Enovix Corporation (NASDAQ:ENVX) Q3 2024 Earnings Call Transcript

https://www.insidermonkey.com/blog/enovix-corporation-nasdaqenvx-q3-2024-earnings-call-transcript-1383222/

Enovix Corp (ENVX) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic
https://finance.yahoo.com/news/enovix-corp-envx-q3-2024-071542897.html

Enovix and Leading Smartphone OEM Execute Development Agreement for Mass Production in 2025
https://finance.yahoo.com/news/enovix-leading-smartphone-oem-execute-200200708.html

Enovix Announces Third Quarter 2024 Financial Results
https://finance.yahoo.com/news/enovix-announces-third-quarter-2024-200500900.html

I just checked its prospectus. One of the risks mentioned was that they were dependent on foreign workers in their operations. Share price drops maybe because the increase of minimum wage. And company may have to contribute to EPF together with their foreign workers.

Enovix to Release Third Quarter 2024 Financial Results on October 29, 2024
YBS will report most likely next month

if the price hit new low, be prudent and sell first and buy it back later if you like the company

bad market sentiment, also another export stock, P/E is also not cheap. Anyway, hopefully there is good surprise tomorrow

recently export stocks all drop... good luck to those who subscribe to this stock successfully.

Enovix: Manufacturing Ramping Up Through H2 But Investor Dilution Ahead
https://seekingalpha.com/article/4725186-enovix-manufacturing-ramping-up-through-h2-but-investor-dilution-ahead

According to the article above, the estimated revenue of Enovix:
FY 2023 7 mil
FY 2024 20 mil
FY 2025 53 mil
FY 2026 236 mil
FY 2027 562 mil

These estimates are nice but they are just estimates. Nobody is sure what will happen in the coming years. The share price of YBS is unlikely to jump much while investors wait for more financial data when quarterly reports are announced. I look forward to the next milestone announcement and the upcoming quarterly reports.

the calculation of EPS used in QR is based on the weighted average number of ordinary shares in the Company of 419.02 mil.
the enlarged number of share after IPO = 843.2 mil
we have to recalculate EPS based on the latest number of shares
roughly, 1HFY2024 EPS = 4 sen based on the enlarged number of share

According to AmInvest, 2HFY24 should see stronger revenue growth as 2H is seasonally stronger period, which follows the general seasonal trend of car sales. However, it will incur margin compression in 2HFY24 due to start-up costs relating to its Kulim Plant 2 opening.

Strong earnings growth prospects with FY24F-26F CAGR of 16

Almost half of its raw materials is imported, so a strong Ringgit will help its margin.

YBS inks MOU to acquire stake in precision manufacturing companies for RM167m.
https://www.klsescreener.com/v2/news/view/1394117/ybs-inks-mou-to-acquire-stake-in-precision-manufacturing-companies-for-rm167m

刘镇东：柔新若能合作好，就能带动大马第二次经济起飞
https://www.youtube.com/watch?v=p1DH-OOV4Cg

In the video, he also mentions what the government is trying to do:
- raising wages
- encouraging women to work to increase family income
- welfare reform to cope with aging society

刘镇东：柔新若能合作好，就能带动大马第二次经济起飞
https://www.youtube.com/watch?v=p1DH-OOV4Cg

In the video, he also mentions what the government is trying to do:
- raising wages
- encouraging women to work to increase family income
- welfare reform to cope with aging society

now I am not sure if it will drop below 60 sen or even 50 sen or not. No eye see...

Looks like its share price will stay below 80 sen for some time

too bad it does not drop as severe as others

Enovix Announces Second Quarter 2024 Financial Results
ir.enovix.com/news-releases/news-release-details/enovix-announces-second-quarter-2024-financial-results

some good information there

one problem is its IPO 90 sen at P/E 31.6. Now it is at 71 sen and P/E 14.29.
Reasonable.

Copied from the article above

Profit-after-tax growth will likely be partly affected by the increase in cost and expenses in the financial year ending Dec 31, 2024 (FY2024)

Still, revenue is expected to continue to increase “strongly” this year and in 2025, on orders from new and existing customers... their customers are all in very positive” industries, such as green energy and data centres with strong growth.

Technically it may look bad, but fundamentally it is more than just fine. Good luck!

at this price level slightly below 60 sen, it is still good profit for those who successfully subscribe to this IPO. Good luck!

Possible like FEYTECH

It does not feel like there is any intention to push up this stock, so it may drop below 90 sen.

its volume is now a lot smaller than the previous 2 weeks. Also there are 3 IPO listed next week. I guess it is the time to sell?

dragon328, thank you for your article. No wonder EPF keeps buying this stock and analysts are bullish.

at each price level, there are only a few hundred or thousand lots queuing. Must be easy to push up and down

yea, this type of stock will not perform like the previous IPO stocks like UUE, GoHub, OFB. Boring sector. It is better to sell and buy other stocks. Or subscribe to upcoming IPOs

revenue
FY20 48.8 mil,
FY21 64 mil,
FY22 139.1 mil,
FY23 98.3 mil,
1HFY24 42.1 mil

current price seems to be way overbought

3 straight amazing IPOs! Congratulations to those who are able to subscribe to this IPO!

EPS Q1FY24 = 1.55 sen based on 160,096,000 shares

1.18 sen if based on enlarged 210,146,000 shares

Gohub will be the spotlight today. Congratulations to those who are able to subscribe to this IPO.

we may not even get it at 60 sen.... sien

stevenckheng, keep trying, you will be able to subscribe to IPO one day. I managed to get 2 IPO last year. So far only 1 IPO this year

well, I suggest you guys to buy when it stop dropping. It is in the right sector...

too bad... I was hoping it would not go up too high, around 30-40 sen.

