Thanks for the article Icon. Just a note, SAM's profit will not jump suddenly because they have completed the new factory. That is because the delivery of the engine casing is catered to the production schedule of the customer. There's no point making hundreds of engine casing when your customer is making only tens of aircraft per year. The contract for engine casing are multi decade contracts for specific no of deliveries per year, and there's no point delivering more than what the customer needs. In short, SAM needs to secure new parts to boost it's profit. With the additional capacity, yes things are looking up indeed that they can secure more parts. Their profit may increase somewhat, but won't suddenly see a massive jump just because they have completed the new factory. Stockmanny, you need to go back in history and understand how LKT became SAM. LKT was initially a precision engineering and semicon equipment manufacturer before its present owner bought it over and transform it into an aircraft parts manufacturer. That's why it is listed in Malaysia, because LKT was listed in Malaysia.
Thanks for your comments. I believe the pace will be faster than what you describe below. As far as earning is concerned, I am guided by managements August 2016 presentation which expects aerospace revenue to increase to RM800 mil by FYE March 2020 (which is essentially calendar year 2019).
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soojinhou Thanks for the article Icon. Just a note, SAM's profit will not jump suddenly because they have completed the new factory. That is because the delivery of the engine casing is catered to the production schedule of the customer. There's no point making hundreds of engine casing when your customer is making only tens of aircraft per year. The contract for engine casing are multi decade contracts for specific no of deliveries per year, and there's no point delivering more than what the customer needs. In short, SAM needs to secure new parts to boost it's profit. With the additional capacity, yes things are looking up indeed that they can secure more parts. Their profit may increase somewhat, but won't suddenly see a massive jump just because they have completed the new factory. Stockmanny, you need to go back in history and understand how LKT became SAM. LKT was initially a precision engineering and semicon equipment manufacturer before its present owner bought it over and transform it into an aircraft parts manufacturer. That's why it is listed in Malaysia, because LKT was listed in Malaysia. 19/02/2017 14:04
i am a great believer in Icon8888! becos of him, i made big monie in Kesm!!! certainly i will consider this counter again, i still have some shares here!!!!
dont just believe la...he presented facts ma...scrutinize the facts (but treasure them)..we want a fact-based culture in i3...not 'believe-based'...or 'sifu-based'...
thanks for sharing Icon...hmm...its getting harder to find gems.
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Posted by VenFx > 2017-02-19 11:55 | Report Abuse
Thx icon8888 bro for ghis Aerospace Electronic specialist. (Sam)