Posted by John Wick > 2017-06-20 11:44 | Report Abuse

keep pushing!!

Posted by Wong Chie Kiong > 2017-06-21 20:14 | Report Abuse

Introduction

SAM is 75% owned by Temasek and is principally involved in manufacturing of the following:
(a) Semiconductor related equipment; and
(b) Mechanical parts for Boeing and Airbus.

In the past two years (2015-2016), SAM secured new contracts from Boeing and Airbus, resulted in increase in order book to RM3.5 billion. To cater for the higher demand, SAM is investing RM100 mil in a new manufacturing plant in Penang, which is expected to start generating profit in 2018.

Financial Highlight

(a) The group performed well during the period from June 2015 until March 2016. However, from June 2016 onwards, earnings had weakened markedly due to followings: Thinning of margin (caused by weakening of USD?) and decline in revenue of aerospace and semiconductor equipment divisions (which accounted for the bulk of revenue);

(b) Apart from currency effect, one possible reason for decline in aerospace profitability was start up cost for the new Penang plant;

(c) Performance of Precision Engineering division was impressive. It commanded EBIT margin of more than 30% consistently;

(d) PBT staged a strong rebound in latest quarter (ended Dec 2016), back to the RM15 mil level seen in 2015.

Aerospace division continued to be weak (both in revenue as well as margin).

Equipment division surprised on the upside, delivering a robust margin of 14%. This single handedly pulled up entire group's performance. Management attributed that to better product mix.

Precision Engineering continued to shine, contributed more than 25% of EBIT based on less than 10% revenue.

(e) If not because of higher effective tax rate of 36%, latest quarter (ended Dec 2016) EPS would have come in very strong and caused a re-rating. It seemed that the group has exhausted its tax credit. But the RM100 mil capex should result in lower tax rate going forward.

(f) One of the most striking observations is how small the group's revenue base has been. For example, over past 12 months (Jan 2016 – Dec 2016), total revenue for aerospace division was only RM300 mil. What is the implication? The implication is that the RM3.5 billion order book should have a huge impact on prospective earnings.

The group has set a target of RM1 billion in revenue by 2019. The bulk of the increase will be from the aerospace division, the revenue of which is expected to increase from estimated RM300 mil in 2017 to RM800 mil by 2019. Observers expect 2018 aerospace revenue to be somewhere in between (probably RM500 to RM600 mil). That should result in a huge jump in earning by 2018.

Posted by 999999999 > 2017-06-22 10:28 | Report Abuse

yes, i believe 10 by yr end

Posted by dompeilee > 2017-07-06 15:41 | Report Abuse

SAM...Oh my SAM!!! :D :D :D :D ;D

Posted by applecider > 2017-07-06 15:57 | Report Abuse

oh your Sam..

Posted by dompeilee > 2017-07-07 09:11 | Report Abuse

Another NEW multi-year high of 8.18! Higher than its peak in 2015 & 2016 :D

Posted by IamGoogle > 2017-07-10 11:33 | Report Abuse

Very solid price performance

Posted by John Wick > 2017-07-10 12:10 | Report Abuse

really fly! breaking out strongly

Posted by aiboon > 2017-07-10 12:18 | Report Abuse

break history high with high RSI...

Posted by ivan9511 > 2017-07-10 17:40 | Report Abuse

sam sam faster break 10 let me sell at 10 and cash out

Posted by leekh5555 > 2017-07-11 15:23 | Report Abuse

ave.up...

Posted by Wong Chie Kiong > 2017-07-12 08:20 | Report Abuse

Getting new tax exempted Credit ☺️

Posted by dompeilee > 2017-07-13 09:44 | Report Abuse

Back to a new 52-week high ! :D

Posted by applecider > 2017-07-24 15:35 | Report Abuse

so fast after ex div. good

Posted by applecider > 2017-07-24 15:40 | Report Abuse

wow quite fast after ex div

Posted by dompeilee > 2017-07-25 13:58 | Report Abuse

Oh my SAM!!! :D)

Posted by dompeilee > 2017-07-29 07:46 | Report Abuse

This year's annual report,appropriately with the soaring eagle on the front cover, was received by me yesterday. Beautifullest AR of all 2017!

