From EG Annual Report
Financial Year Revenue (Mil) EBITDA (Mil) EBITDA % Receivables (Mil)
FY 2011 577.4 23.72 4.1080707 95.564
FY 2012 564.9 27.37 4.8451053 147.646
FY 2013 502.8 29.96 5.9586317 137.454
FY 2014 700.5 37.08 5.2933619 148.23
FY 2015 636.1 42.502 * 6.6816538 155.562
FY 2016 712.69 56.56 7.9361293 273.258
FY 2017 (3Q) 747.545 50.378 6.7391261 308.172

** Minus one-off item of 6.725 M and 8.793 M

My view: Receivables growing in tandem with revenue. Reasonable for me. EBITDA margin also growing steadily. However, do take note that FY2017 EBITDA margin will not surpass FY 2016. CEO has already explained on this, they have taken in more PCBA orders from Dyson.

Discover the article already.

http://www.focusmalaysia.my/Mainstream/eg-industries-banks-on-box-build-for-growth

Thanks, zombie321. Management has confirmed on that.

Thanks for the info, yeong55. What about GoGo Color Run Carnival, is it part of the function?

This is my naive calculation, first I give a discount to the total revenue, say 970 mil.

970 mil – 747.5 mil = 222.5 mil

Out of 222.5 mil, 50 mil is box-build and 172.5 mil is PCBA.

Box-build : 50 mil x 10% = 5 mil net profit

PCBA: 172.5 mil x 0.45% = 0.78 mil net profit.

Total = 5.78 mil net profit.

Do you expect the full financial year revenue to hit 1 billion? The procurement senior manger in their latest newsletter mentioned about this....

VenFx, my calculation is about 5.8 mil - 6 mil, depending on how much box build orders are recognized...

VenFx, wanna speculate the coming QR profit for some fun?

我也來討論一下。如果說‘很少會有船在檳城直航去歐美。在出口的選項遠遠不比新山’，那麼身在檳城的PENTA MASTER，MMSV，IQGROUP。。。等等，他們是如何把電子成品SHIP給國際客戶? 在KEDAH KULIM的電子廠又如何? 再看看附近完全沒有碼頭，身在IPOH的SALUTICA，他們的出口是否就做不了?

EG R&D Sdn. Bhd awarded Malaysia Enterprise Innovation Awards 2017.

EG Industries Bhd awarded Golden Bull Awards 2017.

The concerns about receivables are superficial. If you study well the QR of VS and Skpres, all their receivables spikes as well, this is due to their rapid expansion.

Expansion brings in more sale, just like what is mentioned by the management of Geshen. When sales increase, the rise in receivables is inevitable.

https://klse.i3investor.com/blogs/kianweiaritcles/125023.jsp

"至于Receivable的提高，这是在所难免的，一旦Sale提高，Receivable自然而然的一定会跟着提高，没有顾客喜欢用现金结帐的，我们也必须给予顾客一些条例与便利。"

Many have overlooked the huge potential of vehicle tracking market.

http://www.bnm.gov.my/index.php?ch=en_announcement&pg=en_announcement&ac=529

Starting 1st July 2017, Malaysia has kicked-off the 2nd phase of de-tariffication (liberisation) of car insurance. Meaning to say, new car insurance is no longer rigidly offered based on the age of driver
(and car), and engine capacity. New insurance will take into more risk factor.

https://www.forbes.com/sites/sarwantsingh/2017/02/24/the-future-of-car-insurance-digital-predictive-and-usage-based/#3bf6c7ed52fb

As stated in the above website, the future of car insurance will move towards 'digital, predictive and usage-based.' This is where there will be a tracking device inside the car to track the information of the driver's driving behaviour and surrounding geographical condition, in exchange for a fairer insurance premium.

As a manufacturer and distributor for vehicle tracking company Tramigo. EG will surely benefit from this car insurance market transformation.

So, think twice before you throw EG.

VenFx, it is interesting. EG initially as a pure PCBA company, has upgraded itself to do plastic injection molding. As a plastic injection company, Skpres now also wants to do PCBA.

Shortcut Lab has launched the crowd-funding for their new product: Flic Hub.

https://www.indiegogo.com/projects/flic-hub-simplify-home-control-with-smart-buttons#/

The Flic Hub will have 3 connection - Wifi, Bluetooth, IR. Now the usage of Flic button no longer requires the presence of smartphone.

This new product is likely to accelerate the sales for Flic button.

