reports
- Desmond Chong Chee Wai
SKP Resources (SKP MK) - Growth Trajectory On Track; Valuation Reset P...
Growth Trajectory On Track; Valuation Reset Presents A Favourable Entry Point The sentimentally driven valuation reset by a trio of fear factors presents a favourable entry point on a compelling risk-reward profile. We expect a sequentially stronger 2QFY25 backed by healthy loadings from its key customer and better operational efficiency. SKP is benefitting from an inflow of trade diversion opportunities, with discussions for prospective contracts at different stages of evaluation. Maintain BUY....
- Desmond Chong Chee Wai
SKP Resources (SKP MK) - 1QFY25: Within Expectations; Regains Momentum
1QFY25: Within Expectations; Regains Momentum Within expectations. SKP Resources (SKP) reported a stronger 1QFY25 core net profit of RM28.3m (+15% qoq, +31% yoy), which accounts for 23% and 24% of our and consensus forecasts respectively.
- Desmond Chong Chee Wai
Technology - Room For Further Sector Growth
Room For Further Sector Growth Despite the sector’s outperformance ytd, we see room to grow, backed by an early cycle of recovery, stronger earnings momentum, ample trade diversion opportunities and supply chain entrenchment. Additional impetus will come from the government’s supportive measures to anchor the much-needed resources for further value chain advantages. We like companies with strong orderbook backlogs and are frontrunners with structural growth themes. Maintain OVERWEIGHT.
7155 SKP RESOURCES BHD
0097 VITROX
INRI INARI AMERTRON BHD
PENT PENTAMASTER CORP BHD
VITRO VITROX CORP BHD
GTB GLOBETRONICS TECHNOLOGY BHD
VSI V.S. INDUSTRY BERHAD
GREATEC GREATECH TECHNOLOGY BHD
CORAZA CORAZA INTEGRATED TECHNOLOGY BERHAD
SFPTECH SFP TECH HOLDINGS BERHAD
NATGATE NATIONGATE HOLDINGS BHD
TTVHB TT VISION HOLDINGS BERHAD
CEB CAPE EMS BERHAD
OPPSTAR OPPSTAR BERHAD
- Desmond Chong Chee Wai
Technology - EMS: On New Avenues To Spearhead Growth
EMS: On New Avenues To Spearhead Growth Our Johor trip suggests that the worst is behind for cEMS with sectorial risk-reward calculus tilting towards the favourable side. Besides margin improvement from higher operational efficiency, we see additional impetus stemming from: a) a higher degree of vertical integration; b) a wider market reach; c) technological advancement; and d) new prospects from trade diversion, suggesting that the sector could gain further traction even after the recent V-shap...
- Desmond Chong Chee Wai
SKP Resources (SKP MK) - FY24: Within Expectations; Regained Momentum ...
FY24: Within Expectations; Regained Momentum But Positives Fairly Priced In; Downgrade To HOLD Within expectations. SKP reported a stronger 4QFY24 core net profit of RM24.7m (+5% qoq, +23% yoy), bringing FY24 core net profit to RM96.8m (-42% yoy). This accounts for 103% and 105% of our and consensus forecasts respectively.
- Desmond Chong Chee Wai
Technology - EMS: Back To Growth Trajectory After A Long Overcast
EMS: Back To Growth Trajectory After A Long Overcast Risk-reward trade-off is becoming favourable after an acute valuation rift alongside a bottoming earnings cycle. After a sharp inventory adjustment which was particularly apparent in 2H23, both cEMS and iEMS players are seeing a recovery on a meaningful ramp-up from 2Q24 onwards, which would anchor a meaningful earnings spurt from a low base in 2023. We like companies that are frontrunners from trade diversion-related opportunities. Maintain O...
- Desmond Chong Chee Wai
SKP Resources (SKP MK) - 9MFY24: Within Expectations; Headwinds Persis...
9MFY24: Within Expectations; Headwinds Persist But Fairly Priced In Within expectations. SKP Resources (SKP) reported a softer 3QFY24 core net profit of RM23.4m (-13% qoq, -43% yoy), bringing 9MFY24 core net profit to RM72.1m (-42% yoy) which made up 77%/78% of our and consensus forecasts respectively. 9MFY24 sales dropped 31% yoy, on the back of softening global demand on top of the high base in 9MFY23 which was a record-high yearly revenue. Meanwhile, core net profit dropped 42% on rising ...
- Malaysia Research Team
- Vincent Khoo Boo Aik
Strategy - Bargains Created By “Warehouse Sales” Last week’s selldown ...
Last week’s selldown on perceived “warehoused” stocks, as evidenced by the synchronised limit-downs of >10 of the associated stocks, has pulled down the FBMKLCI by 1.0%. Nevertheless, we do not foresee this phenomenon posing a systemic risk to the banking and financial systems, and there is ample liquidity in the equity market to support the fundamentally and institutionally appealing stocks. The selldown has created trading opportunities in the BUY-rated Dialog Group, Ekovest and SKP Resources.
