Posted by observatory > 2023-02-24 00:07 | Report Abuse

I agree that, adjusted for forex, the core result isn't that alarming. However, the decline in revenue (RM181m in 4Q22, versus RM300m in 3Q22, and RM261m in 4Q21) cannot be explained by exchange rate. Sales to Wistron has dropped even more. So the question is will revenue be depressed in the coming quarters?

Posted by Sardin > 2023-02-24 00:09 | Report Abuse

Hi Uptrending, looking at the figures I feel that Wistron is pulling away some order which they thought not to be shared for long-term but only temporary coorperation according to agreement. However, it seems to me that FPI is able to replace these orders with higher margin product from other customers, which is a good thing that we should be happy to see it (normally only strong product command a higher margin and strong product usually come with a brand owned by an excellent company).

Posted by Sardin > 2023-02-24 00:17 | Report Abuse

Insiders have the advantage to react faster. However, not everyone is smart and be able to read the meaning behind the figures. Some of them might have done the wrong decision too quickly due to this advantage. The real world is full of fun.

Posted by uptrending > 2023-02-24 06:09 | Report Abuse

This Q, the revenue is a disaster. Revenue lost from Wistron was not replaced with non-Wistron revenue which also came down significantly even after adjustment for forex effects.

Top line is far more important than the bottom line. Inventory is also down not speaking well for future revenues..

Posted by Jokers2020 > 2023-02-24 06:31 | Report Abuse

hope dont drop like keinhin n chinhin shit..haha

Posted by pinnaclegrade > 2023-02-24 09:05 | Report Abuse

I see this opportunity to add or average down... buy during panic.. only 1 bad quarter doesn't change the fundamentals & long term investment thesis

Posted by CharlesT > 2023-02-24 09:21 | Report Abuse

touch 2.98....quite a sharp drop of 47 cents..

At this level of RM3.00+, after ex div of 21 cents = RM2.80+...quite close to their ESOS level of 2.55...should be quite safe for now

Then depends on their coming Q results

Posted by PeacefulWarrior > 2023-02-24 09:24 | Report Abuse

Agree. Just keep adding, even without capital appreciation, the dividend from this company is good enough to keep for long term.

Posted by Sardin > 2023-02-24 09:29 | Report Abuse

@Uptrending, Q4 revenue dip is due to following main reasons I think: (1) switch of product from low margin product to high margin product (low margin product is normally come with huge order but low profit). That's why if you don't count FOREX lost there is actually 8.xx sen per share earning in Q4. (2) festive season in Q4 will result in lesser output (3) back log (accumulated due to difficulty to get container and and high shipping cost) has been cleared quite a lot in Q3 so Q4 revenue would not be as much as Q3. That also explained the improved inventory level. Also, inflation peaked in Q3 last year so there will be inventory value adjustment in Q4. Therefore I think EPS 35 sen per year is sustainable in 2023 and whether or not it is able to make more I guess will depend on other external factors. The following growth will be depending on the trend of smart home, application of IoT and AI, home theater (see the trend of Netflix subscriber, for example).

Posted by donnybelowski > 2023-02-24 09:52 | Report Abuse

Garbage results, garbage company. There u go

Posted by troy88 > 2023-02-24 09:55 | Report Abuse

Unexpected result. Terrible QR.

Posted by goody99 > 2023-02-24 10:04 | Report Abuse

The problem is that they do not provide more explanation in their QR, so we can not access the situation and know what problems they face. How long the problem will persist? They have done nothing to calm investors. Nobody likes uncertainty.

Posted by uptrending > 2023-02-24 10:19 | Report Abuse

A major Gap Down is bearish.
Let Mr Market tell us...

Good Luck to all.

