FORMOSA PROSONIC INDUSTRIES

KLSE (MYR): FPI (9172)

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Last Price

3.22

Today's Change

-0.02 (0.62%)

Day's Change

3.21 - 3.25

Trading Volume

34,300

Overview

Market Cap

822 Million

NOSH

255 Million

Avg Volume (4 weeks)

244,843

4 Weeks Range

3.10 - 3.33

4 Weeks Price Volatility (%)

52.17%

52 Weeks Range

2.55 - 4.62

52 Weeks Price Volatility (%)

32.37%

Previous Close

3.22

Open

3.23

Bid

3.23 x 1,000

Ask

3.25 x 800

Day's Range

3.21 - 3.25

Trading Volume

34,300

Financial Highlight

Latest Quarter | Ann. Date

31-Dec-2021 [#4] | 24-Feb-2022

Next QR | Est. Ann. Date

31-Mar-2022 | 28-May-2022

T4Q P/E | EY

8.48 | 11.79%

T4Q DY | Payout %

6.11% | 51.80%

T4Q NAPS | P/NAPS

1.62 | 1.99

T4Q NP Margin | ROE

10.32% | 23.40%

Market Buzz
Company Profile

Sector: CONSUMER PRODUCTS & SERVICES

Sector: CONSUMER PRODUCTS & SERVICES

Subsector: HOUSEHOLD GOODS

Subsector: HOUSEHOLD GOODS

Description:

Formosa Prosonic Industries Bhd is a Malaysian based company. Together with its subsidiaries the company is engaged in manufacturing and sales of speaker systems, investment holding, provision of system development and solutions for business software. Its reportable segments are Malaysia and United Kingdom with the majority of the revenue generated from Malaysia.Its product portfolio includes wireless speaker products, conventional speaker products, musical instrument products and acoustic products. It also offers services including design services, manufacturing services, supply chain support and quality systems.

Discussions
9 people like this. Showing 50 of 2,610 comments

Collin59

buy back saham , sold all bitcoin crypto bitcoin ggggggg looooo

4 weeks ago

Collin59

buy back saham , sold all bitcoin crypto bitcoin ggggggg looooo

4 weeks ago

EeRickLee0714

1. Capacity expansion through investing in new machinery i.e. injection machines, CNC machines, fully and semi-automated machines.

2. Process improvements via the adoption of Just-In-Time (“JIT”) approach to reduce the usage of production floor area and storage space (minimize inventory holdings) and streamlining manufacturing processes.

3. Enhancement of tracking systems covering the materials store, production, and logistic areas to reduce downtime and defect issues.

3 weeks ago

EeRickLee0714

dividend cash cow <3

3 weeks ago

ghochu

Hi EeRick lee : is ur previous comment after reading latest annual report. i did not see any comment regarding capacity expansion in teh latest AR?

3 weeks ago

Desmond_of_KLSE

FPI is not Bank or Money Lender---cash rich no use.

"investing in new machinery i.e. injection machines, CNC machines, fully and semi-automated machines"
This is not "investing"; this is just routine machines maintenance or renew or upgrade.

Wistron fully set up Petaling Big Plant. Why Wistron still need FPI?

FPI has only two big customers-----SONY & Roland. Are they expanding? thriving?
FPI can get new big customer SONOS???

3 weeks ago

YoongGer

steady PROSONIC <3

3 weeks ago

Thirai Thiraviam

@Sardin - The trading for the past few days has been light; so, I wouldn't consider the sellers as motivated. It's probably traders using the Bollinger Band as a guide. They could also be treating the current level as the support, given it was the high point reached on 15 Feb.

As to your other question: I am not in the electronics field.

3 weeks ago

Thirai Thiraviam

@Desmond_of_KLSE - Thanks for highlighting the Wistron factory matter. Something to think about.

