nice greatech those keep saying run, you better run don earn, you don deserve it @hanzo 30 year? your mind is too old of this tech stock go glove stick with uncle and aunty.
13/08/2021 7.17 7.70 +0.53 (7.39%) BUY PUBLIC BANK 12/08/2021 7.07 6.80 -0.27 (3.82%) BUY PUBLIC BANK 06/08/2021 6.95 8.80 +1.85 (26.62%) BUY MACQUARIE GROUP
The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker.
Second quarter 2021 results: Revenue: RM136.4m (up 143% from 2Q 2020). Net income: RM38.4m (up 118% from 2Q 2020). Profit margin: 28% (down from 31% in 2Q 2020). The decrease in margin was driven by higher expenses.
all tech stock drop after the noon break..if overbought and profit taking it couldnt be all counter at the same time..i wonder wat is the general reason behind it..tech counter all red after 2:30pm.
"Some progressives are unhappy with his bent toward easing financial regulations that were put in place after the 2008 crisis and think the central bank should have someone more in sync with Democratic politics in charge.
If Mr. Powell isn’t given a new four-year term next February, when his current term expires, the leading contender for the job is Fed governor Lael Brainard, an economist appointed to the board in 2014 by former President Barack Obama.
Mr. Powell and Ms. Brainard have had similar views on monetary policy in recent years, but Ms. Brainard has in recent months argued more forcefully for the Fed to develop a central bank digital currency. Mr. Powell has said he is undecided on whether the risks outweigh the benefits. Ms. Warren has also recently talked up the potential benefits of such a project.
Reappointing Mr. Powell “would be disappointing” for those who care about Mr. Biden’s agenda to address financial regulation, climate change and racial wealth gaps, said Erik Gerding, a senior fellow at Americans for Financial Reform, a nonprofit that argues for tougher financial regulation. “Having Jerome Powell continue would just mean one less vote for sustained and healthy regulation of the banking system.”
Greatech result alone is good, but if you look at it together with valuations, this is really within expectation or you can consider it as underperformed. This is really NOT a 'WOW" performance.
Comparing to IB targeted profit of RM162m, Greatech YTD result is only meeting 45.6% of targeted profit, NOT even reach 50% for half year profit.
Core net profit Q1FY21: RM35.6m Core net profit Q2FY22: RM38.4m
Qoq share price increase 33%, but qoq profit only increase 7.9%.
Simple Forward PE: RM9,002/(RM74m x 2)= 60.8 (This is very high PE) PEG: Current PE/Forecasted Growth: 72/31.2= 2.30 (more than 1 means overvalued. Now its more than 2).
Look at the quarter profit carefully. I believe the range of quarter profit will be around $38m-RM40m for next few quarter. IB forecasted profit is also RM162m for FY21.
Also, look at the orderbook now. Its decreased to RM206m from RM293m last quarter. This tell you the company did not get any substantial order in the quarter.
Expansion wise- Look at the IB report again. Major expansion will only completed in 2022 year end or beginning of 2023. So you are still expecting even more QoQ profit in the next quarter?
So, judge by yourself. Do not chase high and do not affect by those always call for buy. I strongly doubt those who so positive or ask ppl to buy will buy at this price.
Do you seriously think the drop today is due to the underperforming earnings that you claimed? Today is all politics
Also, they signed a MEPA with First Solar and expansion will take place in Ohio. Also, management have implied that they have more clients ready than ever in the last earnings call/conference. If the strong order book has been reflected in the last quarterly earnings, that would mean there is no more growth. Where else in this market (Bursa) can you find a company with high PEG 1.33x other than financials (CIMB 33x) and other companies like D&O 2x. Also Greatech (42.8x) has the lowest P/FCF (last twelve months) in the industry besides (32.5x).
There are very few companies like this. Probably only big banks, a few logistics companies and most tech companies.
Unless the management is spreading lies (which is highly unlikely since they have JP Morgan, Kenanga, and basically all mutual funds invested), there is no reason to believe that the company will face an issue with order book and future demands
It is difficult (but not impossible) to find a company with decent earning growth and good free cash flow. That is until interest rate hikes when investors WILL eventually return to value and cyclicals.
In such pandemic, you expect companies to make money out of thin air? In truth, cyclicals should be performing well as the economy reopens. But in Malaysia, things are different. The economy is on a downward trajectory and thus investors will lose money investing in cyclicals for the this and potentially the next few quarters. Only tech companies remain in full operation except the first two movement control orders (March 2020). Business was intact throughout Q3 2020 until now.
Where did you see my comment mentioning about politics? Its all about fundamentals..
I am providing my views by giving out fundamentals analysis supported by the numbers and valuation and obviously its overvalued now..its up to you whether you think its make sense or not.
Btw, are you buying too much until you subjectively defend the overvaluations?
How Samchem is relevant to Greatech in this Greatech post? If you want to discuss Samchem then pls go Samchem..not here please. Dont distract topic here and dont being hostile to me if you just cant justify the valuations here.
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wa15tc
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Posted by wa15tc > 2021-08-12 10:59 | Report Abuse
nice greatech
those keep saying run, you better run don earn, you don deserve it
@hanzo 30 year? your mind is too old of this tech stock go glove stick with uncle and aunty.