ya, i suspect it's because of them rendering more-value added services, or just incremental service due to the latest machinery purchased by KESM.
So, since kesm is the market leader, therefore I assume that it has pricing power as well. A slight increase in burn-in charge can help secure a more attractive margin (but it seems that in this industry, there's always a cap on how much kesm can go).
Locally, KESM Industries Bhd (KESM) which specialises in electronic manufacturing services (EMS) and provides semiconductor burn-in services, electrical testing of semiconductor integrated circuit (IC), tape and reel assembly has been tipped to benefit from rising automotive sales and increased electronic chips content in cars.
Affin Hwang Investment Bank Bhd (Affin Hwang) in a report dated August 15 said KESM provides a good proxy to the stable and growing automotive semiconductor segment.
The research firm believed KESM is in the right segment to benefit from an automotive structural growth story with strong growing demand for electronics for vehicles, from safety to infotainment and autonomous vehicles.
It noted KESM is an approved vendor for most automotive integrated device manufacturers (IDM) adding that more than 70 per cent of the company’s revenue in financial year 2015 was derived from the automotive segment.
Citing semiconductor market research firm IC Insights, Affin Hwang said the automotive segment would be the fastest growing sub-segment within the semiconductor industry.
The research firm opined that the healthy growth in the automotive segment would be spurred by the production of autonomous vehicles.
An autonomous car is basically a vehicle that is capable of sensing its environment and navigating without human input and uses a variety of techniques such as radar, lidar, global positioning system, odometry and computer vision.
Affin Hwang noted the autonomous vehicle market is expected to grow to US$41 billion by 2025 and thus could result for the increase of electronic components in vehicle given higher vehicle sophistication
Hi all , i am a newbie in share market ...just read about KESM today and feel quite amaze on its share's price . Alex Foo sifu if i not mistaken UNISEM & INARI both company can be Hi all , i am a newbie in share market ...just read about KESM today and feel quite amaze on its share's price . Alex Foo sifu if i'm not mistaken Kesm ,UNISEM & INARI can be categorized in the same field .
i Try to compare these 3 companies in term of rev,profit,cashflow,debt,PE...# of share outstanding ect... Inari RM2.5 ( had split on Jan from 3.5 to 1.8sth) - 2.02b outstanding # of share Unisem RM3.87 -733.83m outstanding # of share Kesm RM16.5 - 43.01m outstanding # of share
Inari have the lowest share price follow by unisem and the highest is Kesm . But if compare the datas as per mention above Inari seem like having the good profit & data follow by unisem and lastly by Kesm ....( actually both 3 companies trend also look quite good, the numbers for the mentioned are different)
The huge share price difference for these 3 companies mainly due to the different on the # of the outstanding share?
Do all sifus here have any advice or opinions on these 3 companies?Thanks.
Sunright owned ~48% of KESM shares... KESM market cap= RM$650.38M or S$216.8M 48% of S$216M=$104.1M So dividing by the number of shares outstanding for sunright $104M/122M, that stake alone is worth ~85 cents... Now Sunright is trading at 55 cents...a 65% discount for its stake in kesm alone..
Also, for those who tak tahu matematik, 55 cents singapore = RM 1.50 ... much lower than kesm RM 16.50. you can get sunright cheap now....if u buy its shares in singapore only 55-56 cents...
For your question, you are trying to ask if KESM is more expensive (RM16) than Inari (RM2).
On paper, it does, from an investor's point of view.
However, stocks are better appraised on per share basis. That is, if KESM is quoted at RM16 per share, how much earning does the company generate per share?
You may want to read more about the EPS (earning per share).
Again, on paper, KESM's EPS seem lower than Inari. We have a group of friends here (i think, particularly paperplane2016), who spotted this gem when KESM is trying to hide as much profit in the depreciation column.
So we did some little accounting back-work and, also impressed by its superb ability in generating cash flows from the operating activities, it gives us confidence that KESM is heading to a brighter prospect.
Another measure you may want to compare in terms of valuation is the PE (Price-earning ratio). Inari has PE > 20, while KESM is <17, where the lower the PE, the cheaper the valuation.
Risk-off sentiment is something like the North Korea tensions and big sell-off. In these circumstances investors avoid buying stocks. There were multiple reasons why Pentamaster used to be bearish.
First, ringgit was strong, and USD was weak. But USDMYR has risen after the FOMC meeting. If USD and MYR are both strong, USDMYR may go up.
Second, as you know the North Korea problem persisted. But it seems like the tensions have eased off.
Third, Pentamster's valuation was quite high, so price correction took place. But price correction was done.
I think it's a good time to buy semiconductor stocks.
Five Malaysian companies -- Elsoft Research Bhd, Kerjaya Prospek Group Bhd, MyEG Services Bhd, Pentamaster Corp Bhd and Vitrox Corp Bhd, are on Forbes 2017 “Best Under A Billion” list. Read more at https://m.malaysiakini.com/news/390038#t1b7a6EwDjXuysCs.99
I think sunright now S$0.60 or rm1.80 is cheap... Its like penta last time..from rm0.50 fly up to now rm5!! Everybody who buy and get 10x return already can buy mercedes and jaguar.. Back then penta boss told they will have double digit growth but not many believe... Nobody will believe penta back then it is an unknown company... Now its one of the top under 1 billion dollar company..according to fortune...
If sunright go from 0.50c to $5 ..domp will be rich..
Sunright posts sharp rise in profit to S$9.2 million on strong revenue
PUBLISHED
31 MIN AGO
SINGAPORE - Sunright, which provides burn-in and test services for the semiconductor industry, reported a sharp rise in net profit to S$9.2 million from S$1.4 million last year.
Revenue for the 12 months ended July 31 was up 14 per cent at S$148 million, due to higher revenue in the burn-in, testing and electronic manufacturing services segment.
Raw materials and consumables used, as well as changes in inventories of finished goods and work-inprogress, rose by 15 per cent to S$34.6 million, to support the increased sales.
Employee benefits expense increased by 8 per cent, mainly due to adjustments to wage rates,higher staff compensation to support the increased revenue, improved staff welfare, training and skills upgrading to raise productivity and production efficiency.
Depreciation was higher by 14 per cent to S$22.6 million, as additional machinery and test equipment were purchased during the current financial year.
Earnings per share swelled to 7.5 cents from 1.1 cents previously while net asset value per share climbed by 5.8 cents to 63.1 cents.
Sunright expects to perform satisfactorily this financial year, citing the global growth in the semiconductor industry.
World-wide semiconductor revenue was estimated to reach US$401.4 billion this year, representing an increase of 16.8 per cent from 2016.
This will likely be a record year surpassing US$400 billion mark, driven by improvements in the memory segment, it noted.
The company has recommended a final dividend of 0.3 cent a share, up from 0.2 cent last year.
Sunright shares ended 3.5 cents, or 6.2 per cent, higher at 60 cents.
The results were announced after market close.
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Posted by leekh5555 > 2017-09-21 15:13 | Report Abuse
my average cost below 7.00..now i put KESM into my safe already.