collaboration between XFusion and NationGate will strengthen Penang’s digital infrastructure and connectivity.

NVIDIA and NatGate are partners

https://www.nvidia.com/en-us/about-nvidia/partners/partner-locator/?countryCode=MY&page=1

The above link is the proof that NVIDEA has listed NationGates Holdings Berhad as one of its partners.

Growth Engines

Hence, there are three growth engines:

1. Nvidia AI OEM (Original Equipment Manufacturer) super server,

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2. Xfusion AI OEM (Original Equipment Manufacturer) super server,

3. NATGATE  AI super server under its own brand name.

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                                            RM52,244

NationGate acquisitions Set to Spearhead Growth

https://www.thestar.com.my/business/business-news/2023/09/01/nationgate039s-penang-factory-to-house-xfusion-global-supply-centre

PETALING JAYA: NationGate Holdings Bhd’s new customer acquisitions and business collaborations via joint ventures are expected to spearhead growth for the group.

UOB Kay Hian (UOBKH) Research said that these initiatives are set to drive growth beyond the company’s organic targets.

“Beyond the ramp-up from a low base in 2023, NationGate is also spearheading growth via new customer acquisitions and business collaborations, which could require new premises to house these trade diversion-related opportunities.

“We believe this could come from the consumer electronics segment, via active collaboration with GoldTek Technology, the semiconductor segment – assembly and testing services – computing power infrastructure and server space,” UOBKH Research said in a report yesterday.

“After the commencement of the new operations at Plant 7, the group is expanding Plant 5 by an additional 80,000 sq ft while adding its new Plant 8, which has an area of 248,000 sq ft, for a 53% floor space expansion.

“Several multinational corporations have expressed interest in taking up the facilities.”

UOBKH Research also said NationGate should benefit from its existing customers’ supply chain reconfiguration.

“The company also intends to ride on its new business collaboration with GoldTek to further expand its business and strengthen the relationship between both parties for future collaborations with more affiliates and/or subsidiaries of Hon Hai Precision Industry.

“NationGate commenced operations at Plant 7 for a few customers with an initial built-up area of 100,000 sq ft, with eight surface mounting technology lines, in February 2022, and expanded its manufacturing floor space within Plant 7 for a total rented built-up area of 227,700 sq ft.”

Moving from China to Penang

As customers' move to relocate their factories from China to Penang is about to be completed, NationGate Holdings (NATGATE, 0270, main board industrial stocks) believes that its network and communications fields will resume production capacity.

In addition, the data computing business will continue to be boosted by the rebound of new artificial intelligence and encryption-related products.

In addition, the company intends to expand the No. 6 and No. 9 factories, which are expected to be completed by the end of 2024, and the No. 8 delivery room has also been favored by customers and has been rented out.

Our Quality Policy

Our EMS activities which are segregated between printed circuit board assembly and final assembly. In addition, we provide value-added services which include provision of contract design, prototyping for manufacturability, supply chain management, testing and final packaging as part of our integrated capabilities.

·          Quality First

·          Do It Right At The First Time

·          Meet Customer’s Requirement

Conclusion

Analysts pointed out that since the technology sector has begun to enter a new upward cycle, it is necessary to recalculate the valuations of major companies and raise the rating from the original "neutral" to “overweight”.

begin in the second half of this year (2024), which is July 2024, as shown in the following weblink.

https://www.isaham.my/stock/natgate