this news just come when takafuk call warrant is about to expired . so ngam. another tactics to press down the price ?

and recently , the blogger revealed that he had to sold foundpac at Mid of 2019 , due to he couldn't really understand why with such impressive results , the price didn't move .

haha. not sure . as I'm playing for mid to long term investment . mid 2019 , there was a blogger did a FB live with theme surrounding the company achieve impressive growth but share price either remained stagnant or dropped .

I mentioned fpgroup during the fb live . I was scolded by him with my name being pronounced . "FOUNDPAC GROUP DROPPED BECAUSE INARI IS NOT DOING WELL " I was confused. as at that time they didn't have major customer , direct order from INARI stood at 1% .

https://www.bloomberg.com/news/articles/2019-07-15/cocoa-s-opec-moment-puts-world-market-on-track-for-boom-and-bust

its old news .

I talk based on the facts on the QR. anyway , the rationale to report to IR is questionable, as they barely able to do anything . i jump ship from pestech with minimal loss , but it
was necessary

secret : I guess better sell ? very high risk , then low threshold for selling.

no one actually questioned the management team during AGM ? I wish I could attend the AGM but unable to do so dud to logistic issue. living in East msia

KRONO ASIA BERHAD
regional EDM solutions provider through our subsidiaries and associate. Its portfolio of products and services provide our clients with the ability to achieve data assurance and protection through the systematic backup, storage and recovery of enterprise data to ensure business continuity.

Fundamental
PE 18
ROE 9.24
DY 2.7%
Current gearing: 74%
Net cash position at 5.4M
Price RM 0.74

Company profile
products and services provide our clients with the ability to achieve data assurance and protection through the systematic
backup, storage and recovery of enterprise data to ensure business continuity as follows: -
• On-site data backup and storage.
• Off-site backup and storage for long term archival.
• Data recovery and restoration.
• Problem escalation and resolution in the event of issues or errors during the backup process.
• 365 days, 24 hours a day, 7 days a week technical support; and
• Consultancy on process improvement for data assurance, data protection and disaster recovery.
• The above-mentioned are delivered via the Group EDM Infrastructure Technology and EDM Managed Services division.
Currently, the Group has presence in the following countries - Malaysia, Singapore, Thailand, Philippines, Indonesia,
India, Hong Kong, Taiwan and China.


Review of performance and financial situation for FY 2019

Revenue contribution by geographical area (Q319)
Singapore: 25%
Philippines: 39%
HK: 6%
India 6%
Other SEA: 5%
Others: 19%

Revenue contribution by business categories (Q319)
EDM infrastructure: 93% (gross profit margin approx. 22%)
EDM management service: 7% (gross profit margin approx. 60%)
Recent acquisition
2017: Quantum Hong Kong RM 45M
2018: associate with Quantum China
2019: Sandz Singapore RM 75M (which required private placement in 2019)

YoY
Revenue: improved from 41M to 81M, due to the recent acquisition, net profit improved from 5M to 6.7M. however, the profit margin has dropped to 8.3% from 11.5% due to higher cost of sales. (unexplained reason in QR, likely factor out of company’s control), however, the management is able to keep admin expenses and distribution expenses under control despite almost 100% increase in revenue. (97% up in revenue, 11% up in selling and distribution expenses, 71% up in administrative expenses.)
Cash flow: positive operating cash flow of 6M, no free cash flow (negative 12M after investing activities)

Trade receivables increased from 28.7M to 86.4M (vs revenue 41M to 81M, receivables ratio increased from 1.46 to 0.9)
• According to the annual report 2018, 98% of trade receivables paid within credit terms, only 0.7% of receivables past due 31-60 days, 0.06% past due more than 91 days
• Recommendation: to follow up the receivable trend closely in coming QR
Trade payable
• Fluctuating in between 8M to 31M
Cash and debt position
• Total borrowing increased from 27M to 43M, however, at the same time , the company is able to maintain the net cash position for most of the quarter despite presence of major acquisition

Market outlook and Prospect.

Global enterprise data management market outlook report, 2017-2023 (details of the report is not available due to the whooping price tag at 2.5k USD)
Global enterprise data management market is expected to reach USD 146B with 12% CAGR. Asia pacific region anticipated to be the fastest growing market, especially India, Japan, south Korea and China (which may indicate more than 12% of CAGR in market size in these areas.)


Benefits
1. Overall, EDM market shows strong demand worldwide, especially Asia Pacific and North America.
2. Advancement of 5G may benefits and increase the demand of data storage, big data analysis.
3. Industrial revolution 4.0 indicated expansion in quality, volume and variety of data. (which is a risk as well), which may increase demand of EDM related products.
4. Relatively strong financial performance.

