TECHNOLOGY HIDDEN GEM: GENETEC – PART 2

Im really glad that Market perform very well for the past few days and it seems like Jim Rogers prediction is on the right track. Oil & Gas Stock (Deleum) had started to move, just wondering which sector will follow next. Now back to this topic, message is flowing in as i'm writing this, most of us have a different thought and some even command that YOU should answer to me or YOU shouldn't or YOU should invest in another stock. All i can say is that I'm just sharing my sincere piece of advise/opinion and I'm not owing anyone of you. Moreover, i didn't command you to buy, right?? Sharing is Caring, which is what the society needs. Some people keep good things to themself but some other share, and When I'm sharing, It's not that I want to offload the Stock! The Stock not even move yet!!

Furthermore, another member questioned about debt level, for me, it depends on which industry and the commitment for growth. Everyone is in debt in this life, but the most important thing that we have to ask is there enough growth or margin to cover and make profit. I believe the expertise of GENETEC can handle it very well.

So now back to the business, WHY invest in GENETEC?

i. Genetec is not a HDD producer, Genetec Technology Berhad (Genetec), an ISO - 9001:2008 Certified Company is a leading contract manufacturer of automated industrial equipment, systems and production tools. We provide high-quality, responsive and cost-effective Design, Manufacturing automated industrial systems, equipments and Value-Added services to our global customers in the Hard Disk Drive, Electronics, Automotive, Hazardous Material Containment, Pharmaceutical and Semiconductor, Food and Consumers industries.

With rising labour cost, Western Digital, Seagate, JCY and many others HDD related producer will increase their CAPEX to invest in the Automated Industrial System. From JCY Financial report, It will spend rm200 million to rm300 million on automating its plans over the next five years. Seagate in Batu Kawan could benefit JCY. It was reported that Seagate will invest RM1.05bn to build a new HDD plant at the Batu Kawan Industrial Park in Penang. Furthermore, Western Digital is commited to Capex totaled $156 million of 5% of revenue, which is RM 700 million

GENETEC stand to benefit from this CAPEX spending!

ii. Revenue increased by more than 25%

BUSINESS OUTLOOK

Genetec Group started the new financial year with a strong secured order book of RM76.1 million.

This represents about 52.2% of last financial year’s revenue of RM145.9 million. we expect

continuing strong demand for our automation products and expertise from the Automotive industry.

According to Fitch Ratings’ Report on 2015 Outlook for Global Automotive Manufacturers, the

global demand for new vehicles should increase modestly in 2015, despite challenging conditions

in some markets. It is also projected further sales growth of about 6% in China.

Please watch the intro on Theedge TV. In today's Stocks with Momentum, brought to you by The Edge Research, Khoo Hsu Chuang and Wei Lynn Tang talk about Oriental Interest Bhd and Genetec Technology Bhd. Both are pegged as 'negative momentum' though for slightly different reasons. Oriental Interest is seeing some fatigue in its surging share price, which is trading at a 52w high, thanks to its pivot into higher-yielding property development and a bonus issue. Meanwhile Genetec is facing some selling pressure after reporting a stellar set of Q1 FY16 numbers and healthy June orders of RM27.3m, primarily in the electronics industry.

https://youtu.be/gaXDcZ3Cy5o

iii) 1/10/2015, Western Digital’s announced that the Chinese government-backed Tsinghua Unigroup’s asset management arm, Unisplendour Corporation Limited (Unis), will buy its newly issued shares at the rate of $92.50 or a total of $3.775 billion. This represents an approximately 34.4% premium over Western Digital’s closing price on Tuesday. We believe that the deal has come at the right time as the world’s leading hard-disk drive (HDD) manufacturer is trying to lower its dependency on PC storage and focus on rapidly growing flash and cloud storage businesses to improve its top-line performance.

Chinese Gvernment is investing in HDD?? Why some people still think that HDD is dead. Do you think Chinese Government is STUPID?? or it could be YOU that is not thinking straight?

iii) GENETEC rolling PE Ratio is still very low, which less than 7 and looking at industry peer, which command more than 15. Furthermore, GENETEC stock is liquid and you won't get trap if want to sell off urgently.

iv) More order coming in? I believe and look at the order industries, its covering electronics, semiconductor, hard disk drive, automotive & Pharmaceutical. I believe management start to focus on higher profit margin job, position themself better & more stabilised with order from different industries. If order keep on securing, then by calculation 1 quarter earning is 1.25 sen x 4 = 5.8 sen. If P.E. 10 times, meaning Genetec share price will be RM 0.58???? Seriously??

OCT 2015: PETALING JAYA: Genetec Technology Bhd has secured new orders worth RM26.1mil from clients who are global players.

In a filing with Bursa Malaysia, Genetec said the orders of RM25.4mil RM0.7mil were from clients in the electronics, semiconductor and hard disk drive, automotive and other industries, respectively.

MARCH 2015: PETALING JAYA: Genetec Technology Bhd has secured new orders worth RM40.6mil from clients who are global players.

In a filing with Bursa Malaysia, Genetec said the orders of RM34.5mil, RM5.6mil and RM0.5mil were from clients in the electronics, semiconductor and hard disk drive, automotive and other industries, respectively.

JUNE 2015: KUALA LUMPUR: Genetec Technology Bhd has secured new orders from its clients worth RM27.3 million. 

v) Strong back up from major shareholder, KVC CORPORATION SDN BHD.

vii) Transfer to Mainboard and PROPOSED SPECIAL ISSUE OF NEW ORDINARY SHARES OF RM0.10 EACH IN GENETEC TO BUMIPUTERA INVESTORS TO BE IDENTIFIED AND/OR APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY

Something is BREWING......Something BIG.....

Thanks for Reading and this is just for sharing not asking you to BUY!!!!! 

TODAY SYNERGY IS TOMORROW REALITY!!