Why do you believe somone who made a forecast based on a net profit margin of 3.2% lower than a fixed deposit rate at a Malaysian bank?

Analysts'TPs are based on the unrealistic net profit margin. But it will go up easily. I don't believe any analysts. They told us that in the beginning of 2018, Kesm was a good buy and now lowered its TPs beased on the unrealistic net profit margin. They are jokes!

The stock is a very good buy on this pice level because it is unrealistic for its net profit to continue on this level and the price to book ration is close to 1.00.

A Net profit margin of 3.2% is not worth business because you can get a higher interest rate when you deposit money in a Malaysian bank in a fixed duration. 3.2% is a multi-year low. Don't expect its net profit margin will stay so low. It will double or triple easily. If a net profit margin stays so low, the management should get replaced

Price to book ratio is 1.06.

P/E Ratio12.49
Bloomberg (BEst) P/E Ratio8.0948
Bloomberg (BEst) PEG Ratio--
Shares Outstanding43.01M
Price to Book Ratio1.0611
Price to Sales Ratio1.1214
1 Year Return-56.03%
30 Day Avg Volume165,110
EPS0.71
Bloomberg (BEst) EPS Curr Yr1.0970
Dividend2.08%
Last Dividend Reported0.06
Earnings Announcement for Period Ending Q1/2019:03/08/2019
https://www.bloomberg.com/quote/KESM:MK

Plus the price to book ration is near 1

The stock is a good buy at the current price because the very low net profit margin is likely be temoral.

But Kesm's revenue is still high, so there is a hope that its net profit will go up eventually in the future.

They can seek European and Japanese customers aggressively.

If they find new customers, its net profit will go up easily. Don't just wait for wafer utilization rate to go up.

Kesm should seek more new customers.

https://klse.i3investor.com/m/blog/kianweiaritcles/182937.jsp

Price to Book Ratio 1.2619

P/E Ratio14.85
Bloomberg (BEst) P/E Ratio9.6263
Bloomberg (BEst) PEG Ratio--
Shares Outstanding43.01M
Price to Book Ratio1.2619
Price to Sales Ratio1.3335
1 Year Return-47.04%
30 Day Avg Volume164,670
EPS0.71
Bloomberg (BEst) EPS Curr Yr1.0970
Dividend1.75%
Last Dividend Reported0.06

Earnings Announcement for Period Ending Q1/2019:11/22/2018
https://www.bloomberg.com/quote/KESM:MK

I will not sell Kesm. Its revenue is still high. Its net profit can recover with an improving net profit margin.

KESM Industries Bhd will be looking to upgrade its existing plants in Kuala Lumpur and China into “smart factories”, with the aim to produce higher quality products for the automotive industry.

KESM CEO Samuel Lim Syn Soo (picture) said the group will be shifting its focus to enhance the smart factories, where they will be able to test more complex semiconductors.

Remember Kesm did not drop much after the QR announcement of FY2018Q3? Kesm is likely to plunge if the next QR announcement is not good.

Cash and short-term deposits improved by 4% or RM7.9 million, from RM177.6 million to RM185.5
million, which represented the net surplus cash generated from operations.

20. Prospects

Although material supplies for our burn-in and test services are temporarily impacted, the Board
believes that the Group will emerge more resilient and streamlined to support our customers’ plans
to adjust their production plans.

Don't be stupid. It's revenue was on the same level as FY2017. Only its net profit margin was extremely low. It's actually a multi-year low. But it is easy to go up in the next QR announcement.

Its revenue was still high. Only its net profit margin was extremely low. Kesm has not losing its customers.

Remember Kesm did not drop much after the QR announcement of FY2018Q3? Kesm is likely to plunge if the next QR announcement is not good.

Net profit margin of 3.24% is very low. It's a multi-year low.

It;s easy for the net profit margin to go up.

Its revenue was not bad. In FY 2014 we saw this type of fluctuation of profits.

The outlook of automotive semiconductor is still very good.

Kesm plunged from around 23,00, so room for dropping is limited. Even MMSV did not plunge, Stock price are determined by their outlook in about 6 months.

Just wait for analysts reports.

Pentamaster International Ltd
https://www.bloomberg.com/quote/1665:HK

March, 2018 1.40
Now 0.98

EMPLOYEES PROVIDENT FUND BOARD (a substantial shareholder) disposed 2,500,000 shares on 15-Nov-2018.

Goldman slashes Apple price forecast, sees stock going nowhere for a year

https://www.cnbc.com/2018/11/20/goldman-slashes-apple-price-forecast-sees-stock-going-nowhere.html

Price to Book Ratio 5.1752

P/E Ratio24.33
Bloomberg (BEst) P/E Ratio21.8750
Bloomberg (BEst) PEG Ratio--
Shares Outstanding3.17B
Price to Book Ratio5.1752
Price to Sales Ratio4.3797
1 Year Return-6.65%
30 Day Avg Volume12,473,500
EPS0.07
Bloomberg (BEst) EPS Curr Yr0.0960
Dividend3.66%
Last Dividend Reported0.016
Earnings Announcement for Period Ending Q4/2018:11/21/2018
https://www.bloomberg.com/quote/INRI:MK

1.6 on Tuesday!

