Semicon Industry prospect is good, but how about EG?

I did some analysis over the last few quarters & noted the following:
 

TOTAL BORROWINGS INCREASED

Total borrowings are increasing every quarters, borrowings has increased from 211mil @ 31/12/2015 to 235mil @ 31/12/2016.

During the same period, the company made net profits of 22mil but borrowings also increased at faster rate, RM24mil.

It means the more profits earned, the higher trade debtors in the books, then more banker acceptances (borrowings) needed.
 

RECEIVABLES INCREASED

Sales for 31/3/2016 & 30/6/2016 were both approximately 150m, but the trade & other receivables in Q30/6/2016 jumped more than 73m, no convincing explanation was given by the management.
 

PROFIT MARGIN REMAINED FLAT DESPITE CLAIMED HIGHER MARGIN AT BOX BUILDING

Management claimed box building will command higher profit margin, but the financial ratios shown in the past 6 quarterly results didn't say so.

The EBITDA margin was flat & almost same over the last 6 quarters. EBITDA (earning before interest, tax, depreciation & amortisation), in EG case, that's operating profits as shown in the QR:

EBITDA ratios for the past 6 quarters:

30/9/2015 ----- 8.3%
31/12/2015 ----- 6.2%
31/3/2016 ----- 8.8%
30/6/2016 ----- 8.6%
30/9/2016 ----- 7.6%
31/12/2016 ----- 6.5%
 

1H STRONGER 2H WEAKER, ANNUALISED LAST Q RESULT MAY GIVE FALSE HOPE

Sales & profits in 1H of the year were always stronger & were WEAKER in 2nd half financial year of EG. It can be seen from the last 3 years (2014, 2015 & 2016)

https://klse.i3investor.com/servlets/stk/fin/8907.jsp
 

CASH CALL FOR EXPANSION? SHORT OF CASH?

The company is asking money from shareholders again in the short span of time & this has triggered the concern of the market. Go find out yourself on the company's announcement in Bursa Website.
 

CONCLUSION?

I do not own any shares in VS or EG, just did my homeworks after VS was jumping up but EG is leaving behind with low valuation (PE).

I don't have any conclusion, you have to make your own decisions, to buy, hold, sell or just watch. Everythings are in the reports, go do your own homework.