NATGATE: How High NATGATE Share Price Can Go?

ChloeTai

Publish date: Fri, 19 Jul 2024, 07:15 AM

NATGATE PROSPECT

Customers’ relocation out of China to Penang will help the orders from the customers to be normalise. This will boost NATGATE’s utilisation as various products will have transition to mass production. NATGATE has begun the mass production of AI servers which will be ramped up in 2HFY24. Meanwhile, it has begun shipping its AI servers (approved by Nvidia) to customers and the shipment is expected to pick up in 2HFY24.

NATGATE Quarter Report History

Quarter	Revenue (RM,000)	PBT (RM,000)	Net Profit (RM,000)	EPS (Cent)	Div (Cent)	QoQ (%)	YoY (%)
Q1 Mar 24	207,009	22,331	21,007	1.01	0.25	+32	+58
Q4 Dec 23	171,577	17,988	15,922	0.77	0.25	-8	-28
Q3 Sep 23	165,581	20,959	17,278	0.83	0.25	+21	-43
Q2 Jun 23	143,731	16,134	14,323	0.69	0.25	+8	-
Q1 Mar 23	157,407	15,458	13,288	0.64	0.25	-40	-
Q4 Dec 22	214,576	31,741	22,193	1.35	0	-20	-
Q3 Sep 22	305,570	32,399	30,053	1.83	0	-	-

The percentage of increase of EPS from Q4 FY2023 to Q1 FY2024

= [(1.01 – 0.77) / 1.01] X 100

= 23.76%

Let's us do some calculation with assumption of 32% QoQ (following the Q1 ’24 results):

(Mar '24) = EPS 1.01 sen as reported.

Then, the next Q2 FY24 (Jun '24) = EPS 1.33 sen (+32% QoQ)

Since the mass production of AI servers and the shipping of AI servers will ramped up

in 2HFY24, we double the percentage of increase QoQ to 64%.

Then if next Q3' FY24 (Sep' 24) = EPS 2.18 sen (+64% QoQ)

Then if next Q4' FY24 (Dec '24) = EPS 3.58 sen (+64% QoQ)

Summing up all these 4 quarters, the total EPS is 8.10 sen by end of Dec '24.

Let say, if PE 40 is used, then the share price is

(8.10 X 40) / 100

= RM3.24

Technical rebound expected (19 July 2024)

10% retracement from the peak is defined as “correction zone”.

[(2.52 – 2.24) / 2.52] X 100 = 11.11%
This means NATGATE has entered the “correction zone”.
A technical rebound is expected.

NATEGATE'S AI SERVER

HPE ProLiant ML350 G10 4U Tower Server - 1 x Intel...

The price of an AI server is RM52,244.

If the profit is 20%, then the profit from the sales of one AI server

= RM10,448.80

If 1,000 AI server is shipped, then the total profit

= RM10,448,800

SPECIFICATION

nh8230 8u ai server (nvidia hgx h100)

S2232

NS2232 is a general-purpose 2U2S product for the enterprise market based on Intel's latest Eaglestream platform, which provides a cost-effective product option to meet the needs of the mainstream market through modular combinations and cost-optimized design.

KEY FEATURES

· Up to 16 x 3.5 inch HDDs

· Up to 28 x 2.5 inch Drives or E3.S SSDs

· Up to 10 x standard PCIe slots and 1 x ocp3.0 slots

· Up to 4 x DW GPU cards or 8 x SW GPU cards

· 225W CPU and 16 DIMM DDR5 memory meet the mainstream application require

· Expand the memory capacity with CXL technology

· Optimized cooling design

TECHNICAL SPECIFICATIONS

Form Factor	2U Rack
Processor	1 or 2 x 4th Gen Intel ® Xeon ® scalable processors, TDP 225W
Memory	Up to 16 DDR5 DIMMs
Storage	Front: up to 12 x 3.5-inch HDDs or 24 x 2.5-inch SSDs Rear: up to 4 x 3.5-inch HDDs or 4 x 2.5-inch SSDs Internal: up to 2 x M.2 SSDs
Expansion Slots	Up to 10 x standard PCIe slots and 1 xOCP3.0 slot Up to 4 x DW GPU cards or 8 x SW GPU cards
Management	AST2600 1 x RJ45 MGMT port
Base IO	Front 2 x USB3.0 Type-A Receptacles 1 x PWR BTN with 1 x PWR Indicator 1 x VGA 1 x UID button & LED Rear 1 x UID LED 1 x VGA 2 x GbEs 1 x UART(rj45) 1 x GbE MGMT Port
Cooling	4 x 8056 FANs, N+1 Redundant Cold plate optional
Power Supply	2 x CRPS PSUs ,1+1 Redundant
Dimension	86mm(H) x 447mm(W) x 840mm(L)
Operation Temperature	5ºC - 35ºC

NATGATE (0270)

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