Posted by leekh5555 > 2017-07-29 16:29 | Report Abuse

AR page 22

Posted by Wong Chie Kiong > 2017-08-10 19:55 | Report Abuse

Anyone have any news on this counter ?

Posted by suregain > 2017-08-17 18:14 | Report Abuse

Poor result

Posted by bc8660 > 2017-08-18 11:32 | Report Abuse

Please discount more... Looking chance to accumulate more.

Posted by suregain > 2017-08-18 12:13 | Report Abuse

sell down...

Posted by KLCI King > 2017-08-19 01:32 | Report Abuse

Better run before regret, the result is definitely not as expected by the market, market expected more, but how many more quarters need to wait for the results to be delivered as promised by the management? Another con man business?

Posted by KLCI King > 2017-08-19 01:37 | Report Abuse

The CEO of SAM has been shouting to achieve 1bil sales since 2012, what happened now? All fake hopes only.

No more mention 1bil sales target & 3bil award, suddenly all talked about F1 in AR2017. HAHA, ANOTHER JOKE!
http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=176115&name=EA_DS_ATTACHMENTS

Page 1 & 13 of AR2015 said: We will rock to claim 1 billion records. WHERE IS IT NOW?
page 6 talked about 3bil award, WHAT A DREAM, BUT FAKE HOT BUBBLE ONLY
http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=171082&name=EA_DS_ATTACHMENTS

Page 3 of AR2014 declared: half way to bil ringgit destination. WHAT A JOKE!
http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download/?name=EA_DS_ATTACHMENTS&id=164039

Page 6 of AR2012: SAM Malaysia is on the offensive to cross over the RM1 billion revenue. GOOD JOKE!
http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download/?name=EA_DS_ATTACHMENTS&id=156844

Posted by shareinvestment7 > 2017-08-19 17:37 | Report Abuse

Are u sure Sam is con man company? But no doubt from the recent and past 4 QR, no sign of 1 billion revenue yet. Latest Q1 2018 revenue is about 133 million. Annualised x 4 not even 6 million. If expect growth over next 3 quarter, the most can acheive in 2018 is about 600 - 700 million.

Posted by shareinvestment7 > 2017-08-19 17:38 | Report Abuse

And why the Share Premium account has become part of the Company’s Share Capital??

Posted by KLCI King > 2017-08-20 21:00 | Report Abuse

I never said this is con company, I am just seeking clarification only. The main issue is why the management talked loud but never delivered their promises? Not once but few times.

Posted by Up_down > 2017-08-21 22:09 | Report Abuse

The results was somewhat out of market expectation after delivering a stagnant EPS. In fact, the company has delivered higher PBT 2.4m compared to corresponding quarter of the preceding year. PAT remained was due to higher tax incurred 3.5m. Bear in mind, No additional revenue is generated from the new plant since the new machinery has not started putting into operation. On top of that, reinvestment allowance of new machines is not recognized until now. I would expect the company would enjoy much lower taxation as tax incentive kicking in. Bottom line will be improving starting next quarter given higher margin of the products, reinvestment allowance couple with additional revenue and profit from the new plant. Opportunity to accumulate more at this time....

GP Margin
30 Jun 17 - 19.0m (14.2%)
31 Mar 17 - 27.0m (17.3%)
31 Dec 16 - 21.5m (16.2%)
30 Sep 16 - 15.1m (12.4%)
30 Jun 16 - 15.7m (12.3%)
31 Mar 16 - 23.1m (14.3%)

PBT
30 Jun 17 - 13.2m
31 Mar 17 - 21.4m
31 Dec 16 - 15.2m
30 Sep 16 - 7.9m
30 Jun 16 - 10.8m
31 Mar 16 - 17.9m

Turnover
30 Jun 17 - 133m
31 Mar 17 - 156m
31 Dec 16 - 133m
30 Sep 16 - 122m
30 Jun 16 - 127m
31 Mar 16 - 162m

Posted by shpg22 > 2017-08-21 22:16 | Report Abuse

Paying 20+ PE for a company that has a stagnant growth. Only the big talk is supporting the price.

