Posted by Sardin > 2022-03-04 14:57 | Report Abuse

@Thirai, I think revenue growth came from Roland, Sony and increasing orders from other customers and maybe a new customer. I believe contribution from Wistron will increase tremendously in 2022.

Posted by Sardin > 2022-03-04 14:58 | Report Abuse

I'm expecting revenue and profit growth in 2022 to be 10% or more.

Posted by Thirai Thiraviam > 2022-03-04 16:58 | Report Abuse

@Sardin - Is FPI heavily reliant on foreign workers? We probably need to ask this question to FPI come next AGM. In its 2020 Annual Report, FPI talks a lot about automating and retraining staff, which is encouraging.

Posted by Thirai Thiraviam > 2022-03-04 17:11 | Report Abuse

Projections on speaker sales worldwide are rather rosy -- apparently the industry would grow above 16% CAGR. If FPI could maintain its market position, it would really create serious value for its shareholders.

Posted by cwc1981 > 2022-03-04 20:28 | Report Abuse

@sardin. If FPI able to maintain earning above 10 cents per share for coming quarter should be an exciting year for FPI again

Posted by Sardin > 2022-03-04 22:39 | Report Abuse

I think like many other EMS, FPI too is hiring both local and foreign workers but I do not know the ratio. To achieve a high degree of automation might not be realistic for complicated assembly because the product design is determined by customer and the design always change because of the need to produce new models every year. Also, due to pressure to complete product development in very limited time, a designer might not put as much effort to think of manufacturability of the design but to quickly finish the project. So I believe they still need lots of workers even though they could automate some of the processes. As for the business prospect, I agree with you that it is easy for the OEM to register double digit growth for smart audio and musical instrument section provided the OEM is attached to the right customer. FPI has been allowed to work full swing and achieving higher revenue in Q4 qoq and yet is still facing shortage of labour. If OT is able to solve the labor problem they wouldn't have mentioned this in the report. That means, order in 2022 should be considerably higher than 2021. And I believe Taiwanese's capability to solve problem.

Posted by cwc1981 > 2022-03-17 17:48 | Report Abuse

Boss ESOS

Posted by Samuel Chan > 2022-03-21 03:00 | Report Abuse

@Dhando company stock pile inventory for raw materials for coming shortage

Posted by Thirai Thiraviam > 2022-03-22 15:24 | Report Abuse

How many shares has FPI issued to its employees? So far, they have exercised upward of 5 mil shares, equivalent to 2% of the total, but it seems never ending. And, I don't think the employees are holding on to the shares.

Posted by Dhando > 2022-03-22 16:26 | Report Abuse

@Thirai Thiraviam. ~7.9M ESOS shares has been issued. Remaining 5.6M.

Posted by gemfinder > 2022-03-25 22:17 | Report Abuse

Quietly moving up

Posted by JKing > 2022-04-05 13:29 | Report Abuse

Fpi was working on 24/7 at their factory on strong order book and the start of the new product from the client that they secure last year. Expected good earning result in 1st quarter. This is supported with strong shipping of Sony sound panel in 1st qtr 22 vs 4th qtr 21. USD strengthening will benefit to offset some cost inflation in MYR. Therefore margin is not impacted while the new product secure has a better margin.

Posted by JKing > 2022-04-05 13:29 | Report Abuse

https://www.seair.co.in/us-import/e-formosa-prosonic-industries-bhd.aspx

Posted by JKing > 2022-04-05 13:32 | Report Abuse

Yamaha guitar is the new client secure

Posted by cwc1981 > 2022-04-05 14:26 | Report Abuse

Wah so geng chow

Posted by cwc1981 > 2022-04-05 14:32 | Report Abuse

Should be another exciting year ahead

Posted by gemfinder > 2022-04-05 20:15 | Report Abuse

Tomorow last day to buy b4 20sen div ex date

Posted by JKing > 2022-04-05 22:53 | Report Abuse

I am not sure where you get the info that fpi client is sonos. The management has mentioned in last year agm that sonos is not their client but it is their parent company client. However I am not sure whether Sonos is under the RPT with wistron. Sony sound bar and Yamaha catalyst box is the only 2 existing ODM product of fpi other is OEM therefore you will not see direct shipping by FPI. OEM include Ronald their main client and etc.