Kesm is better. automotive semiconductor stock

Apple cuts production orders for all three new iPhone models: WSJ
Read more at https://www.channelnewsasia.com/news/technology/apple-cuts-production-orders-for-all-three-new-iphone-models--wsj-10946910

Apple has plunged.

TP 1,00

Wow, Apple has plunged.

Wall Street hit by Apple slide, trade woes
Read more at https://www.channelnewsasia.com/news/business/wall-street-hit-by-apple-slide--trade-woes-10947456

The Phlx semiconductor index was up 3.34% on Thursday.
It was down 1,17% on Friday. It is not bearish. On Friday Investors sold Kesm with a forecast of a decline of Phlx semiconductor index on Friday due to the Nvidia QR.

Fears of peak iPhone rattle Asian Apple suppliers
https://menafn.com/1097710410/Fears-of-peak-iPhone-rattle-Asian-Apple-suppliers

KWAP sold some Kesm shares this month, but they sold Inari and Pentamaster shares as well.

Third Quarter Silicon Wafer Shipments Increase, Set New Quarterly Record

Milpitas, Calif. — November 7, 2018 — Worldwide silicon wafer area shipments increased during the third quarter 2018, surpassing record second quarter 2018 area shipments to set another all-time high, according to the SEMI Silicon Manufacturers Group (SMG) in its quarterly analysis of the silicon wafer industry.
https://www.design-reuse.com/news/45111/q3-2018-silicon-wafer-shipments.html

Automotive semiconductor stocks are the best!!

https://globenewswire.com/news-release/2018/11/12/1649392/0/en/Global-automotive-semiconductor-market-is-expected-to-reach-67-5-billion-by-2023.html

CAGR of 13.1% from 2018 to 2023!!!


DALLAS, Nov. 12, 2018 (GLOBE NEWSWIRE) -- According to a new market report published by Lucintel, the future of the global automotive semiconductor market looks promising with opportunities for passenger cars, commercial, and electric vehicles. The global automotive semiconductor market is expected to reach an estimated $67.5 billion by 2023 with a CAGR of 13.1% from 2018 to 2023. The major growth drivers for this market are increasing vehicle production, increasing electronic content per vehicle, and growing demand for advanced vehicle safety and comfort systems.

Price to Book Ratio 1.2983

China has delivered a written response to US demands for wide-ranging trade reforms in a move that could trigger negotiations to bring an end to a withering trade war between the world's top economies. .

Hong Kong Stocks gain on China-U.S. trade hopes, Tencent upbeat earnings
https://www.business-standard.com/article/news-cm/hong-kong-stocks-gain-on-china-u-s-trade-hopes-tencent-upbeat-earnings-118111500629_1.html

China has delivered a written response to US demands for wide-ranging trade reforms in a move that could trigger negotiations to bring an end to a withering trade war between the world's top economies. .
https://www.business-standard.com/article/news-cm/hong-kong-stocks-gain-on-china-u-s-trade-hopes-tencent-upbeat-earnings-118111500629_1.html

Analysts are missing the mark on shares of Apple and FANG, Cramer says.
https://www.cnbc.com/2018/11/13/cramer-analysts-are-missing-the-mark-on-shares-of-apple-and-fang.html

“The bottom line? Do not be so quick to write off Facebook, Amazon, Netflix, Alphabet [and] Apple,” Cramer said. “The Fab Five may be out of favor right now ... but there’s a lot they could do to make a comeback. I know to bet against them right here, after this decline, ... seems maybe ill-advised. In fact, it might be right to actually start — yes, I’m going to whisper — buying them.”

Apple downgraded, more iPhone estimates cut as Street starts to turn on the stock
https://www.cnbc.com/2018/11/14/apple-gets-downgraded-more-iphone-estimates-cut.html

Investing: Positive outlook for tech sector, says Franklin Templeton | http://www.klsescreener.com/v2/news/view/456844

Indeed, based on the trailing 12-month price-earnings ratios (PERs), companies like KESM Industries Bhd, Globetronics Technology Bhd, D&O Green Technologies Bhd, Aemulus Holdings Bhd and Key Asic Bhd are considered cheap as they are trading below their two-year average.

Last Thursday, KESM was trading at 12.1 times PER compared with its two-year average of 16 times while Globetronics was valued at 20.2 times compared with its two-year average of 41.5 times. D&O was trading at 32.3 times PER compared with its two-year average of 34.2 times.
http://www.theedgemarkets.com/article/will-semiconductor-stocks-rally

Semiconductor Investors See Cause for Optimism After Recent Rout
https://www.bloomberg.com/news/articles/2018-11-13/semiconductor-investors-see-cause-for-optimism-after-recent-rout