同意VenFx。今天進了一些。有心人要壓低母股，還真是不遺餘力。

Charlie, I share the same view. If they were to follow the tentative schedule to announce the finalized RI, there are 6 trading days left in this month.

Me too. Not much information disclosed.

Even from the RI prospectus, EG mentioned they have secured new box build worth 150M per annum for the next 2 years (that means a 300M box build orders). But sadly, everything is so quiet.

:D

" In fact, cordless hairdryer & bladeless fan has been awarded to Eg .
With available plant capacity , Eg likely to secure more order after customer D plant visiting."

VenFx, the cordless hairdryer and bladeless fan, are they box build orders?

If the one that come to inspect EG plant is customer D, as mentioned by Kang in the article:

“部份厂区仍在规划中，待海外客户审核后将会投运，产能将走高至85%左右。”

江邦建认为，海外客户合约虽未颁发，但客户有意到工厂进行审核工作，合约到手只是迟早的事。

Then this could be exciting.

Just to clarify further, EG only do PCBA for customer D, but VS is doing complete box build product for customer D. From the result of VS, you all have seen the power of 'box build'.

Up to date, EG has garnered more box build orders, and they are now also actively pursuing customer D to give more box build order to them.

Put your trust in the management of EG.

VenFx, I salute you. Because you dare to talk even when the share price is stagnant. Some people only dare to shout when the share price is sky-rocketing.

By the way, Comcorp proved you right.

Venfx, you are right. From the press release statement, since EG already doing PCBA for customer D, the management is now actively pursuing customer D to award box-build contract to them.
If successful, it's going to be huge.

"Fly_ , how do u see prospect for Pcb & Pcba ?
I'm suggesting Ems players should seriously relook on Pcba ..."


VenFx, PCBA is a very low margin business. Can't solely depends on PCBA.

We can do a simple calculation to see the situation here. From 253.1 M revenue, 42.8 M is from box-build. Box-build normally gives profit-margin of around 10%, which means that box-build profit is around 4.28 M. This leaves the profit from PCBA around (5.28 - 4.28) = 1 M.

This means that the profit margin of PCBA is just (1/210.3) = 0.475%. So you can see how low is the profit from conventional PCBA business.

Box-build/Vertical Integration is the key to survive and shine. The company is moving towards this direction steadily and has shown positive results, more to come.

margin is low because 83.1% of this quarter is from PCBA, which is traditionally lower margin business.

Besides Tramigo, let's take a look at how another client of EG - Shortcut Lab, is doing.

From the recent study from a website, it appears that Shortcut Lab has attained explosive growth (top 5 in the ranking), the revenue has increased nearly 4000% from 2015 to 2016.

https://medium.com/@nordictechlist/revving-up-revenue-baaa4afec31f

Going into 2017, Shortcut Lab has launched Flic Single, and now a new product (Flic Hub) is also on the way. This is a Flic that is connected through a hub, no longer dependent only on handphone's bluetoooth.

http://hub.flic.io/

Let's see how this development bode for EG.

Venfx, it is true he is ambitious. When I first heard about SMTT City, deep inside my heart I was laughing, as all I have wanted is a double digit growth in revenue and net profit (so far delivered).

Beside Alex's vision, the most important thing is that they are on the right direction. EG mentioned before that most of their client are growth-centric.

For example, vehicle tracking company Tramigo. From sources, local mass production from Sungai Petani plant is on the way.

Vehicle tracking is a sun-rise industry, anticipated to grow at a CAGR of 20%. To understand more on vehicle tracking, I suggest that this link is useful.

https://www.gminsights.com/industry-analysis/vehicle-tracking-market

Actually on 7 March, EG has signed an agreement with a local human resource management company, Visual Solution. However, it is not known how much the contract worth.

第6面，first two lines:

The Group shall utilise up to RM10.0 million to purchase raw materials for its new
box-build contracts that were secured during the current financial year.

據我們所知，最近一次的Contract是Shortcut Lab的Flic，但已經是上一個FY 2016的事了。現在FY 2017到目前為止還沒有公佈任何新的contract，那麼上面這個無論是新公司的contract，還是現有公司的increased order，都是一件好事。

Thanks, VenFx. The one year is painful to endure.

I am the one who holds for more than a year.

Flic is doing well, ramping up production to sell in major electronic store.

http://www.nyteknik.se/startup/nu-kommer-svenska-succeknappen-i-ny-version-6802635

Number of share increased due to PP last year and also ESS.