Posted by Moolala > 2022-04-11 12:51 | Report Abuse

Thanks for the info JKing

Posted by Thirai Thiraviam > 2022-04-11 21:01 | Report Abuse

I am expecting the counter to dip a further 10 to 15 cents, although my TP for it is RM4.10.

Posted by Dhando > 2022-04-12 10:22 | Report Abuse

FPI eps and revenue have been growing more than 20% per year for the past 5 years. Assuming the same growth rate next 5 years, my TP is based on PE reaching 16-18.

Posted by cwc1981 > 2022-04-12 18:13 | Report Abuse

PE 16 equal to RM 6.08. very good

Posted by donald770 > 2022-04-13 05:45 | Report Abuse

I share your optimistic view but the macro environment still a challenge.

Posted by cwc1981 > 2022-04-13 07:30 | Report Abuse

Agreed Donald 770

Posted by donald770 > 2022-04-20 14:36 | Report Abuse

Asia Pacific Tel big loss has any effect on FPI? Hope not but FPI stock price is behaving like it has impact on it.

Posted by cwc1981 > 2022-04-20 15:00 | Report Abuse

Telecommunications company?is it related?

Posted by ghochu > 2022-04-20 20:16 | Report Abuse

I have been new to this company. I found above discussion useful and I have some questions. So they are OEM supplier for Wistron and ODM they have only two customers Sony and Yamaha. If I read 2020 Annual Report : 212 mn RM sales is towards Wistron which is 27% of turnover - so its customer C. Page 78 shows revenue from Top3 customer is A : Sony & B is Yamaha? Are investors not worried about customer concentration risk. Any thoughts on how can they grow the business as they must be already key for existing 3 customers, hence its hard for them to grow unless they find some new significant customers. Lastly over the last 3-4 years the company net margin has improved from 4.7% to 8.4% (GPM up from 10 to15%)- any reason why it has improved and is it sustainable? Appreciate responses and do the management share any investor presentation as I cant find any research besides financial reports?
Thanks

Posted by Dhando > 2022-04-21 09:15 | Report Abuse

@ghochu "The global bluetooth speaker market reached a value of US$ 10.1 Billion in 2021. Looking forward, the publisher expects the market to reach US$ 30.4 Billion by 2027, exhibiting a CAGR of 19.1% during 2022-2027."
https://www.prnewswire.com/news-releases/global-bluetooth-speaker-market-2022-to-2027---industry-trends-share-size-growth-opportunity-and-forecasts-301490007.html

Posted by Dhando > 2022-04-21 09:17 | Report Abuse

Quite a few MNCs are moving out of China, and are looking at SEA countries to fill the gap. I expect FPI growth will be higher than industry average of 19.1%

Posted by Dhando > 2022-04-21 09:19 | Report Abuse

I believe there are four major customers A. Sony, B. Wistron, C. ?.., D. Yamaha (new customer)

Posted by Dhando > 2022-04-21 09:23 | Report Abuse

RoIC=RoE >20% and zero debt. Company is utilizing its capital efficiently.

Posted by ghochu > 2022-04-21 10:43 | Report Abuse

Dhando many thanks.

Posted by cwc1981 > 2022-04-21 11:57 | Report Abuse

All the indicators looks good but not much momentum.

Posted by ghochu > 2022-04-21 13:02 | Report Abuse

Dhando : I have lots of questions and I cant find any analyst report, so bothering you again? rWhen there is so much demand - why they have only 3-4 customers? Are these customers introduced by Wistron or are their own? Are they having capacity issue and in future they need to spend to expand and growth will increase?

Posted by ghochu > 2022-04-21 13:03 | Report Abuse

I dont know if there is private message function in kise as I dont want to bother other participant with so many questions

Posted by Dhando > 2022-04-21 13:56 | Report Abuse

There is very significant yoy upwards earning momentum.
Not sure why it is priced so cheap - even if we assume it falls under consumer category and not EMS. Perhaps it is due to ESOS.
Anyway value investor follow the earning and mis-priced stocks like this provides good opportunity.
Sony and Yamaha are direct customer and are not going through Wistron. There is no analyst report perhaps due to small market cap below 1B. Anyway most analyst report are not worth the paper they are printed on.