Posted by Sardin > 2023-02-24 10:20 | Report Abuse

Goody99, you're right they do not do detailed explanation. But they do mention forex loss of 13 mil in Q4. Net profit of Q4 is 8 mil. So if there were no forex loss then the profit would have been 21 mil which is still an healthy level. Also, if you divided the tax by profit before tax you'll get 39% tax rate while cukai makmur only 33%. This was only around 25% in Q3 and Q3 already accumulated more than 100 mil profit before tax. So I think FPI under estimate the tax payable in Q3 and some of these tax has to be paid in Q4, and that's why 39% in Q4. If you do the same math for Q3, the EPS disregarding the 18 mil forex gain is only around 10 sen. So I think these findings should be sufficient to calm yourself. 40% of revenue but profit (without considering forex) drops only 25% QoQ so you know the most profitable business stay.

Posted by Sardin > 2023-02-24 10:26 | Report Abuse

I think the storm is over. Very soon a new cycle will begin.

Posted by pinnaclegrade > 2023-02-24 10:46 | Report Abuse

only newbies panic sell this company... lol

Posted by NatsukoMishima > 2023-02-24 10:51 | Report Abuse

This stock fair value around rm 2.20 only bro , who ask u be a gambler to chase high , u deserve to lose money ! Ask u buy dnex but laugh at me , dnex , vstec , swift haulage is a 10 fold gain stock , dont say i never share with u ! Dont be a bodoh get dividen trap but lose 50% capital when insider dump faster than u , no need think what are the reasons behind this dump just leave right now because it s still over value !

Posted by NatsukoMishima > 2023-02-24 10:57 | Report Abuse

This stock will drop to 2 - 2.30 in 2023 !

Posted by Sardin > 2023-02-24 11:08 | Report Abuse

I don't think so. Insiders are picking up at 3.xx. Who's dare or motivated to hold and turn the tide at current situation? Value investor like to wait further, only informed and organised large capital has the insight at what level it should get into the market and they are competing with each other to enter at this price. So that's why I think the storm is over.

Posted by Sardin > 2023-02-24 11:12 | Report Abuse

Unless a company is a total piece of shit. Otherwise, insiders will exploit both the greed and fear of other investors. Yes they dump, but they pick up too.

Posted by Sardin > 2023-02-24 11:21 | Report Abuse

And it is an open secret that these speculating insiders are not the core investors (the trading volume tells). Therefore serious investors would not simply buy and sell and react in this situation. Those who are participating actively in the trading today, they are not actually the one or important roles that decide whether or not this company will thrive or doing worse.

Posted by scanner > 2023-02-24 11:37 | Report Abuse

FPI forex loss is due to year end closing date cut off point resulting to forex loss. Although you have hedge the forex eventually will and back to next month account as forex again. I noticed that the company EPS is very much better than many other companies which the EPS is so much less but the share price is higher than this company. The director declare 21 sen dividend showing the company is still in good shape with higher cash in hand.

Posted by CharlesT > 2023-02-24 12:19 | Report Abuse

I panic bought at 3.00+....its ridiculous...ex div 0.21= rm2.80+ only

Posted by CharlesT > 2023-02-24 12:23 | Report Abuse

The Esos price of rm2.55 seems to be a strong support for the last 2 years+.

However, the coming Q results will tell n decide future price movement

Posted by CharlesT > 2023-02-24 12:24 | Report Abuse

Only God n insiders will know....lol

Posted by DestinyL > 2023-02-24 19:39 | Report Abuse

Picked up 3.02, probably will keep very long

Posted by Value Investor Coo1eo > 2023-02-28 14:55 | Report Abuse

Koyak

Posted by pinnaclegrade > 2023-02-28 19:11 | Report Abuse

patiently waiting to deploy funds...

Posted by Sardin > 2023-03-08 13:28 | Report Abuse

Does anyone know Mr. Shih Chao Yuan chinese name?

Posted by pinnaclegrade > 2023-03-14 15:55 | Report Abuse

so much fear in the market, the time is now !

