According to Star Newspaper, upcoming Budget 2018 places more emphasis on the need to provide tax incentives that focus on the development of the fourth industrial revolution (Industry 4.0). This could bring further improvement company engaged in technology sector. Again, Technology stock still remain the theme and continue to be bullish. No wonder a lot of Technology stocks rally especially Palette Multimedia!

M3Tech (M3) was an another top volume stocks on last Friday which draw a lot of interest especially like me to take study their fundamental. I found out that something that draw my interest to share here.

Background

M3Tech was successful to become a sole distributor for the “Papago” device and the share price soars from few cents to as high of 30 cents during year of 2016. However, later Waze replaced the technology. Thus, the profitability suffered in tandem with the share price as well.

Business Picked Up

I took some information and share it here again as I think most of the readers might forget it already. M3Tech announced that the company was awarded a contract worth of RM53.23Mil in country of Indonesia and should start reflect upon upcoming result in 1QFY2018.

Adopted from Bursa:

“M3 said the shipment was part of a two-year agreement signed between Mobiletren and Telkomsel in January, where M3 was to supply an estimated 285,000 units of T-Bike devices valued at RM53.23 million.”

The Company wishes to clarify that the supply of an estimated 285,000 units of T-Bike devices valued at RM53.23 million (“Supply”) includes charges for professional services, after sales service, maintenance support service, etc. The Supply will be carried out in stages over a 2-year period, commencing 12 January 2017 as set out in the said agreement.

Changes in Shareholding

The owners was acquired the shares of the company via open market recently. Why makes you think if an owner keeps buy back their company share? Good or bad?

One off items

The operating review of M3 is challenging, overall current year today M3 still making loss per share of 1.26 sen. However, strong recover on 4Q17, their EPS reduced to negative 0.81cents. The losses was due to provision of doubtful debts, bonus and write of inventory. If we knock out this one items, do the company making profits?

Mostly of the investor over focus on short-term profits and forget all this was belongs to one off items. No wonder, their share price keep increased since 25^th of August after Q4 result announcement. How could I miss this?

Summary

Above is my own analysis without any insider information and I encourage readers to do their own homework before investing. Any discussion is welcome.

And I take this opportunity to wish everyone a joyful, good tiding, healthy, prosperous!

Link Reference:

http://www.thestar.com.my/business/business-news/2017/07/20/budget-2018---govt-to-focus-on-tax-incentives-for-industry-4pt0