3 weeks ago

JKing

I can answer Desmond query. Cash is reserve for expansion on a 20 acre land it bought in klang, it bought the land from govt for 40 acres JV with wistron, wistron has use 20 acres to build a factory and was in production for the past 3 years while fpi portion is still vacant land.
Fpi has a new customer Yamaha guitar. Sonos is wistron customer therefore don't expect fpi will have direct dealing with Sonos. Fpi has enough customer of their own now to occupy their factory capacity which is running 24/7 now

3 weeks ago

JKing

It is good now that fpi focus on automation although a bit late. However it has proof that their automation plan is producing result rather than many organisation has invested a lot in automation but not really effective. To support my opinion fpi has reduce 20% workforce in 2021 with a big increase in sale. The automation only cost them 20 mil. All this information is in the latest 2021 annual report

3 weeks ago

Angel of KLSE 大马股仙

I will urge FPI CEO to sell 100% FPI shares to wistron so that FPI berhad change name to Wistron berhad. Do you support my proposal?

3 weeks ago

Angel of KLSE 大马股仙

At the coming AGM

3 weeks ago

ghochu

JKing: I missed that they have reduced workforce by 20%. Which Page is in AnnualRport. What I liked was its one of few companies where employee cost increased way lower than revenue growth?

3 weeks ago

JKing

Page 32

3 weeks ago

remus

Hi all, increase of RM300 of minimum wages from 1.2K to 1.5K next month1-May.
Since FPI has large number of workers (~3,300), what is the impact on bottom line ?
assume 70% workers = 2,310 affected by min wages, the monthly cost will increase by 2,310 x RM300 = RM693,000 ?

3 weeks ago

Thirai Thiraviam

Page 32 of the AR provides the detailed changes in the workforce by ethnicity and nationality between 2020 and 2021. We see the total workforce has reduced by 18% from 3,441 to 2,810. There is also a slight shift away from foreign workers -- from 73% to 71%.

3 weeks ago

Sardin

@Thirai Thiraviam, thanks for your valuable technical analysis. That's worth to take note.
@JKing, AR page 5 mentioned the labour shortage issue. "The Group anticipates this year to be a very challenging year in view of market volatility, supply chain issue, rising commodity and energy prices and labour shortage issue..." So I think the reduction of work force is not an intended result. Instead, the semi-automation and selective automation could be forced by labor shortage.

3 weeks ago

gohku

This is a good world class competitive company.

Very good profit & dividend payout

3 weeks ago

Sardin

In contrast, accute reduction of work force is worrying because it could be a signal of declining business in near future which the income statement has yet to observe. However, I think that's due to difficulty to get labor replacement rather than loss of business.

3 weeks ago

gohku

It could be due to their cost savings labor workflow & automation are bearing fruits now.

3 weeks ago

Thirai Thiraviam

It appears the pandemic has forced FPI to embrace automation. In the 2019 AR, there is no mention of automation in the GMD's statement. Also, between 2018 and 2019, the total workforce increased by 13% from 3,331 to 3,749.

In the following year's statement, however, we see the following: "Focus on tactical investment and talent development to optimise business efficiencies and performance. Under my direction, tactical investments will continue to be made into selective automation that comprises self-developed jigs and equipment and new and better way of production methods ... to upscale its efficiencies ... and to achieve cost savings target." And, in that year, the total workforce reduced by 8% from 3,749 to 3,441.

This year's statement builds on the record, and says the following: "I pledge full attention in training and teaming up our employees to drive competency and excellence and boosting internal productivity and process semi-automation ... [and] ... continue to invest into selective automation that comprises automation machines, self-developed jigs and equipment, and to reengineer processes and optimise resources in order to allow the Group to reduce reliance on manpower." This year, the total workforce, as highlighted in previous posts, has dropped by 18%.

I find this progression encouraging.

3 weeks ago

Sardin

The Wistron PJ plant, I believe is meant for other production transfer from China yet to be completed in 2022, rather than from FPI, and may spill some benefit to FPI, although in 2021 revenue from Wistron reduced mildly by around 5.3%.