AmInvestment starts coverage on Feytech with fair value of RM1.32
https://theedgemalaysia.com/node/716080

During the last few days, I was able to find some youtube about FEYTECH. Here are the videos:

Rakuten Trade Ideas Webinar - Feytech Holdings Berhad
https://www.youtube.com/watch?v=0bVs8sMW674

新股上市IPO系列之管理层专访 | FEYTECH
https://www.youtube.com/watch?v=DgbnGyHGt2M

烤問飛達控股｜ CEO 吳柯妮：從上市到全球市場的征途
https://www.youtube.com/watch?v=QYyAdg13N3s

This company already warns that the initial set up cost and marketing cost are high for new clinics and new clinics may require time to attain the patient volume needed for optimal financial outcomes. A few new outlets were opened during February-April 2024.

Therefore, I am afraid this company will remain unprofitable for some time. It has been unprofitable for 3 straight quarters.

According to its IPO prospectus:

3.13 DIVIDEND POLICY
Our Board intends to recommend and distribute dividends of at least 40% of our net profits attributable to the owners of our Company for each financial year.

DC HEALTHCARE GROUP SDN. BERHAD (a substantial shareholder) disposed 28,000,000 shares at 0.200 on 28-May-2024.

DC HEALTHCARE GROUP SDN. BERHAD (a substantial shareholder) disposed 47,872,700 shares at 0.200 on 31-May-2024.

Disposal of ordinary shares by via off market transactions

I am afraid some investors will follow and sell...

There is a blog explaining the unrecognized revenue

The Truth Behind DC Healthcare Results!!
https://klse.i3investor.com/web/blog/detail/faizaleyes/2024-05-27-story-h-160716431-The_Truth_Behind_DC_Healthcare_Results

Contract liabilities

There are 2 Contract liabilities figures in quarterly report. The figure 9,591(000) in the balance sheet as at 31.03.2024 must have included unrecognized revenue in the last quarter and also quarters before that.
as at 31.12.2023 3,709 (000)
as at 31.03.2024 9,591(000)
there is an increase of 5882 (000) from Q4FY2023 to Q1FY2024

This Contract liabilities figure of 5,882 (000) found in the cash flow statement for the first quarter ended 31.03.2024 is the unrecognized revenue generated in the last quarter ALONE.

for Q1FY2024:
total sales = revenue 9,454 (000) + Contract liabilities 5,882 (000) = 15336 (000)

not too bad. This figure is lower than last year Q1FY2023

for Q1FY2023
total sales = revenue 16,811 (000) + Contract liabilities 68 (000) = 16879 (000)

@mudaBubu
is there a way to find out the amount of money customers brought in in the previous quarter (3 months):
amount of money customers brought in and redeemed
amount of money customers brought in and not yet redeemed

we can add these 2 figures to know the amount of money customers brought in

or is there any figure that will help us to know how much revenue (recognized and unrecognized) is generated in previous 3 months.

Thank you in advance!

profit was expected to be lower because of the costs of new outlets and marketing cost. Anyway, revenue was down 44%, now that's a different story. It's horrible!

revenue was down 44% , "mainly due to the lower redemption rate in aesthetic services."

not sure what it means... totally unexpected

the latest QR, net profit 16,882,000

EPS 2.41 sen is based on weighted average number of shares of 699,875,000

EPS 2 sen based on enlarged number of shares of 843.200,000 after IPO.

did not expect it to drop so much...

It is not a disappointing quarterly report for me. Wessex and YES 5G keep disappointing me quarter after quarter that I kind of expect this trend will continue until proven otherwise. The revenue of Wessex increased in last quarter, but net profit was affected by high depreciation. I am more confident about Wessex. YES 5G, well... not so much. Investment is all about future earnings. It is exciting time being YTLPOWER investors.

good results. Already up 3 days, you know Malaysians, it will not surprise me if people sell on news.

as expected, revenue and profit further improve. Last quarter, revenue was 9.3 mil. Its revenue must exceed 10 mil in order to have a profit.

There are some positives:
- the recovery of semiconductor industry is making progress
- new products into the Enterprise Storage market.
- Rest of World sales region (excluding China) grew 53% quarter-over-quarter (q-o-q). Several orders and deliveries were delayed, but not cancelled.

Although China sales is expected to slow in Q3 2024, management is preparing for growth q-o-q. Management is positive but I am going to be conservative and expect revenue and profit to be lower q-o-q. I hope I am wrong. The prospects given by management in previous 2 quarterly report become true. I hope they are right again.

Year-over-year, it should be easy.

Last year figures:
Q3 2023 revenue 3.8 mil, EPS -1.03 sen
Q4 2023 revenue 6.1 mil, EPS -5.73 sen

The figures are low so we should see improvement year-over year for the next 2 quarters Q3 & Q4 2024.

The annual report was out on April 30th, 2024.

Regarding expansion, management noted that:

Opening new clinics generally entails significant initial costs, such as leasing of properties, obtaining medical equipment, recruiting, hiring, training of medical and support staff. Such initial set up costs for new clinics can be a considerable expense before these facilities reach their full operating potential. These expenditures contribute to the challenge of achieving optimal financial performance until the new facilities reach full operational capacity.

... Additionally, the launch of new clinics necessitates robust marketing campaigns to establish a presence in new markets, impacting short-term financial performance. It’s important to note that new clinics may require time to attain the patient volume needed for optimal financial outcomes, leading to thinner margins during the initial phase.