Edelteq Berhad Financials Overview:

1. Cash Ratio, Profit Margin, and Net Asset Value (NAV):

2. Upcoming Prospects:

Edelteq Berhad remains cautiously optimistic about its future in the semiconductor sector, driven by:

• Cash Ratio:

  As of September 30, 2024:

  • Cash and bank balances: RM 3.93 million
  • Current liabilities: RM 4.78 million

    Cash Ratio = Cash / Current Liabilities = 3.93 / 4.78 ≈ 0.82

  A cash ratio of 0.82 indicates that Edelteq holds enough liquid assets to cover 82% of its short-term liabilities, reflecting moderate liquidity.

• Profit Margin:

  For the cumulative quarter ended September 30, 2024:

  • Net profit: RM 3.25 million
  • Revenue: RM 18.62 million

    Profit Margin = (Net Profit / Revenue) × 100 ≈ 17.46%

  A profit margin of 17.46% shows strong profitability relative to the company's revenue.

• Net Asset Value (NAV):

  As of September 30, 2024:

  • Total equity attributable to owners: RM 49.12 million
  • Total number of shares: 532.54 million

    NAV per share = Total Equity / Number of Shares = 49.12 / 532.54 ≈ RM 0.092

  The NAV of RM 0.092 per share reflects the company’s intrinsic value based on its assets and liabilities.

• Global Semiconductor Industry Recovery: The industry recovery is progressing slowly. Key growth drivers include artificial intelligence and memory segments, while mobile appliances and networking devices present mixed growth signals.

• Semiconductor Consumables & Materials Segment: The company expects sustained growth, supported by localization efforts from multinational corporations to reduce IC assembly and testing costs.

• Automation Segment Expansion:

  Edelteq aims to enhance its wafer-level auto optical inspection capabilities. By offering more advanced inspection machines, the company targets new clients and opportunities for growth with its existing customers.

• Long-Term Strategies:

  • Product and service diversification
  • Improving operational efficiency
  • Expanding its market reach
  • Developing a comprehensive growth plan to adapt to evolving industry trends.
    

Overall, Edelteq’s financial position remains stable, with a focus on strengthening its presence in the semiconductor space despite external challenges.

Technical Analysis

EP 33c

TP 40-42c

CL 29c mayb

Risk and reward: 2-2.5 times

Same month start goreng - Jan2024 now Jan2025