The warrants you mentioned here were issued by 3rd parties such as investment bank, not by Uchitech. Therefore the capital share based will not be affected hence no dilution of Eps and dividend. I dont think this is concerning.

Esos is the one will have dilution effect. However, there are good and bad for employee esos, depend on how you view it.

Regarding the USDMYR, you also need to know if our BNM will follow US when FED cut rate. It hard to say MYR will definately strengthen when US cut rate.

Someone is buying too much i think keep asking ppl to sapu even though the results is only meeting expectation. Pls think independently.

Good luck for those chase high.

Compare the qoq share price performance vs qoq profit then you can have have some idea if it overvalued or undervalued

When director are buying, those who hold will say company has bright prospect even director is buying..positive to the company.

When director are selling, those who hold will say no worry bcz director just selling small portion of their holding..still positive to the company.

See how they invest nowadays?

How you get target price RM9.50? Mind to share and justify?

Thirdly, this is not an analysis at all..merely reported all the known facts..what is the views and where is the valuations?

How Samchem is relevant to Greatech in this Greatech post? If you want to discuss Samchem then pls go Samchem..not here please. Dont distract topic here and dont being hostile to me if you just cant justify the valuations here.

Where did you see my comment mentioning about politics? Its all about fundamentals..

I am providing my views by giving out fundamentals analysis supported by the numbers and valuation and obviously its overvalued now..its up to you whether you think its make sense or not.

Btw, are you buying too much until you subjectively defend the overvaluations?

Greatech result alone is good, but if you look at it together with valuations, this is really within expectation or you can consider it as underperformed. This is really NOT a 'WOW" performance.

Comparing to IB targeted profit of RM162m, Greatech YTD result is only meeting 45.6% of targeted profit, NOT even reach 50% for half year profit.

Core net profit Q1FY21: RM35.6m
Core net profit Q2FY22: RM38.4m

Qoq share price increase 33%, but qoq profit only increase 7.9%.

Simple Forward PE: RM9,002/(RM74m x 2)= 60.8 (This is very high PE)
PEG: Current PE/Forecasted Growth: 72/31.2= 2.30 (more than 1 means overvalued. Now its more than 2).

Look at the quarter profit carefully. I believe the range of quarter profit will be around $38m-RM40m for next few quarter. IB forecasted profit is also RM162m for FY21.

Also, look at the orderbook now. Its decreased to RM206m from RM293m last quarter. This tell you the company did not get any substantial order in the quarter.

Expansion wise- Look at the IB report again. Major expansion will only completed in 2022 year end or beginning of 2023. So you are still expecting even more QoQ profit in the next quarter?

So, judge by yourself. Do not chase high and do not affect by those always call for buy. I strongly doubt those who so positive or ask ppl to buy will buy at this price.

Stay cautious.

Dont be too over positive..this stock is absolutely highly overvalued..those keep shouting going up pls ask yourself, will you buy at current price?

Dont make other ppl rich using your hard earned money. Think logically and control your emotion.

Aussie, pls provide some constructive and useful comments here instead of showing some meaningless comments with full of your ignorance.

You are right MiaoMiao7. The so called investor now is not bother to look at valuation. They only look at what they want to see and what they believe bcz they are holding the share. They keep saying very positive things and keep asking ppl to buy at current price but they themselves will not buy anymore. They just want ppl to support the share price for them.

Dont be silly. I believe the recent share price shot up was due to someone is knowing the company will go for the interview/tv shows on last Friday and ppl buy ahead. The shows doesn't change the company fundamental actually.

Is anyone seeing more and more car manufacturer is shutting down its production? Is anyone seeing the risk?

TSMC capacity is already full for quite sometime. It will take at least few years for expansion and Frontken can only have growth until that time. In short term, dont be over positive and expect too much in the future results. Rather, do expect minimal or even no growth on its profit.

Greatech result is strong, but within expectation or you can consider it as slightly underperformed.

There is one off gain of RM11m so core net profit is only RM35.6m.

Comparing to IB targeted profit of RM168m (hence RM42m per quarter), Greatech result is only meeting 21% of targeted profit. (A good result should meet at least 25% of targeted profit each quarter).

Qoq share price increase 33%, but qoq results only increase 24%.

Simple Forward PE: RM7,550m/(RM35.6m x 4)= 53 (This is very high PE)
PEG: Current PE/Forecasted Growth: 71.7/35.3= 2 (more than 1 means overvalued. Now its 2).

Share price increase 20% since Mar till result released. Do not discount the possibility of ppl knowing results already and buy and trade ahead before result release.

So, judge by yourself. Do not chase high and do not affect by those always call for buy. I strongly doubt those who so positive or ask ppl to buy will buy at this price.

Stay cautious.

If you study and research carefully among the tech counter in bursa, almost all of their valuation is at very high level, despite most of it did not delivered strong growth in their latest quarterly result. This is especially true for ATE counter. You can try calculate the forward PE. Also, downside is definately higher than upside significantly and I dont know why ppl are still chasing ATE.

Inari is only the few left's with good profit growth, and along with reasonable valuation by looking at forward PE. Look at the net profit margin it achieved last quarter, it's improved significantly and even exceeded most of the ATE margin. This counter also pay decent dividend to reward investor.

