@ooihk899, would you like to predict 2022 Q1 EPS?

I think like many other EMS, FPI too is hiring both local and foreign workers but I do not know the ratio. To achieve a high degree of automation might not be realistic for complicated assembly because the product design is determined by customer and the design always change because of the need to produce new models every year. Also, due to pressure to complete product development in very limited time, a designer might not put as much effort to think of manufacturability of the design but to quickly finish the project. So I believe they still need lots of workers even though they could automate some of the processes. As for the business prospect, I agree with you that it is easy for the OEM to register double digit growth for smart audio and musical instrument section provided the OEM is attached to the right customer. FPI has been allowed to work full swing and achieving higher revenue in Q4 qoq and yet is still facing shortage of labour. If OT is able to solve the labor problem they wouldn't have mentioned this in the report. That means, order in 2022 should be considerably higher than 2021. And I believe Taiwanese's capability to solve problem.

@zzprozaz, raised already, more than enough to cover cost hike and prosperity tax and profit increase if monthly TIV maintain above 40,000.

I'm expecting revenue and profit growth in 2022 to be 10% or more.

@Thirai, I think revenue growth came from Roland, Sony and increasing orders from other customers and maybe a new customer. I believe contribution from Wistron will increase tremendously in 2022.

In the quarter report and annual report, you can see related party transaction with Wistron.

FPI is OEM / ODM for Sony, Bose (not sure about present), Kenwood etc. I'm not sure who are the top 3 customers of FPI but I believe they are Sony, Roland and Sonos (through Wistron). Is that possible for you to get some verification from other sources?

@Thirai Thiraviam, I think resent sell down of FPI is due to market's over worry about the spilt effect of this news: https://focusmalaysia.my/andy-hall-severing-ties-with-vs-industry-for-backtracking-on-its-promises/

Oil palm trees are also entitled for holidays? o_o

"...palms entered into a resting phase" what does it mean by "entered into a resting phase"?

no reply yet..

Hi Pinky, I run a quick check, from 2011 to 2020, average difference is +3.1% but individual year difference could be very big, from -20.4% (2011) to 42.4% (2019).

Deduct the 20 sen to be received soon, if you buy at 3.81 it is like buying at 3.61 post dividend. Would you pay something that gives 20 sen div per year, annual EPS close to 40 sen with aggressive growth and net cash of above 80 sen per share (minus the 20 sen div) for 3.61? Maybe it is the most value for money of EMS stock in Malaysia at the moment.

Look at the white candle sticks before quarter report out, probably that explains why the price does not move as strong and fast today.

Relatively quiet...

This year AR a little bit late

Hi Supersing, I think utdplt is still better than petronm

Very happy

Hi LossAversion, I mean the one disclosed as "major customer" in the annual report.

Everything looks fine for me except the price of the forward sales / commodity future. Lets see the annual report that is soon to be released.

Hi Supersing, the stock doesn't know that you own it.

It is half by revenue. But could be far more than half in tonnage. Hmmm.....

Half of the CPO sold to related party... could this be the reason?

I'll be happy if proven wrong. But that's my worry until now.

The chances of price going too high is always greater than the chance going too low, I mean in long term. That's because the bottom of the price is somewhat limited by the production cost of the most competitive producers. If these two risks are given equal weights in forming the contract, the shareholders are going to loose big in long term.

I had a feeling the selling price won't go up substantially next quarter. I believe there's something wrong with the method of pricing in the commodity future....

Hi Ooi, I wrote already. No reply yet. That would be nice if anyone has asked and got a reply and is willing to share...

But I thing I couldn't understand. Why they continue to sign the contract at very low prices because I think they had months to do the correction since Jan 2021 and until Sep 2021 they are still selling CPO at around RM 3000. Is this incompetency of the management in this area?

Before this I was expecting 18 sen total dividend per year

Expecting 14 sen dividend annually plus 1 or 2 sen special dividend.

I guess 80 sen

Sales remain strong. Just that cost is high. The high cost will be soon transferred to the consumers.

We do not know how deep and how long the company is bound to the contract to sell the CPO at low prices.

Heavy trading today...

Hume is a seperate entity

Maybe because of considerable correction (reduce) of the gross margin to normal level of 12%+.

If Ajinomoto is priced at RM 15, HLIND should be priced about the same.

Hi zzprozaz, it is a good result as long as sales is more than 40,000 units. Anything above that is excellent. This is expected because lots of people trying to avoid the sst by buying before 1st Jan 2022. If every month can maintain 41,500 then annual EPS should be quite satisfactory.

Is FPI supplying anything to Flextronics Systems Penang?

The increase of minimum wages are always connected to very high exports. I believe government's faith and courage to increase the minimum wages mainly comes from the result of very good and sustainable export.

As a result, labor intensive and low productivity business will be flushed out over time. Service sector including restaurants and hotels will be more challenging. Leaders in the manufacturing sector that produces excellent products that help the productivity of the B40 and M40 (domestic and export) such as home appliances, motorcycles, furniture etc. will remain profitable and continue to enjoy growth because they are able to not only pass the cost to the customers but increases the price moderately as the purchasing power of the lower classes improve globally.

I'm expecting minimum 10 sen EPS for 2021 Q4

Hi Johnzhang, may I know where did you get this info
"FCPO average from Feb to Dec 2022 as at 7/2/2022 is $5,189"

To lure you selling

CPO heading to 6000

As for the number of workers, I don't have the info but I don't think 15k is the right number. The actual number could be A LOT smaller.

I believe HLIND (Hong Leong Yamaha) like many other companies that produces branded and quality products pay higher than minimum wages to retain skill and productivity. So the impact should be minimal. Also, raising of minimal income domestically means more B40 can afford motorcycles which is their favourite choice of transportation. Therefore I think the positive impact should be higher than the negative impact.

If I were FPI's customers, I would ask FPI to rush out more products to be shipped in 2nd half of Q1 2022 and Q2 2022, to secure the supply of goods. With so many travel restrictions, where can you enjoy your holidays? Use the air ticket money to buy some good audio to enjoy at home lah.

Hahaha. Maybe:
1. Majority of the people do not believe that
2. They have other information which make them believe otherwise
3. They would rather choose to verify this by themselve by viewing the next quarter report
As for me, I think FPI is still fine and picking up more orders.

I read from somewhere that Yamaha has been agressively increasing the number of motorcycle service centre in Malaysia but I couldn't recall the source of the information. Maybe someone else here could help.