Wait until you see them utilising the RM300 million cash and cash equivalent

Kobe / YiStock, I think you are being very stingy of according 19% PAT Margin. First the PAT Margin for Q1 is more than 22% (after adjusting listing expenses). Second, how about the additional income coming from interest income given that their cash on hand is close to RM300m as at 31 March 2018, and cash from operating profit before working capital changes of more than RM20m per quarter. Third, the new plant which schedule to operate soon, should give the company more capacity to do more orders. Hence, my target is Q2: RM105m, Q3: RM110m, Q4: RM130m (Q1: RM99m). Total annual: RM444 million. PAT Margin 25%: RM111 million. Buffer 90%: RM100m. Cheers!

http://klse.i3investor.com/m/blog/YiStock/158009.jsp -> well written! while most company is focusing on 1 sector, this baby is focusing on 2 sexy sectors!

@geary given that management has just completed the listing in HK, we should give ample time for management to show how they can effectively deploy their capital. Our bet now is either get additional interest income + growth in current business, or only the latter. In whichever situation, its a safe bet.

@sonyx123, true also. How about the huge cash on hand? They could just buy another supporting business e.g. MMSV, and immediately add RM3m/quarter or RM12m per year hypothetically. For a company that is shy away from RM100m revenue per quarter with order book guidance and huge inventory balance, its still confusing why the market cap is not growing fast enough.

How come Penta has the same market cap to KESM and Elsoft when Penta PAT is almost double of KESM and Elsoft, cash balance is so huge, give guidance on the order book....