EMS raw material mostly from rubber and metal, which both has gone up quite significantly in this year. And KPS EMS profit margin is exceptional thin compare to SKPRES and VS because SKPRES n VS are EMS for high end and well known product while KPS EMS client are small flies low end product.
Not sure if they can fully pass on the cost. The client will also want to manage their cost. Hence, they will nd to absorb some of it and lead to margin compression. Now the most worrying is the labor. There is shortage of labor in all industries cum with increase of min wages. Finally us the manufacturing plant in china. Can't remember where it is located but Shanghai is having a full lock down. Many semicon factory shutdown. Now heard Beijing is also facing the same.
"Toyoplas has three manufacturing plants located in China; Shanghai, Dongguan, and Nanning"
Found the above info in AR. Shanghai is already in the lockdown for the past 17 days and no sight of light at the end of the tunnel. Dongguan also facing the same and many factories were asked to shut down. Not sure about Nanning but I think it will be the same fate even if the open, raw material will be a challenge as logistic has shut down as well. China plant contribute 160M out of 420M of yearly revenue. It is about 40% and is a significant contribution. Prolong shutdown will definitely affect the revenue as manufacturing is top KPS's revenue contributors
when shanghai reopen back price will up lo due to strong demand. unless you are telling us shanghai gonna to close until end of the year. I think likely it will gradually reopen next month aldy.
base on the news above, the three listed Co selling their stake for their highway concession. KPS will be the one benefit the most as no big impact to their existing Biz and profit yet they can have huge cash on hand with realised 100% profit return
KPS is under very heavy selling pressure, about to break below the gap up price of 78c soon. Better sell if 0.78 is broken ! Insider is selling heavily ahead of bad news.
base on my experience, after heavy transaction at open market (very obvious done by the proxy account of the owner), normally will follow by crazy sell down very soon. We shall see
I will be interested if it starts to drop below 70c. Sorry as I'm not here to curse the stock. Just that like to buy on discount. but will still wait for the coming AR.
Trust 50% of what people say. Only then you are wise. Don’t fight with people here. Life is too short. Enjoy your life time on earth is more important than fighting people here??? Thanks for your sharing here.
The price consolidation last week was to shake out the weak retailers. It is only a matter of time before price climbs beyond 80 sen and march towards 90 sen. Have faith.
TheContrarian The price consolidation last week was to shake out the weak retailers. It is only a matter of time before price climbs beyond 80 sen and march towards 90 sen. Have faith. 12 hours ago
At current price of 79 sen KPS is a bargain for an above average dividend yield share (4.5 sen annually) with low P/E ratio and huge NTA safety margin.
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....
roger3210
5,151 posts
Posted by roger3210 > 2022-04-13 16:48 | Report Abuse
better wait after bad QR release next month