@dragon328

I'm posting the key message of the entire news.

Most of us here believe that Data Centre demand is very high.

From this article, we can tell that it's not the case and YTLpower is building first , then look for prospective customers.

Most of the time, it will be having a orderbook and backlog of demand, then plan to build.

Just highlighting the facts for everyone's reference.

No takers for the remaining 16MW data centre phase.

Is this sign of oversupply?

https://theedgemalaysia.com/node/737795

Actually, there's a smaller glovemaker in Malaysia that is more profitable than Harta, Topglove and Kossan combined.
Yes, you heard it right- COMBINED

The company is called Riverstone, listed in Singapore stock exchange.

I believe for private hospitals they can charge whatever the company sees fit.
Nothing much to complain.
At the end of the day, customers can decide which hospitals to visit.
There's always an option for government hospital with subsidized healthcare for those who cannot afford private hospitals.

@calvintaneng

I hope you do know in Msia there's hundreds or even thousand of companies like Transgrid tendering for the RM90 billion job.
And I believe you also know that there's a familiar culture in Msia to award jobs to bumiputera companies and all it's related 'family', 'extended family', 'friends' and even 'extended friends'.
Go figure.

@calvintaneng
Are you hoping the company will announce some project winnings related to Data Centre or AI, or 5G ??

Referring to my comment on 16-July 2024.

The company will continue to experience competition from China manufacturers who can continue to slash prices and lower cost. This would be unfavorable to D&O operating in Malaysia with increase foreign worker minimum wage increase every few years by Madani gov and higher natural gas price adjustment every year will cause profit margin compression.

In other words, eventually it will not be automotive lighting biz will no longer be profitable as before.

China manufacturers can always adopt and copy high tech lighting and produce it at lower cost as this is unlike producing high tech nodes like the 3NM 5NM for smart devices by TSMC.

Is the new shareholder the same as this guy?

https://www.malaysianow.com/news/2021/04/23/businessman-accused-of-assaulting-bodyguards-slapped-with-fresh-charges

or

https://thesun.my/malaysia-news/7-charged-with-owning-luxury-cars-from-illegal-gambling-proceeds-FF9070513

@mylo
Uchi had been around a long time since China and Taiwan conflict.
It's very unlikely that China will invade Taiwan , unless it wants to destroy China economy indirectly.
I don't see any concern since the manufacturing plant are in Malaysia and China.
None in Taiwan.

The 1Bestarinet project was awarded legally by the gov in 2011 and completed in 2019.
Any idea why MACC is investigating the YTLpowr?

Gamuda made good call to offload highway infrastructure in its portfolio a few years back.
This allows better cashflow management and flexible to expand it's order book globally.

Actually, there's a smaller glovemaker in Malaysia that is more profitable than Harta, Topglove,etc.
The company is called Riverstone, listed in Singapore stock exchange.

IB analyst are saying that the 11% drop in USD strength against the MYR is reducing the profitability of tech companies which are export oriented.
According to AR 2023, 89% of Dufu revenue is USD.
This is something of concern.
Any comments?

Historically, YTLPOWR yields around 5% annually.

For financial year end 2024, its EPS is 42 cent.

Based on 5% yield, dividend of 17 cent should be payout.

However, the company only 7 cent and it's disappointing.

But KPMG did resign as external audit.
I believe many investors whether retail or institutional won't be waiting to know the official reason of their resignation, else it would be too late if the company indeed has some accounting issues.

Hopefully, the company has plans to setup solar as a renewal energy for the high demand of Data Centre in Johor.
Especially for those lands with older trees above 22 years old with less yield.
Replanting and waiting for the trees to mature takes 1 decade as compared with solar setup and yield per acre.
It would make sense for JPG to to diversify 10% of their land with old trees to do that.

https://theedgemalaysia.com/node/714041

The sharp increase in Glove stocks is merely a kneejerk reaction to the USTR tariff news.

In my opinion the decision from USTR comes from the consult with the current president of US.

There's uncertainty whether this glove tariff still holds once a new US president coming onboard in Nov 2024.

@Nepo,

According to the article "MFCB is also reportedly close to securing a piece of commercial land in Setia Alam for the construction of a hospital"

Seems the company is looking for other revenue source as the company revenue stays sideways since end 2022.

I had commented long ago when it was above rm2.50 but very few ppl takes time to study and notice the issue with this company.
Hope they learn not to criticize but listen and do their own analysis.
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Stock: [GENETEC]: GENETEC TECHNOLOGY BERHAD

2022-01-13 09:30 | Report Abuse

@Loh Kok Wai W

Do take a step back and analyse what you commented.

Glove is a long term need for major healthcare industry. The fact that it has a massive rally last year is due a ONE OFF pandemic effects and this type of pandemic of this magnitude is once in 100 years.
Thereafter, it will fall back as demand reduces + spot prices not required and ASP drops back to pre-pandemic level.

Tech on the other hand depends on the company's innovation and technical know how. Many tech companies do fail if they do not innovate and the tech growth into more complex offerings for customers.

Can't really say much about Genetec as it's massive really is merely a EV theme play. For Genetec to continue to stay at this price and grow, will really depends on the orderbook that EV and car manufacturers looking for EV factory automation line assembly equipments. So far, not replenishment of order book since June 2021, high probability, this counter may be just another fad.

Revenue grew 4x but profit grew only 2x.
You will ask why:
Firstly, take notice of the huge receivables that grew 2x which means customers are not paying up.
Secondly, cashflow becomes an issue and this cause them to borrow where borrowings grew more than 3x.
Thirdly, their current expansion increase topline but failed to translate into bottomline, likely performing low value manufacturing job.
Fourthly, just only less than 1.5 years after raising money from IPO, the company did private placement in Jul 2024. Likely reflecting that their current biz is not generating sufficient cashflow to grow or the manufacturing is just doing low value contracts.
Fifth, the dividend growth does not commensurate with it's topline growth due to low margin biz.