Posted by Dhando > 2022-04-21 14:01 | Report Abuse

CAPEX expenditure for 2021 is ~23M which is a good news indicating FPI is expected to grow.

Posted by YoongGer > 2022-04-21 14:10 | Report Abuse

ada big shark come in ??

Posted by YoongGer > 2022-04-21 14:10 | Report Abuse

pls come in yea need more force to push to create momentum hehehehe

Posted by Dhando > 2022-04-21 14:57 | Report Abuse

Actually you do not even need a big shark. Company has ~220M cash. A buy-back program will create a huge price uptrend

Posted by JKing > 2022-04-21 15:17 | Report Abuse

Fpi second largest customer is Roland. Roland factory is next to fpi. Fpi lease half of the factory to Ronald.

Posted by JKing > 2022-04-21 15:18 | Report Abuse

Fpi has been actively hiring for local worker in late March early April, more line is working on 24 hours. Consumer is looking for smaller but high quality speaker and fpi has the technology

Posted by JKing > 2022-04-21 15:23 | Report Abuse

Fpi has low PE , it is because the boss do not believe in giving investor briefing and sharing. Traditional businessman, focus is on growing the business rather than singing in the town promoting FPI. GOOD result tell the achievement is their believe. That is why many do not know fpi and you will never able to search online if u want to know fpi. You need the hard work to perform your search outside of virtual space. Go and survey their klang factory at midnight and you may notice how active is the factory at this hours

Posted by ghochu > 2022-04-21 16:57 | Report Abuse

This business has very high NPM, low capital expenditure- Fixed Asset and working capital also reasonable - why they are able to achieve this. Do they have technology or is it because they focus on niche area?

Posted by EeRickLee0714 > 2022-04-22 13:47 | Report Abuse

I think like many other EMS, FPI too is hiring both local and foreign workers but I do not know the ratio. To achieve a high degree of automation might not be realistic for complicated assembly because the product design is determined by customer and the design always change because of the need to produce new models every year. Also, due to pressure to complete product development in very limited time, a designer might not put as much effort to think of manufacturability of the design but to quickly finish the project.

Posted by EeRickLee0714 > 2022-04-22 13:48 | Report Abuse

So I believe they still need lots of workers even though they could automate some of the processes. As for the business prospect, I agree with you that it is easy for the OEM to register double digit growth for smart audio and musical instrument section provided the OEM is attached to the right customer. FPI has been allowed to work full swing and achieving higher revenue in Q4 qoq and yet is still facing shortage of labour. If OT is able to solve the labor problem they wouldn't have mentioned this in the report. That means, order in 2022 should be considerably higher than 2021. And I believe Taiwanese's capability to solve problem.

Posted by Sardin > 2022-04-22 16:34 | Report Abuse

Hi JKing, may I know from which source you got to know that Roland is FPI's second largest customer?

Posted by stockraider > 2022-04-24 08:54 | Report Abuse

Correctmah! Fpi not only highly profitable with earnings growth, it is cash rich and pays a very good dividend of 20 sen too loh!

U R getting div yield close to 6% pa with continue earnings growth.....not easy to get loh!

Can invest some for your children education fund loh!

Posted by Dhando > 2022-04-24 09:41 | Report Abuse

The share buyback proposal that the board of directors are proposing for the AGM could not have come at a better time. Many glove companies had share buy back program last year to prop the already high value of their stocks. It did not work as intended as the stock were way overpriced then. But the proposal by FPI last Friday is different and shows the BoD prudence in using the company's cash. Buyback program should only be initiated when the share price is really low and way below its intrinsic value. With a PE of 8 and expected revenue and earning growth of at least 20% per year for the next few years, it will be difficult to find a more opportune time.

Posted by ghochu > 2022-04-24 15:20 | Report Abuse

Dhando : 8x PE you are assuming 25% growth profit or this year? I have not followed the company for long time - is this the first time they are doing buyback resolution as many companies I have seen taking resolution but not doing it?