Kkkkronok- Wow good investment.

I'm posting comment here not to spread negativity but I just cannot tahan a lot ppl that alrdy bought trying to affect others to throw money into this counter without looking at the fundamental.

Those ppl intention is they want to see the price climb and will sell if market not good. Why need to make others rich using your own hard earned money?

Hey Penguin88_ ,

Happy to defame me using almost same user name as mine?

ramunia, pls see properly on the name before comment.

Kkkkronok, it's good to be more cautious in market. Dont be just blindly chasing.

Frontken alrdy operate at it's full capacity.

TSMC can only allocate more job to Fronkent when TSMC got more machine. But the expansion will only completed in next 2 to 3 years.

So pls think of this and be realistic in your investment.

Now I finally know why Greatech is up so much. Looks like ppl possibly already knew this and buy ahead before news released.

Let's see if market will react like what it always do in the past for this kind of news.

Remember to share news here as well when Tesla share is down ya. If not you are showing your double standard. Thanks

Yes future is bright but current price is most likely alrdy ahead of future earnings significantly. This is valuation.

Dont invest just based on a sentence "Future is bright". Else you will not sustain in investment. Learn more in valuation.

Yes share are forward looking. So can you tell the forward PE for this year, next year and next 3 year?

You can even calculate the PEG from now till next 3 year to justify.

If you are able to calculate it and justify it's a good buy, then I will totally agree with you.

Good luck to you Dr_Brew

Dont just simply throw out TP without any analysis or justifications. Dont affect others new investor to buy just bcz you are holding it and want the price higher.

Most of tech stock price is already in next 2 year level. You still expecting it to go higher now bcz TSMC is expanding? Expansion will only be materialised in next 3 year and you now want the price reflect next 3 years price so that you can sell and run away? This action is most ppl wanted to have now.

So be aware and look at the risk and reward for this counter at current price.

Dont just blindly chase high pls. TP5 from IB is next year end TP and now you all are too optimistic and keep pushing price.

I can see a lot of so called guru post their own and student performance when market is good. But when market was down and this counter was down during last 2 month, all guru just diam 7. Dont even dare to say anything when market down.

Now they all active again in social media.

So dont be so easily affected by all those guru.

Pls use your own judgement to evaluate whether is current price worth investing.

The price is already standing in next 2 year level and a lot ppl still want to affect others to buy so that the price get supported to make their return looks better.

Looks at the valuation yourself. Dont tell me valuation is not important. A lot ppl laugh and perli me when I told them to look at valuation when investing in last 2 month.

Consequences is last 2 month was a good lesson where market slap their face kaw kaw.

Looks like all ppl started forgetting or ignoring why Greatech was being sold heavily in the past 1 to 2 month. They choose to chase high again.

Refresher on why Greatech was down:

1. Too high valuation: Current price is already standing at next 2 year level.

2. Lordstown issue: This is a very serious issue. Is this issue resolved? Any clarification from Management? If Lordstown remains a issue then this post a risk or change to the fundamental.

Dont be fooled by ppl's comments or those who always tell you positive things without any supporting or justifications.

Dont make other ppl rich using your own hard money.

Stay alert.

Bursabigbull- I hope you get my point and question right. My concern is the valuation.

PE78 is not high? PE 78 is worth investing? You can even calculate the forward PE or PEG of this counter to justify and share here. Share price increase so much until profit is not able to catch up.

Btw, I strongly doubt that you are a long term investor bcz long term investor dont really care about short term price fluctuations and will not keep on posting comments to justify the current price or valuation is still looks attractive.

Side note: Capital around the world is shifting their capital from tech/growth stock to value stock. Why? Bcz tech and growth stock PE is too high and this is a very strong reason for them to sell tech/growth. Be minded of continued of the selling pressure. (But like I said, you wont be care about share price if you are a real long term investor).

Bursabigbull- You are right share price follow the profit made eventually and that is why the share price come down now bcz share price run ahead of profit substantially.

We all know Greatech is good, just the high valuation is the matter now.

Can you share what you mean by "Earning can easily catch up with PE 78x"? What would be the expected earnings from you? How you derive and why you are so optimistic on such high earnings growth? When the expected earnings can be made? Mind to share?

Bursabigbull- They refer to a lot of retailers that claims themselves as trend investors. A lot from fb group, klsei3 and klse screener...

Mabel- Glove is also relevant during pandemic and post pandemic. Will you buy it? When we talk about trend, it's the industry trend + capital trend. Capital is clearly not in tech stock now until a more reasonable correction reach.

When ppl are buying tech stock in last year, they said they are trend investor. When now trend reversed where capital are clearly flow out from tech to recovery stock, the same investors say they see long term in tech stock.

Funny. Really funny.

The tech stock selling that goes global is all about concern of high valuation, which is high PE. You say world scenario is not counted?

Bursabigbull- Thanks for your comments. My point is just on valuation side- Investment must be made with reasonable price and valuation, no matter how good is the business future is.