- Desmond Chong Chee Wai
Technology - On The Brink Of A New Dawn; In A Constellation Headed For...
On The Brink Of A New Dawn; In A Constellation Headed For A Spurt The sector is in a constellation headed for a spurt again after multiple rounds of Davis’ Double Killing effects especially after a disappointing 3Q report card which sent valuation rifts back to mean reversion. Most importantly, signs of recovery are more apparent backed by an imminent growth recovery towards 2024 on improved visibility guided by local bellwethers. We like companies that have strong orderbook backlogs and are fro...
7155 VITROX
0097 INARI AMERTRON BHD
INRI PENTAMASTER CORP BHD
PENT VITROX CORP BHD
VITRO GLOBETRONICS TECHNOLOGY BHD
GTB V.S. INDUSTRY BERHAD
VSI SKP RESOURCES BHD
SKP GREATECH TECHNOLOGY BHD
GREATEC CORAZA INTEGRATED TECHNOLOGY BERHAD
CORAZA SFP TECH HOLDINGS BERHAD
SFPTECH NATIONGATE HOLDINGS BHD
NATGATE TT VISION HOLDINGS BERHAD
TTVHB CAPE EMS BERHAD
CEB OPPSTAR BERHAD
- Desmond Chong Chee Wai
SKP Resources (SKP MK) - 1HFY24: Below Expectations; Headwinds Persist...
1HFY24: Below Expectations; Headwinds Persist But Fairly Priced In Below expectations. SKP Resources (SKP) reported a soft 2QFY24 core net profit of RM27.1m (+25% qoq, -42% yoy), bringing 1HFY24 core net profit to RM48.7m (-42% yoy) which made up 42%/44% of our and consensus forecasts respectively. The negative deviation was due to ongoing demand softness for consumer electronics products. The group has approved a final net DPS of 4.5 sen for FY23 (or DPR of 50%), and paid on 26 Oct 23.
- Desmond Chong Chee Wai
Technology - EMS: Bottoming Out From The Cyclical Downturn; Still Ampl...
EMS: Bottoming Out From The Cyclical Downturn; Still Ample Legs Of Growth Risk-reward calculus is tilting towards the favourable side after a Davis’ Double Killing both on EMS names’ earnings and valuations. We believe the conditions for turning more bullish on this sub-sector are ripe again stemming from an imminent cyclical recovery, peakish interest rate cycle as well as gushing trade diversion opportunities and supply chain entrenchment. We like companies that are frontrunners from trade div...
- Desmond Chong Chee Wai
Technology - Glass Half Empty Or Half Full? Does Not Matter As Long As...
Glass Half Empty Or Half Full? Does Not Matter As Long As It Is Refillable! Risk-reward calculus is tilting towards the favourable side after a Davis’ Double Killing both on the industry’s earnings and valuations. Coupled with an imminent cyclical recovery, peakish interest rate cycle and gushing waterfall effect from trade diversion and supply chain entrenchment, we believe the conditions for turning more bullish on the sector are ripe again. We like companies that have strong orderbook backlog...
7155 ATA IMS
8176 VITROX
0097 INARI AMERTRON BHD
INRI PENTAMASTER CORP BHD
PENT VITROX CORP BHD
VITRO GLOBETRONICS TECHNOLOGY BHD
GTB ATA IMS BHD
AIB V.S. INDUSTRY BERHAD
VSI SKP RESOURCES BHD
SKP GREATECH TECHNOLOGY BHD
GREATEC CORAZA INTEGRATED TECHNOLOGY BERHAD
CORAZA SFP TECH HOLDINGS BERHAD
SFPTECH NATIONGATE HOLDINGS BHD
NATGATE TT VISION HOLDINGS BERHAD
TTVHB CAPE EMS BERHAD
CEB OPPSTAR BERHAD
- Desmond Chong Chee Wai
SKP Resources (SKP MK) - 1QFY24: Below Expectations; Headwinds Persist...
SKP Resources (SKP MK/BUY/RM0.925/Target: RM1.13) 1QFY24: Below Expectations; Headwinds Persist But Fairly Priced In1QFY24: Below Expectations; Headwinds Persist But Fairly Priced In Below expectations. SKP Resources (SKP) reported a soft 1QFY23 core net profit of RM21.6m (+8% qoq, -42% yoy) which made up 16%/19% of our and consensus forecasts respectively. The negative deviation was due to ongoing demand softness for Consumer Electronics products. The group has approved a final net DPS of 4.5 s...
Technology - On A Better Risk-Reward Trade-Off; Milk It Before Cyclica...
On A Better Risk-Reward Trade-Off; Milk It Before Cyclical Upturn After a Davis’ Double Killing on earnings and valuations over the past two years, we see a better risk-reward trade-off on an imminent cyclical recovery. Most importantly, our recent Penang company visits revealed that the structural growth theme is gaining more traction due to the gushing waterfall effect from trade diversion and supply chain entrenchment. We like companies that have strong orderbook backlogs and are frontrunners...