Posted by Up_down > 2017-08-21 22:19 | Report Abuse

It depends how far you want to see its future potential. I believe double digit revenue growth will be kicking in 1st Qtr 2018. Right now, I just close my eyes...ignoring temporary up and down of the share prices.

Posted by shpg22 > 2017-08-21 22:24 | Report Abuse

I would rather buy a company that already achieved the double digit growth with low PE. Its out there u just need to search for it. Instead of praying that this company to generate double digit growth in the future, which may or may not happen.

Posted by Up_down > 2017-08-21 22:33 | Report Abuse

Big talk. Lol....the company spent RM 90 million for new machinery in last 6 months. Double digits growth is on track while fulfilling 3.5 billion orders secured.

Posted by suregain > 2017-08-21 22:34 | Report Abuse

Wil drop,back,to 5.50

Posted by Stock Kingdom > 2017-08-22 09:59 | Report Abuse

Assuming the company can achieve 1b sales in 2019 and assuming the net profit margin at 10%, so the net profit is expected to be RM100mil. The market has priced in the future profit at today's price.

Posted by soonadol > 2017-08-22 13:39 | Report Abuse

Bro Up_down, glad to see you again.

Posted by Up_down > 2017-08-23 16:39 | Report Abuse

Not that bad for buying a company at price RM 7.4 which is able to generate net profit RM 100 million per year...future PER 7.4x only so not really high. lolz

Posted by leekh5555 > 2017-08-23 18:25 | Report Abuse

http://www.sam-malaysia.com/wp-content/uploads/2017/08/Business-Update-17-August-2017.pdf

Posted by Up_down > 2017-08-23 18:40 | Report Abuse

leekh5555. Thanks for the updated information.

Posted by Stock Kingdom > 2017-08-23 18:45 | Report Abuse

At current market value of 928mil, the management needs to work very hard to get 1bil sales & deliver at least 100mil Profit after tax then only this stock will have good chance to fly

Posted by leekh5555 > 2017-08-23 18:58 | Report Abuse

give SAM 2 yrs.you will be well rewarded, i believe.

Posted by Up_down > 2017-08-23 20:00 | Report Abuse

I believe the management would be able to deliver what they have promised judging from the past track records for the last few years.

Turnover
2017 - 537m
2016 - 620m
2015 - 452m
2014 - 453m
2013 - 383m

PBT
2017 - 55m
2016 - 63m
2015 - 40m
2014 - 32m
2013 - 20m

Posted by lbkeat > 2017-08-24 17:11 | Report Abuse

I attended the agm on last Thursday mr Jeffery Goh CEO of the company said new factory( produce beam ) start operation which four machine installed four more machine will be installed by the end of the year this will occupied the 2/3 of new fax space. 700 to 800 million turnover is reasonable figure when their new factory fully operate by next year according to management team

Posted by yktay1 > 2017-09-22 17:45 | Report Abuse

More 787 orders!

https://www.bloomberg.com/news/articles/2017-09-21/boeing-lands-11-billion-787-deal-from-resurgent-turkish-air

Posted by paperplane2016 > 2017-09-28 13:03 |

Post removed.Why?

Posted by Booyeah > 2017-10-07 21:52 |

Post removed.Why?

Posted by supersamy > 2017-10-08 23:30 |

Post removed.Why?

Posted by shpg22 > 2017-10-08 23:40 | Report Abuse

Extreme overvalue stock with stagnant growth. Fair value at 3.85

Posted by apolloang > 2017-10-08 23:43 | Report Abuse

3.85 is too low lah,5.0-6.0 is a more realistic price

Posted by jackbangla > 2017-10-08 23:57 | Report Abuse

keep dreaming pls, 3.85 will b here soon

Posted by MsfollowmeTeam > 2017-10-08 23:59 | Report Abuse

See you at RM10.00