Risk
1. Huge competition from IBM, ORACLE, IBM, etc
2. Industrial 4.0 increased demand on system with highly computerised, digitalized, AI enhanced and IoT, where relevant industry or players are required to stay competitive.

past 9 seasons the operating cash flow has decreased from 73M to -189M . scary

要发达，先阿妈达

trade receivables trade payables REVENUE
17Q4 100971 181112 114582
18Q1 85538 230000 184878
18Q2 103979 330000 277960
18Q3 128251 413106 260915
18Q4 122391 423773 119304
19Q1 156254 365493 124085
19Q2 126494 417103 178635
19Q3 165348 465025 222061
19Q4 211585 493732 285257

this is the trade receivables and payable trend for pestech . any input ?

waaa. company got 1.5B contract on hand and should be able to make them busy for 2 years . if this turns out to be true then will be difficult . . had to sold all of my stocks as found other stocks with better potentials

where got buy call o , I watched his FB live , he said can consider to buy in batch . this stock is good , undervalued .

yeah charlie , with these projects on hand , the revenue is likely to be doubled up for fy 2020 . so another kerjaya in making ?

from Islamic population alone , Islamic insurance has higher market opportunity due to proportion and population growth. . some universities has appointed takaful as student insurance partner . the recently mysalam is likely to be powered by takaful as well .

I found this in klse screener there . I'm not sure how accurate is that .
This is just rough estimation .
current outstanding project

Aug 2017 commence AIRA residence 432M 36 months 12 M per month
Nov 2017 commence Menara Hapseng 313 M 24 months 12.5 M per month


Contracts won by GDB in FY
April 19 commence Trans resources 135 M 30 months 4.5 M per month
Dec 19 commence Cloudvest desapark 517M 37 months 13.7 M per month
Jan 20 commence KK Hyatt centric 213 M 22.5 months 9.4 M per month
Nov 19 commencement Bison Substructure 20.67M 21 months 0.9 M per month
Nov 19 commencement Hap seng Star 67.9M 15 months 4.5 M per month


performance of Q4 2017 to date is in keeping with the contract won .
Rough estimate for revenue based on the calculation
Q4 2019
Revenue 78M /- 4.5M, with average profit margin of 10%, 7.8M /- 0.45M


FY 2020 (different phase of project will have different recognition of profit and revenue, thus estimation will be calculated in annual basis.)
Revenue 500M /- 10M , with profit margin of 10% in average . 8 sen of EPS ,
At same PE , in end of FY 2020 , this stock will bring fair value of 80sen – Rm1 , assuming profit margin same as past performance , at PE 10-11. to consider safety margin, this stock will worth around 64 to 72 sen .

if the company continue to win contracts in 2020 , it will boost the profit further .

current order book is impressive. but company might take loan , due to contract assets.

with the current order book on hand , the revenue will be boosted by 100% compared with 2019FY , another Kerjaya in making ?

yes . after 2pm today suddenly there was total selling volume for at least 3.3M . during morning the was less than 100k .

anyway duncan , do u think takaful has brand effect in malaysia insurance market ?

brand effects as in , whenever 4WD was mentioned , first thing come to your mind is hilux , and so on for milo in chocolate drink , tvb in HK drama .

from the name of company , i believe takaful is benefited from such effect , as literally Takaful means islamic insurance according to syariah.

thanks for the input . yeah . just averaged down a bit . I'm looking forward strong growth from takaful.

this takaful really messed up my portfolio . and what more frustrating is , there is no obvious reason behind , even with good fundamental ,and prospect .

Estimated earning for 2020 FY fin foundpac group
https://www.thestar.com.my/business/business-news/2019/09/23/foundpac-expects-strong-growth

CEO expect growth of double digits in FY 2020
Orderbook for first half of FY 2020 has exceeded 25M , up from first half of 21M 2019 FY .

their key type of materials are stainless steel , aluminium and engineered plastics . the first 2 mentioned materials is facing weak pricing.
Price of commodities from jan 2019 to oct 2019
1. Steel : 3800 USD to 3400 USD
2. Aluminium : 1800 USD to 1700USD
In FY 2018 , the profit margin was 21% whereas during the weak price of steel and aluminium , the profit margin was 26%

Hence there close relation with the profit margin of the company and the price of steel and aluminium. Coming QR the profit margin is likely to be close to around 27.5-30%
Next 2 QR is likely to get about 3.1-3.8M of profit . with EPS of 2.6-2.8 sen per Q , with the current PE of 21 , the intrinsic value of this stock is 56 sen . at PE of 30 , this stock will worth around 70-80sen

Historical high PE
2017 June : annual profit 10M , eps 1.8 , price average 60 sen , PE 30

from what I know , unisem is more to chip and waffle business . vitrox is more to inspection and automation equipment and module , they do have PCB related business too . but this QR vitrox is hit by lower demand on inspection and automation business . hope fpgroup business remains good .

vitrox and unisem kaboom . any 3xperienced technology stock investors can tell whether fpgroup is similar with all these companies ?

is anyone going to their coming AGM next month ? would like to go but unable to make it due to bad logistic issue . want to find out their main direction of coming financial year .

read through the annual report , they said they don't have single major customer for over 2 years . so the previous broadcom news still relevant ? I also think it's outdated as that focus Malaysia was 271issue .