Posted by gooman > 2023-03-31 10:48 | Report Abuse

Hong Kong stocks log best run since January on China manufacturing surprise as Alibaba, JD.com lead tech winners
Official data showed Chinese manufacturing expanded in March, beating market consensus; services index accelerated this month
Upbeat sentiment around Alibaba Group’s business reorganisation continues to fuel a rally among Chinese tech peers

Posted by Sardin > 2023-03-31 11:19 | Report Abuse

Hi Gooman, how is this related to FPI?

Posted by Sardin > 2023-03-31 23:58 | Report Abuse

21 sen dividend per year will continue to be an amount that the company is at a comfortable position to pay for FY 2023. EPS will be definitely more than enough to cushion that. And the company is definitely capable of paying a higher dividend.

Posted by gooman > 2023-04-01 12:02 | Report Abuse

Indexes jump on inflation data; Nasdaq posts best qtr since 2020
https://financialpost.com/pmn/business-pmn/indexes-jump-on-inflation-data-nasdaq-posts-best-qtr-since-2020

Posted by investor77 > 2023-04-04 17:29 | Report Abuse

Price sold down due to poor result last qtr. Dividend of 21 cents, will be EX soon on 6 th April, i.e. tomorrow lLAST day to qualify. Not bad result as EPS is around 40 cents/ yr.

Posted by Sardin > 2023-04-04 22:55 | Report Abuse

Q4 revenue drop simply because customer placed order earlier in Q3 to avoid missing Christmas and boxing day.

Posted by Sardin > 2023-04-04 22:57 | Report Abuse

Last year revenue Q4 higher because customer delayed shipment Q3 last year due to expensive shipping cost.

Posted by pinnaclegrade > 2023-04-07 08:36 | Report Abuse

Added 80 lots @ 2.78 / 2.79 ...

Posted by bigBOSSguy > 2023-04-07 11:12 | Report Abuse

Going down. Sell

Posted by nicholas99 > 2023-04-07 11:17 | Report Abuse

after dividend gg.

Posted by donald770 > 2023-04-08 11:56 | Report Abuse

It was difficult to assess its worth as q report is sketchy. I used to like this stock for its value but l bet on selling before dividend. At macro level it faced reduced consumer demand n the next few q may not be good.

Posted by donald770 > 2023-04-08 14:52 | Report Abuse

Once the subsequent q not good, the market players may sell down. It could be brutal as demonstrated by many counters.

Posted by simon_nick > 2023-04-10 16:30 | Report Abuse

who wana catch falling knife?

Posted by pinnaclegrade > 2023-04-11 11:26 | Report Abuse

I'm still a net buyer, ready to deploy - waiting for 2.5 or below ^ ^

Posted by pinnaclegrade > 2023-04-11 11:27 | Report Abuse

long term hold, way more attractive than keeping cash or putting FD

Posted by Lance > 2023-04-12 00:56 | Report Abuse

Looks like going to end like the glove counters, forex exchange is just one of the disappointing factor.
Sales dropped, EBITDA dropped, FPI only has 3 major customers, easily gg, run when still can.

"The Group recorded lower sales of RM180.7 million or a decrease of 39.8% in the current quarter compared to RM300.1 million in the immediate preceding quarter mainly due to lower sales volume. EBITDA dropped 76.3% to RM14.2 million from RM59.8 million in the immediate preceding quarter mainly due to lower sales and loss on foreign exchange."

Posted by Value Investor Coo1eo > 2023-04-12 10:43 | Report Abuse

Need more transparency. I think this is heading close to RM1

Posted by pinnaclegrade > 2023-04-12 11:00 | Report Abuse

Winstron Corp on an uptrend, many spreading fear = =

Posted by pinnaclegrade > 2023-04-13 18:23 | Report Abuse

Bought another 31 lots @ 2.66 ^ ^

Posted by Sardin > 2023-04-13 23:17 | Report Abuse

Hi Pinnaclegrade,
1) Sonos' project goes to Wistron, and no longer to FPI anymore. FPI is not getting anything from there, not even the bread crust drops from the table.
2) But I think 2.66 is a good or reasonable price, even though I do not pick it up at this price.