cloud business in general has always been negative in profit, even alibaba and snowflake been losing money alot and if not wrong alibaba recently had a positive net profit after long long time. Hybrid cloud had always been the more popular choice than private and public cloud. So, hardware sales is definitely needed to support hybrid.
One of the factor that affect krono last quarter low profit margin (not considering asset impairment) was krono were trying to help their existing customer weathering through the covid crisis, trade war and politic being the most serious during 2020Q1 & 2021 Q1.
There is growing demand for cloud computing as Work from home is the norm, big player such as Microsoft and Amazon had been getting huge surge in profit in their latest report.
I would say Covid-19 is a double edge sword for Krono due to Krono focus on the mid and lower tier market such as SME and SME been getting a whole lot of impact by the virus and force to shut down. However, this also bring new opportunity to for krono to expand their customer base.
There would be another acquisition i believe in the future in either Malaysia, Philippines or India Market as the company recently clear some of their debt and now they have more margin for debt to fund their future acquisition along with private placement (of course this is a speculation by me since im holding their shares and i do hope they buy up some good company la)
FYI, the director salary in comparison with other directors in similar sector is comparably lower. 30/10/2020 9:58 PM
Stock: [KRONO]: KRONOLOGI ASIA BERHAD
2020-10-30 22:15 | Report Abuse
cloud business in general has always been negative in profit, even alibaba and snowflake been losing money alot and if not wrong alibaba recently had a positive net profit after long long time. Hybrid cloud had always been the more popular choice than private and public cloud. So, hardware sales is definitely needed to support hybrid.
One of the factor that affect krono last quarter low profit margin (not considering asset impairment) was krono were trying to help their existing customer weathering through the covid crisis, trade war and politic being the most serious during 2020Q1 & 2021 Q1.
“In 2019, there wasn’t any project that was impacted. However, we did face margin stress due to the allocation of tighter budgets from customers as they have had to spend elsewhere to handle the [impacts arising from the] trade war or protests, and now, the virus outbreak." Tay
Source: https://www.theedgemarkets.com/article/kronologi-asia-reports-stronger-fy19-sees-opportunities-amid-external-headwinds
There is growing demand for cloud computing as Work from home is the norm, big player such as Microsoft and Amazon had been getting huge surge in profit in their latest report.
I would say Covid-19 is a double edge sword for Krono due to Krono focus on the mid and lower tier market such as SME and SME been getting a whole lot of impact by the virus and force to shut down. However, this also bring new opportunity to for krono to expand their customer base.
There would be another acquisition i believe in the future in either Malaysia, Philippines or India Market as the company recently clear some of their debt and now they have more margin for debt to fund their future acquisition along with private placement (of course this is a speculation by me since im holding their shares and i do hope they buy up some good company la)
FYI, the director salary in comparison with other directors in similar sector is comparably lower.
30/10/2020 9:58 PM