What's your take in this company for next few quarters?

Quarterly result had been a disappointment for 4 straight quarters including the current quarter today.

In my opinion, the AI and data centre trade is good for dufu.
Like someone pointed out earlier, there’s potential recession looming globally.
It’s expected for the hyper scalers to reduce their capex during the bad times.
Depends on how you want to play this trade.

The best profit since listing, though it could be much better.
It manages profit of rm46 mil in Q12021

Someone got trapped buying at higher price?
Need you guys to bail out at RM2.70 and above.

Based on TheEdge paper on 10-Aug 2024, analyst and fund manager went to site visit and was shocked by the condition of the factories. It was noted that the factories was not expected of a full fledged EMS rather it was setup as basic contact manufacturer. Read more......

The company earnings in last few quarters is worst than when it was listed in 2021.

Understand from the company website it's manufacturing electronic cigarettes.
So it's non- shariah counter right?

@hng33

Based on your feedback, since Seagate Q4(Apr-June) revenues rose 25% Y-o-Y, we should expect Dufu Q2 (Apr-June) revenues to grow at least 20% Y-o-Y.

Is this what you're implying?

@willsmith

Yes, you're right. The company is not in the high end tech sector like chip design or manufacturing.
Their annual capex is less than RM10mil, thus low spending but high free cash flow to reward shareholder.

Everyone is waiting for the data centre play.
Unfortunately, before hard disk can be purchase and fitted into the physical building, it may easily take 2-3 years for the main building, such as critical infrastructure (eg:power transmission, cooling system, network, certification,etc).

Nationgate to place out shares priced nearly six times that of IPO, raising RM429m
https://theedgemalaysia.com/node/720237

It's weird that the company revenue and net profit is much lower when it was first listed on Q3 2022.
Share price had run ahead of fundamentals and the company is raising private placement just 19 months after IPO

@willsmith

The company annual EPS=29.65c for 2023
Dividend declared DPS= 29.5c for 2023

What is not correct here?

The company generates free cash flow of more than RM30 million in 2023, and retained earnings of almost RM110million.

This means that the company could even declare additional special dividend DPS of 20c on top of the 30c

Vitrox machine vision system is helping to reduce defects for specific component by the tech manufacturer.
The question here if companies such as TSMC with extreme low defects per product manufactured allowable, will this means there is little value for Vitrox products?
Any feedbacks or comments?

Actually I believe China tech is able to manufacture vehicle LED lighting at much cheaper cost than D&O.
Despite that, the lighting biz is not as complex as producing 5nm chip and can be easily adopted by chinese high tech players.
Do comment and share some feedback.

@Jeferson

Nvidia already have extremely good results for 5 consecutive quarters.
Why then it's not reflected in Natgate's revenue and profit ?

@s3phiroth
Thanks for the update.
So means Q2 will be another bad quarter.

One thing that I can't figure out is why the current quarter revenue and earnings are even lower than when Nationgate first listed on Bursa.
Referencing to 2022-09-30 quarter result

Final dividend out end of this month.
Cheers for everyone enjoying this long journey together.

A company with good talent but no products to sell and relying on services of their employee skill sets.
With talent war on going among tech companies, escalation of labor cost as main concern of lower profit margin.

https://theedgemalaysia.com/node/712541
Mega First Corp Bhd (KL:MFCB), which is involved in renewable energy sales, limestone quarrying and packaging, said its first quarter net profit rose 35.32% to RM95.46 million from RM70.55 million a year earlier amid a significant improvement at its resource division.

The higher earnings were also attributed to a one-time boost from fire insurance compensation. The group said it recognised RM22.39 million in insurance income for the fire incident in its flexible plastic packaging factory.

Q1 2024 revenue is at more than 20-year low going back more than 20 years ago.
Q1 net profit is also at more than 20-year low, going back to 2002.

@paktua73,
Look at what kind of hiring in the company.
https://www.kjts.com.my/site/career

@paktua73,

From the company website, it's a company providing cooling service aka aircond service to buildings and cleaning service for corporate clients.
Don't see it as a high tech biz rather a facility service and building maintenance company.

The company is experiencing cashflow issues due to high expenses that eats into their profit.
Adding to it, lower demand for the company products.
The company is streamlining its acquisition into medical and renewables products hoping to buck the slowing demand in other areas eg: semicon, e&e, automation tools ,etc

It's been awhile since their China operation kick started.
Seems not much news on their China plant utilization.
If anyone has any updates, please share.

Anyone drove using Duke3 highway recently.
It seems volume of traffic still low.

According to company website, Dufu specializes in manufacturing precision machining parts and components primarily in HDD-hard disk drive component.
Thus, graphic cards are not related to it's biz.

However, more data centres built in the country would require more components for HDD.
This will have limited effects on Dufu revenue and earnings coming from a low base since 2022-2023.
At best, recoveries back to 2020-2021 revenues and earnings, then it should normalise back as there's only less than 10 data centres to be built from 2023-2030 as published in the news.

Hi all, notice there's many comments here for YTL Power.
With all the hype of the news that the company is spending more than USD1billion in NVIDIA chips to build data centres in the country.

Would like to know after the data centres are completed between 2026-2030, who are the customers that will buy the services to use the GEN AI services?

Any ideas when to breakeven the capex spent of more than USD1billion?

Crude oil is surging to new high this year at close to USD90 per barrel.
This is not a good sign for airlines which takes up about 30% of the total capex.
Profitability will be a concern moving forward.

So sad to see the orderbook remains at rm120million for so many months.
Need to revamp new leadership in UWC to bring the company to new level.