Is Guangyu Industrial favored?
Although Guangyu Industrial's net profit for the first quarter of FY2024 shrank by 31.24% year-on-year to RM9.7 million due to falling demand from existing electronics manufacturing services (EMS) customers, the overall performance is still optimistic by the market.
Due to sluggish demand in the computer peripherals market, the revenue of the electronics manufacturing (EMS) division, which contributed 80% of revenue, shrank 19%, and customer A's load volume decreased, and only 30%-40% of the required orders were delivered in the first quarter.
Kennag Investment Bank Research still loves Guangyu Industrial. The main ones are 1) comprehensive skills, which are the preferred foundry for multinational companies, 2) as a foundry for Hon Hai Group, which has competitive advantages, and 3) diversified customers.
Looking ahead to the second quarter, experts believe that with the settlement of IC supply, and the completion of the renovation of Plant No. 5, which operates in June and produces all orders from Customer A, the second quarter's performance will improve. In addition, the company has begun to produce orders from small customers, namely drones, oral cancer diagnostic machines, smart homes, and industrial sensors, which will increase revenue by 8% to 12% in FY2024.
Source: Nanyang Siang Pao
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