7155 ATA IMS
8176 GLOBETRONICS TECHNOLOGY
7022 VITROX
0097 INARI AMERTRON BHD
INRI PENTAMASTER CORP BHD
PENT VITROX CORP BHD
VITRO GLOBETRONICS TECHNOLOGY BHD
GTB V.S. INDUSTRY BERHAD
VSI SKP RESOURCES BHD
SKP GREATECH TECHNOLOGY BHD
GREATEC CORAZA INTEGRATED TECHNOLOGY BERHAD
CORAZA SFP TECH HOLDINGS BERHAD
SFPTECH NATIONGATE HOLDINGS BHD
NATGATE TT VISION HOLDINGS BERHAD
TTVHB CAPE EMS BERHAD
CEB OPPSTAR BERHAD
- Desmond Chong Chee Wai
Technology - Twin Bonanza With Cyclical Recovery And Trade Diversion W...
Twin Bonanza With Cyclical Recovery And Trade Diversion Waterfall Effect Beyond the near-term earnings consolidation which was the story of yesteryear, our recent Penang company visits revealed that the structural growth theme is gaining more traction due to the gushing waterfall effect from trade diversion and supply chain entrenchment. Meanwhile, a cyclical recovery is in sight after rounds of inventory adjustments. We like companies that have strong orderbook backlogs and are frontrunners wit...
7155 SKP RESOURCES BHD
8176 ATA IMS
7022 GLOBETRONICS TECHNOLOGY
0097 VITROX
INRI INARI AMERTRON BHD
PENT PENTAMASTER CORP BHD
VITRO VITROX CORP BHD
GTB GLOBETRONICS TECHNOLOGY BHD
VSI V.S. INDUSTRY BERHAD
SKP GREATECH TECHNOLOGY BHD
GREATEC CORAZA INTEGRATED TECHNOLOGY BERHAD
CORAZA SFP TECH HOLDINGS BERHAD
SFPTECH NATIONGATE HOLDINGS BHD
NATGATE TT VISION HOLDINGS BERHAD
TTVHB CAPE EMS BERHAD
CEB OPPSTAR BERHAD
- Desmond Chong Chee Wai
SKP Resources (SKP MK) - 4QFY23: Below Expectations; Weaker Outlook Ah...
4QFY23: Below Expectations; Weaker Outlook Ahead But Fairly Priced In RESULTS Below consensus expectations. SKP Resources (SKP) reported a weak 4QFY23 core net profit of RM20.0m (-51% qoq, -57% yoy), bringing FY23 core net profit to RM143.1m (-13% yoy), which made up 92% of our and consensus forecasts respectively. On top of a seasonally weaker 4QFY23, lower volume loadings were observed from its customers as a result of global demand slowdown for Consumer Electronics products.
- Desmond Chong Chee Wai
Technology - Industry Gloom Deepens, But There Are Still Bright Spots
Industry Gloom Deepens, But There Are Still Bright Spots Despite growing evidence of an industry-wide slowdown, our recent Singapore roadshows revealed that there are still bright spots amid the US-China trade diversion. Our channel checks suggest that industrial EMS players are the front-running racehorses, with the waterfall effect also benefitting certain equipment and semicon players. We like companies that have strong orderbook backlogs and are benefitting from structural growth themes. Mai...
7155 ATA IMS
8176 GLOBETRONICS TECHNOLOGY
7022 VITROX
0097 INARI AMERTRON BHD
INRI PENTAMASTER CORP BHD
PENT VITROX CORP BHD
VITRO GLOBETRONICS TECHNOLOGY BHD
GTB V.S. INDUSTRY BERHAD
VSI SKP RESOURCES BHD
SKP GREATECH TECHNOLOGY BHD
GREATEC CORAZA INTEGRATED TECHNOLOGY BERHAD
CORAZA SFP TECH HOLDINGS BERHAD
SFPTECH NATIONGATE HOLDINGS BHD
NATGATE TT VISION HOLDINGS BERHAD
TTVHB CAPE EMS BERHAD
CEB OPPSTAR BERHAD
- Desmond Chong Chee Wai
SKP Resources (SKP MK) - 3QFY23: Within Our But Below Consensus Expect...
3QFY23: Within Our But Below Consensus Expectations; Weaker Outlook Ahead But Fairly Priced In RESULTS Within our but below consensus expectations. SKP Resources (SKP) reported 3QFY23 core net profit of RM40.7m (-12% qoq, -11% yoy). This bring 9MFY23 core net profit to RM124.4m (+5% yoy), which made up 74%/70% of our and consensus forecasts respectively. The results came in within our but below consensus expectations considering a seasonally weaker 4Q.
SKP Resources Bhd: 1 director
A director at SKP Resources Bhd bought 1,000,000 shares at 1.563MYR and the significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years c...
SKP RESOURCES BHD with less fundamental stars is reduced to Neutral
SKP RESOURCES BHD (MY), a company active in the Electronic Equipment industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analy...
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