Foxconn says Thailand EV factory will begin producing 50,000 units by 2023
Taiwan-based smartphone manufacturing giant Foxconn and national Thailand oil supplier PTT PLC are moving forward with an agreement to start an electric vehicle manufacturing facility in Thailand. The facility is expected to begin rolling out vehicles by 2023.
Kedah is very near to Thailand, so you can easily guess what foxconn is up to buy the DNEX. Long term contract will be announced soon for Silterra to supply chips to the Thailand EV Factory
Expecting another surprise announcement/news within one week (my speculation based on certain factors). The last time I expected it, the macc news came out.
Key points from DNeX's recently announced results + future prospects:
i. Key points from Q4 results announcement: - Based on the Purchase Price Allocation exercise performed on 60%-Ping acquisition, DNeX's consolidated 90%-share of the effects on business combination is RM273mil. This can be simply interpreted as the excess of fair values of Ping's inventories (oil) and assets (oil rig's and oil rights) over the price paid for the 60% stake. - SilTerra's results is not consolidated yet as the acquisition is deemed completed only in July 2021 (refer announcement to Bursa).
Questions many may ask: - The effects of business combination is only accounting, not real cash. Why is it good?
Answer: - While yes, the effects of business combination is only accounting, but it also means that Ping will be realising these oil inventories in the next few quarters at a higher fair value. Realising these oil inventories at higher value also means higher profit contribution from Ping to DNeX.
Note that the valuation of fair value of Ping's oil inventories are done by professional accountants/experts. In valuing these oil inventories, the factor considered is the net realizable value, which is the price Ping is able to fetch if they sold the oil inventories.
So the answer is - Yes this latest quarter result is good, because it proved to investors that Ping will be able to sell oil inventories at a higher price in the next few quarters, which translates to higher Profit.
Note that Foxconn and PTT are in advanced negotiation stages on the production/manufacturing of EV's.
Foxconn's head honcho had mentioned in an interview to Taiwan reporters that they will be tapping into SilTerra and Macronix on the supply of 8 inch wafers, which is semiconductor chips mainly used in EV.
The contribution of business combination from Ping has been realised in Q4 - could only be good if the next Q1 can achieve better result. Otherwise the effect may be opposite. The pressure to perform is going to be increasing especially when institutions are demanding dividend.
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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....
Tesla888
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Posted by Tesla888 > 2021-09-28 11:11 | Report Abuse
Look at MPI, UNISEM share price. Both already near their record high. Only Dnex still got huge upside.