GLOBETRONICS TECHNOLOGY BHD
KLSE (MYR): GTRONIC (7022)
You're accessing 15 mins delay data. Turn on live stream now to enjoy real-time data!
Last Price
0.535
Today's Change
+0.005 (0.94%)
Day's Change
0.525 - 0.545
Trading Volume
17,696,600
Details of Changes
Securities After Change
Transactions
| Ann. Date | Name | Details of Changes | Securities After Changes | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Date | Type | No. of Shares | Price | Direct (%) | Indirect (%) | Total (%) | ||||
Discussions
17 people like this. Showing 50 of 7,876 comments
Globetronics Technology (GTB MK/CEASE COVERAGE/RM0.55/Target: RM0.60)
Cessation Of Coverage
WHAT’S NEW
Knee-jerk selldown on a confluence of fundamental and sentimental concerns. Note that Globetronics Technology’s (Globetronics)
share price has plunged from RM1.55 in mid-July to near a 10-year low of RM0.55, which sent its valuation down to 1.2x PBV (based on its
latest BVPS) or 12.9x 2024 PE which is close to -2SD below its average five-year forward mean PE. This could be attributed to a confluence
of fundamental and sentimental factors such as: a) risk aversion following the unwinding of yen carry trades (which saw Bursa Malaysia
Technology Index shrinking by 25% in the period), b) concerns of its earnings outlook following a weaker global outlook, and c) panic
selldown on the resignation of its auditors - Messrs. KPMG (on a voluntary basis).
Still on a sluggish recovery. Globetronics recently reported 2Q24 net profit of RM4.3m (-25% qoq, -40% yoy), bringing 1H24 net profit to
RM10.0m (-4%) which came in below expectations. The negative deviation was due to weaker-than-expected loadings from its key
customers. Note that 2Q revenue dropped 7% which we believe was due to seasonally weaker loadings with core net profit plunging 25% on
lower operational efficiency.
Actively scouting for new opportunities. The group had previously freed up capacity from low-margin quartz crystal timing devices
(volume loadings are expected to drop further from 8m/month in 4Q21) alongside the completion of 30,000sf of new floor space to take on
new businesses from MNC customers. It had also invested RM10m in a cleanroom facility at its Bayan Lepas plant which commenced mass
production in late-22. The group is currently in talks with new customers for new programme qualifications while having active engagements
with potential Chinese and Taiwanese customers for new business opportunities.
EARNINGS REVISION/RISK
While we make no changes to our earnings forecasts, we factored in a conservative valuation close to -2SD below its average five-year
forward mean PBV to err on the conservative side, waiting for a clearer signal of better earnings visibility. The switch in valuation has resulted
in a change in our PE-based target price of RM1.20 on 24 August (on HOLD recommendation), to RM0.60 based on 1.3x PBV based on
2025 BVPS.
VALUATION/RECOMMENDATION
Cease coverage on Globetronics due to a reallocation of team resources. Note that our recommendation, along with target prices and
estimates should not be relied upon following the cessation of this report.
ANALYST
Desmond Chong
+603 2147 1980
desmondchong@uobkayhian.com
1 day ago
IB cease coverage meaning sell? So we must buy? Why IB coverage time price sky high then fall?
1 day ago
From the above, no mention of whether and how the non-trade receivable of RM 60m is collectible or not and why the"reclassification " or otherwise was done which was not pervasive in the view of the incumbent Auditors. Their forward PE is a clear of indication of the expected drop in upcoming revenue. Given with the uncertainty with dark clouds ahead, it is not surprising that its TP has been significantly downgraded.
1 day ago
U think ah oii simply burn his money by shifting from fronken to gtronic ? U are totally wrong ! APB bankrupt is their problem as long as gtronic fundamental still very strong !
1 day ago
Ah Oil is shifting to Gtronic with a specific agenda... He is capitalising on the high price of Fronken by realising his stake and increasing his shareholding in Gtronic at depressed price in order to gain control over the Board of Gtronic which is currently controlled by APB .
It is believed that a fierce board room tussle is unavoidable to be erupted between the sects of Ah Oil and APB. Whoever controls the Board controls the cash at his disposal. It is believed that the share price is expected to be depressed further during the said confrontation in the Board room.
1 day ago
Gtronic seems to have stopped falling despite EPF and Tabung Haji selling. Time to collect some 😁
1 day ago
The share price is expected to be stagnant if not depressed further . It is believed that EPF and LTH are planning for another exodus any moment from now......
1 day ago
APB limit down with many more waiting to sell. Is the >RM 60 million other receivable only belong to APB?
1 day ago
EPF has shown interest in acquiring Top Glove again due to the high tariffs being imposed on china produced gloves. Top Glove is expected to improve their upcoming QR . However, it is noticed that no prominent investors are keen to acquire Supermax for the obvious reason of Board room in disharmony if not tatter now ...
1 day ago
APB has borrowed significant money to buy Gtronic for 140M. APB not only now need to face with the repayment of the loan ( borrowed to buy Gtronic) but also faced with the huge investment loss of 105m in Gtronic given the current price of RM 0.550 , seriously undermining its share value. Basically, it is double blows to APB. It is learnt that APB has reclassified cash of 22m as deposit ,which was reported to be not pervasive in the view of their external auditors
The cash of 60 m under other receivable is related to Gtronic, Until now ,the BOD of Gtronic has not addressed to this irregularity unfolded by the incumbent auditors , but merely cited that " business is as usual ". Do you believe what they have said??
