There is pending litigation for patent infringement against the company in the US. Looks like they will lose the case and have to pay damages which will result in negative QR for next quarter. Read the last QR for more info. The directors already started selling last week.
JF Technology Bhd believes it will prevail in a pending patent infringement case with US-based Johnstech International Corp.
JF Tech also argued that US patent laws do not apply outside the United States, and that the manufacture, use, sale and offering for sale of its Zigma (pic) products outside the United States are not affected by this case.
Jftech for FY 2017 ended 30 June, reported a turnover of RM24.7 million and a profit before tax of RM6.964 million and a profit after tax of RM 6.379 million. The EPS for the year was 5.06 Sen and the latest Q4 EPS was 1.72 Sen. At current share price of RM2.06, it has a market capitalisation of RM 253 million. For a company having a net profit of RM6.379 and the market is valuing it at RM253 million. My opinion it is grossly overvalued. If you have a sober mind, would you buy such small Co, Jftech for RM253 million and wait 39.7 years to get back the amount you paid for your investment in the Co assuming there is no growth in net profit on the extreme pessimistic stand. Ask yourself, is Jftech a world leader in its field of business (with no competitors around) with superior technology advancement or advancement in its field of business for market to give it a valuation of PE 39.7. Further below, I would compared it with FoundPac. Will Warren Buffet or any prominent private like Navis Capital or The Blackstone Group or other re-owned international fund buy Jftech at this valuation? My answer is no for any astute investors who is worth his salt. Why pay so high for the future and it is not proven yet. Owner and key directors had sold 4.055 million share ranging from 1.44 to 210 from 1 June to 6 Oct. See my list attached. If stakeholders are selling, it must reached their fair value. Why then should we hold I have look at the list of substantial shareholders in the Annual Report for 2016 and 2017. There was no institution shareholder in 2016. However in 2017, the institutions shareholders were Kenanga Growth Fund (2 mil shares) and Philip Capital (610 shares). There are no other big name. I do not know both institution entry price. I can only said prior to 3 April, the share price was 88 Sen and below. Subsequently it went up all the way till now at 2.06 with frenzy goreng. Comparing to FoundPac for FY 2017 ended 30 June, FPG reported a turnover of RM40.0 million (Jftechfast=RM24.7 million) and a profit before tax of RM13.0 million (Jftech =RM7.0 million) and a profit after tax of RM 10.22(Jftech =RM 6.379 million). FPG EPS for the year was 2.92 Sen (Jftech = 5.06 Sen) and FGPe latest Q4 EPS was 0.8 Sen (Jftech=1.72 Sen). Jftech figure in bracket.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
chinteikong
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Posted by chinteikong > 2017-07-11 21:46 | Report Abuse
good luck turbochart