3 weeks ago

Sardin

I see quite a few people saying Roland is the customer B but I'm not sure why they say so. I did guessed Roland has been customer B but recently I think I could be wrong. We all are certain that Wistron is the customer C. The annual report does not tell who is customer A and B. Many think that Sony is one of the top two. I would like to ask could it be Bose and Denon instead?

3 weeks ago

gohku

I think FPI serve a purpose to operate independently from winstron, because it can get jobs independently from winstron competitors.

3 weeks ago

Thirai Thiraviam

@Sardin - I wonder if the statement in page 9 of the report -- on the inventory build-up -- caught your attention. The management blames higher sales (doubtful), shortages in components (doubtful) and lack of shipment availability (possible). What do you make of it?

3 weeks ago

Sardin

@gohku, I agree with you on that point to a certain extent. And I think that's why FPI own different subsidiaries at different addresses.
@Thirai Thiraviam, if there is serious shortage of semiconductor chip the finished goods cannot be completed. So short of a cheap component can cause the whole expensive FG locked as inventory. So it is possible. The inventories has came down from a peak in Q2 (157 m) to Q4 (89 m). Inventory turnover in 2021 as a whole is 11.5, lower than 2019 (14.5) and 2020 (13.9) but about the same compares to 2017 (11.6) and 2018 (11.4).

3 weeks ago

Sardin

I know some renown home appliances manufacturer was forced to produce "less smart" product variant because short of chips instead of planned smart product.

3 weeks ago

Sardin

Other than that, some companies that practice lean manufacturing and just-in-time (JIT) manufacturing has changed their strategy, that is, to build stock for critical components. Also, the addition of inventories are only around 5% of its cost of sales and so I think it is within reasonable level. Furthermore, if it is in expansion mode to bring in more projects / customres, it will have to purchase and stock inventories for these new projects in advance.

3 weeks ago

JKing

Since last year almost all business urge for worker and even paying more than RM1.5k you would not get semi skilled worker. Therefore I do not think that many of FPI worker is lower than rm1.5k now in its workforce. This is how the recent worker and avoid training cost and production efficiency.
While whether is it material shortage, higher inflation cost and shipment challenge, we are all facing it regardless of industry since last year therefore looking at how fpi manage it , I am not too worry or focus on this areas.

3 weeks ago

JKing

While fpi major customers are all Japanese company and once you met their expectation, relation and loyalty to continue is their culture. With that I would focus more on how well fpi sustain their quality and integrity in their business. So far they deliver what is promise

3 weeks ago

Sardin

I think FPI pay 1800 and above. Last year was 1500 if not mistaken.

3 weeks ago

EeRickLee0714

anything to do with Roland ?

2 weeks ago

EeRickLee0714

i remember i saw someone mentioned bout it last week before raya holiday

2 weeks ago

cwc1981

Any idea on how much will be the 1st Quarter Earnings?

2 weeks ago

YoongGer

out of context abit,

what is the best brand for headphone in your opinion? plan to get one

2 weeks ago

JKing

With the higher production of external business product which has higher margin than the wistron product and the CNY break of a week, net profit is at 25-30mil. Forex gain is minimum on the first quarter however if USD remain at current rate, there will be a big forex gain in 2nd qtr

2 weeks ago

stockraider

Very high div yield mah!

2 weeks ago

Sardin

@JKing, so you expect EPS 2022 Q1 to be about the same qoq.

1 week ago

cwc1981

Last year Q1 was 8.3 cents. If able to match will be great

1 week ago

JKing

Should be better than Q1 last year

1 week ago

cwc1981

Great

1 week ago

JKing

Fpi has another new customer. Denon

1 week ago

EeRickLee0714

seems legit

1 week ago

EeRickLee0714

DY is good

1 week ago

cwc1981

see 1st Quarter result earning good or not

6 days ago

Sardin

@JKing, may I know how did you get the magic number RM 25-30 million net profit for 2022 Q1?

6 days ago

goldeneye

Expecting good result coming soon.

4 days ago

Sardin

Hope there is EPS 11 sen per share

4 days ago

YoongGer

QR coming !

1 hour ago

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