1 day ago
As per my following post 3 days ago, it was already foreseen( without hindsight) that APB would be in deep trouble in days to come if not later...............
--------------------------------------------------------------------------------------------------------
Stock: [GTRONIC]: GLOBETRONICS TECHNOLOGY BHD
3 days ago | Report Abuse
Yes ,
ABP is believed to be next in line with the expected plummet. It is learnt that APB has borrowed more than 150m to fund the purchase of Gtronic at RM 2.00 each for 140m.Their investment in Gtronic has suffered more than 75% loss in share value due to recent horrendous melt down of Gtronic in share value.
APB has been performing below par. They are expected to report significant loss in their upcoming QR due to the said melt down
1 day ago
Yer , Shareholders of APB are reported to be very pissed off with the Mgt to get a lousy deal to acquire Gtronic , through borrowings resulting in a huge investment loss . The gearing ratio has not only increased but also the capitalisation is seriously impaired by the huge investment loss
1 day ago
after Gtronic now APB, ikan bili cry also no tears .... pray these cheaters all no good die !
1 day ago
As at 30/6/24 the Company still has Cash+ about RM144m, the disposals by EPF n LTH n resignation of auditor were in Sept., I wonder how much Cash remaining as at todate?
1 day ago
Retailers are the one buying the dip. When APB dispose, ikan bilis will burn hard...
1 day ago
APB is expected to nosedive fast and furious when it resumes trading tomorrow. No supports but only a few of speculators are taking their chances of do-or-die....
21 hours ago
APB bankrupt also nothing impact gtronic ! Something good n hidden gem in gtronic is brewing until some smart investors want to swallow it all !
20 hours ago
CEB and Gtronik have similar postmortems..
with Fed cut rate around the corner, this will all go down to how they manage the debt.
this is where CEB have the advantage, compare to Gtronik.
but doesn't mean this is bad counter,.it just matter of managing the debt.
for now..
i ll sit aside and watch.. more bears coming.
time will come for good technical entry.. patient is the key..
for now..it a falling knife!
20 hours ago
APB is impacted by the investment loss in Gtronic. Basically Gtronic has messed it up with its corporate governance issues leading to loss of confidence in the interim management.
20 hours ago
RM has been strengthening against USD hence making exports more expensive which would impact the export of Gtronic in terms of its upcoming QR.
20 hours ago
It takes years if not century to establish the reputation but it takes second to destroy the said reputation leading to loss of confidence and trust among the investors.
20 hours ago
It is believed that another round of exodus is expected for Gtronic. The incumbent auditors,KPMG is said to be communicating with the new auditors for the reasons why they quitted in protest.
19 hours ago
hm...Wait for it to settle down at 53 cents for a while and then hentam 😬
18 hours ago
APB used GTRONIC shares as security for its 100+m loan to buy its GTRONIC shares?
18 hours ago
They do have a controlling interest. There is a pot of gold (cash). Companies has been taken over & strip of it's assets before liquidation. A common practice.
18 hours ago
The quickest way is to strip off the " cash reserves" from 200m to none. 60m has already been stripped off while the remaining of 140m is to be stripped off soon . NAB will be depleted soon , leaving the investors in cry like hell............
18 hours ago
So double whammy?
GTRONIC itself whammy
GTRONIC share price whammy
Share price will whammy first
17 hours ago
You have put a lot of whammy on this counter as if it was destined to be doomed ...............
17 hours ago
is it good when big investors left the company????
lighter n can fly higher.....
or to the longkang????.....
17 hours ago
When the Lion king is gone forever , what is left is only hyenas are lurking around and messing about ............. No show.
16 hours ago
normally, if the major shareholders exit the company carry weight. It means their outlook on the company is negative. Further this is EPF, carry alot of weight.
16 hours ago
The dividend policy was a legacy of the original 2 veterans , the Chairman & CEO. A way of rewarding themselves. It's a new generation, this policy might not continue.
13 hours ago
They are now scouring for new potential customers to boost revenue , until then, it is a guessing game
12 hours ago
Post a Comment
Featured Posts
Latest Videos
MQ Trading Signals
Time
Signal
Duration
Type
2024-09-18 16:40:00
EMA 5
10 Mins
BUY
2024-09-18 16:40:00
EMA 5
5 Mins
BUY
2024-09-18 16:15:00
EMA 5
5 Mins
SELL
2024-09-18 16:10:00
EMA 5
5 Mins
BUY
2024-09-18 15:10:00
EMA 5
10 Mins
SELL
Apps
Top Articles
1
Coffeewithshares
2
4
Stock Market Enthusiast
6
8
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
joyvest
APB has borrowed significant money to buy Gtronic for 140M. APB not only now need to face with the repayment of the loan ( borrowed to buy Gtronic) but also faced with the huge investment loss of 105m in Gtronic given the current price of RM 0.550 , seriously undermining its share value. Basically, it is double blows to APB.
1 day ago