Dont you think the 1 year forward PE, 2 year forward PE or even 3 year forward PE of this stock is extremely high even you have accounted the future growth of this stock? You can have a look on the report available for reference on how high the PE is being used.
1 point to note- FY22 PE is being used to value Greatech (Now is only March 2021), while others stock they are using FY21 PE. What is the logic here?

I believe if the trend of selling tech stock continue, the targeted PE will most probably be lower down hence TP as well.

To protect our hard earned money, we must consider carefully the risk of current price. Is the current price reasonable? Is downside higher or upside higher at current level?

If you are long term investor, then you could just close your eye and dont look into the price movement.

Before the sell off of tech stock, when talk about high PE and ask ppl to think twice, all ppl are laughing and say PE is old minded ppl method. Take a look around the world selling of tech stock now. What is the reason of selling? It's all about the stretched valuation. Cheers.

Any investment is worth investing only if the risk and reward is attractive which measured by valuation. Currently risk is still higher than reward for this counter and valuation is still at high side. This counter will need to drop more reach a reasonable price. Else personally dont think it's a good investment.

I still dont think current price is reasonable bcz it's still high forward PE. Reasonable price will only appear when drop more.

World market now is selling aggressively for those tech stock that is over traded that cause high valuation. This call 杀股值. Trend is expected to be continued due to:

1. Rising bond yield
2. Trend is changing from tech to recovery stock

Hey pang72- Any idea what is the potential upside and downside for current price?

Did anyone ever consider the risk of the world car manufacturer to defer or delay purchase order on LED due to shortage of car chips that stop car production?

Mr.Sm Invest123- Dont defame Top Glove to make penta looks better la pls.

Top glove has no exposure in ATE at all but if it want it can buy all Penta shares in bursa with just of its 2 quarter net earnings.

So pls correct your attitude.

Good result, but within expectation. Q4 Energy availability factor shld be alrdy highest and dont expect to see high factor again in near future. I think Growth alrdy fully captured in 2020.

Think twice before making decision. Unless you are too excited of the share split (BI or share split is too common now in Bursa)

roimekoi- Are you serious? Whole market has been knowing Penta and Vitrox are competitors for dont know how many thousand years alrdy but you dont know and still dare to come out say something make you like very smart...walao

If not mistaken this time Nasdaq correction will last for some time due to sustainable high bond yield that will bite into stock especially growth stock that with high valuation. This is happening all around the world now. That why dont chase high.

Honestly, Penta reported a quite disappointing results. Look at the closet competitor Vitrox how they deliver the earning.

This Q4 will report lower earning if not the bcz of the income tax credit. If use core net profit, the qoq growth is only 3%. Q4 20.6 (22+1.8-3.2) vs Q3 20 (15+5).

Samchem this QR is definately one of the excellent results among all the QR that released recently. Profit growth is superb and able to justify the share price increase (Not like most of the tech company that reported lower than expected profit growth qoq but share price increase substantially)

1. Yoy growth 160.9%, qoq growth 89.5%
2. Good result due to increase in selling price, margin expansion (net profit margin increase from range 1-2% to 3-6% recently) and finance cost reduction.
3. There is one off item of RM3.6m provision of doubtful debt. Samchem could report higher profit if this not happen
4. Declare 2 cents dividend
5. Low forward PE

This company is really in low profile and just focus on its business and will reward its shareholder in dividend. Earn more, pay out more to shareholders.

I also think that the good performance was partly due to weak USD bcz Samchem import from oversea. If USD weaken further, Samchem is likely to benefit. Also, most of the countries are starting to recover from covid and this will increase the demand for chemical slowly.

My 2 cents.

Looks like a lot of expert here.

They are saying:

1. If growth is 100%, share price will up, regardless how many % share price increase in the past.
2. If growth is 10%, dont worry, share price will up, regardless how many % share price increase in the past.
3. If growth is 1%, dont worry, share price will also up, regardless how many % share price increase in the past.
4.If no growth, dont worry, share price will also increase.

To them, as long as they hold the share, the price ahould increase forever bcz there is growth or eve no growth. No need to see price in the past.

Good quarter, but definately lower than expected profit.

Only 9.4% qoq growth vs almost 50% run up of share price since Nov2020 till today. Justifiable?

Look at IB estimated profit and compare the actual profit achieved. Its lower than expected.

But dont worry. Many will come out and shout at look at long term dont look at current bcz current is history. They try to defend the high PE. This is how ppl investing now.

But they never think of future is built based on current and current decide future. Haizzz.

IMwhatIM- I think your comments make sense only if you are a long term investor. (Not sure whether you are or not)

The report alrdy projected high growth in revenue from 2021 onwards to come out the tp.

I dont know how investor can see beyond fews year down the road as we cant even have the visibility in the coming year. Do you mind to share?

Thanks gemfinder for the report.

However, we must use our judgement to read the report.

The TP is based on 2022, and now we are just in Feb 2021. Market price now is RM6.22, meaning about 10% upside from now till 2022.

Do you think upside is greater than downside or downside is greater than upside within this 22 months?

Those want to chase now must consider baik baik the risk and reward.

So you are saying you are gambling instead of investing?
Gambling is "modern minded thinking"?