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$MI(5286.MY$
Increased foreign exchange earnings helped Zhengqi Technology make a huge profit of 27 million
Foreign exchange earnings increased, and Zhengqi Technology (MI, 5286, Main Board Technology) recorded a net profit of RM26.794,000 in the first quarter of fiscal year 2024, a sharp increase of 3.19 times over the previous year.
Revenue for the quarter ending March 1 increased 39.4% year over year to RM17,125,000.
The company explained that net profit performance in the first quarter was due to higher revenue and increased foreign exchange earnings due to the strengthening of the US dollar. Net profit surged to 25%, compared to 8.3% in the same period last year.
According to the statement, the semiconductor equipment (SEBU) business contributed 57.2% of revenue in the first quarter, while the semiconductor materials business (SMBU) accounted for 42.8% of revenue.
Despite facing challenges in an uncertain macro context, Zhengqi Technology will gradually build a comprehensive and diversified business platform, and will continue to work on continuous product innovation and development and product differentiation to enhance its competitive advantage.
Unless anything unforeseen happens, the company remains cautious and conservative about the outlook for 2024. Given the many short-term risks and challenges, it is probably just wishful thinking that the semiconductor industry has been expecting a full recovery in the second half of 2024.
Source: Nanyang Siang Pao
Disclaimer: This content is for informational and educational purposes only, and does not constitute any specific investment, investment strategy, or recommendation endorsement. Readers should...
Increased foreign exchange earnings helped Zhengqi Technology make a huge profit of 27 million
Foreign exchange earnings increased, and Zhengqi Technology (MI, 5286, Main Board Technology) recorded a net profit of RM26.794,000 in the first quarter of fiscal year 2024, a sharp increase of 3.19 times over the previous year.
Revenue for the quarter ending March 1 increased 39.4% year over year to RM17,125,000.
The company explained that net profit performance in the first quarter was due to higher revenue and increased foreign exchange earnings due to the strengthening of the US dollar. Net profit surged to 25%, compared to 8.3% in the same period last year.
According to the statement, the semiconductor equipment (SEBU) business contributed 57.2% of revenue in the first quarter, while the semiconductor materials business (SMBU) accounted for 42.8% of revenue.
Despite facing challenges in an uncertain macro context, Zhengqi Technology will gradually build a comprehensive and diversified business platform, and will continue to work on continuous product innovation and development and product differentiation to enhance its competitive advantage.
Unless anything unforeseen happens, the company remains cautious and conservative about the outlook for 2024. Given the many short-term risks and challenges, it is probably just wishful thinking that the semiconductor industry has been expecting a full recovery in the second half of 2024.
Source: Nanyang Siang Pao
Disclaimer: This content is for informational and educational purposes only, and does not constitute any specific investment, investment strategy, or recommendation endorsement. Readers should...
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Hello mooers! Check out the latest market dynamics of the metals and mining industry over the past week.
•Base metals: Industrial metals fall due to a lack of buying interest in China
•Precious metals: Gold, silver fell 2.1% and 4.1% respectively
•Bulk commodity: Thermal coal rose 8%
Spot Price Snapshot
Key Price Moves
$Copper Futures(JUL4)(HGmain.US$ and $Aluminum Futures(JUL4)(ALImain.US$, along with ot...
•Base metals: Industrial metals fall due to a lack of buying interest in China
•Precious metals: Gold, silver fell 2.1% and 4.1% respectively
•Bulk commodity: Thermal coal rose 8%
Spot Price Snapshot
Key Price Moves
$Copper Futures(JUL4)(HGmain.US$ and $Aluminum Futures(JUL4)(ALImain.US$, along with ot...
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US Stock Market Review 22 - 29 Apr 2024
$S&P 500 Index (.SPX.US)$ 1.71% DJI 0.8% Nasdaq 4.2%
$S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ achieved their best week since November due to strong earnings by Big tech companies and recent U.S. inflation figures.
Events to watch:
- Continuation of earnings season from tech giants such as Apple, AMD and Amazon
- 2 May - Federal Reserve’s next interest rate decision
- 3 May - Nonfarm payroll an...
$S&P 500 Index (.SPX.US)$ 1.71% DJI 0.8% Nasdaq 4.2%
$S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ achieved their best week since November due to strong earnings by Big tech companies and recent U.S. inflation figures.
Events to watch:
- Continuation of earnings season from tech giants such as Apple, AMD and Amazon
- 2 May - Federal Reserve’s next interest rate decision
- 3 May - Nonfarm payroll an...
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GENTING Genting - Can we go to bottom now? [CC ENGLISH ENG SUB]
$GENTING(3182.MY$
GENTING Genting - Can we go to bottom now? [CC ENGLISH ENG SUB]
$GENTING(3182.MY$
GENTING Genting - Can we go to bottom now? [CC ENGLISH ENG SUB]
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From YouTube
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Fellow Investors:
I have been telling everyone for quite a while that $Meta Platforms(FB.US$ and $Alphabet-C(GOOG.US$ are two of the best buys with the best balance sheets, along with deep and wide moats filled with crocs.
I urge investors when they can, to get out of companies that have no earnings, have no margins, because investing them is, at best, "betting on the come." And people who place their money in companies that are eventually supposed to do all these great things that they're not currently able to do, usually lose money, and are sorely disappointed. This is especially true of the most potently hyped companies.
I have been telling everyone for quite a while that $Meta Platforms(FB.US$ and $Alphabet-C(GOOG.US$ are two of the best buys with the best balance sheets, along with deep and wide moats filled with crocs.
I urge investors when they can, to get out of companies that have no earnings, have no margins, because investing them is, at best, "betting on the come." And people who place their money in companies that are eventually supposed to do all these great things that they're not currently able to do, usually lose money, and are sorely disappointed. This is especially true of the most potently hyped companies.
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$Microsoft(MSFT.US$ I'm forced to use MS Teams since it's what the DOD has purchased. I hate it. Confusing at times. We usually leave our cameras off because it bogs down if too many video feeds are running.
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Canada's government has officially excluded $Boeing(BA.US$ Super Hornet from the bidding for a potential C$19B (US$14.8B) contract to build 88 new fighter jets to replace the military's aging CF-18s.
The move by Public Services and Procurement Canada means $Lockheed Martin(LMT.US$ F-35 stealth fighter and Saab's Gripen are the only two aircraft still in contention.
The Super Hornet and F-35 were viewed by some observers as the only real competition because of Canada's relationship with the U.S., which includes using fighter jets together to defend North American air space, while Sweden - Saab's home - is not a member of NATO or NORAD.
Boeing saysit is "working with the U.S. and Canadian governments to better understand the decision and looking for the earliest date to request a debrief to then determine our path forward."
According to a report yesterday, Boeing is in the lead to win an order for nearly 50 freighter planes from Qatar Airways.
The move by Public Services and Procurement Canada means $Lockheed Martin(LMT.US$ F-35 stealth fighter and Saab's Gripen are the only two aircraft still in contention.
The Super Hornet and F-35 were viewed by some observers as the only real competition because of Canada's relationship with the U.S., which includes using fighter jets together to defend North American air space, while Sweden - Saab's home - is not a member of NATO or NORAD.
Boeing saysit is "working with the U.S. and Canadian governments to better understand the decision and looking for the earliest date to request a debrief to then determine our path forward."
According to a report yesterday, Boeing is in the lead to win an order for nearly 50 freighter planes from Qatar Airways.
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$Altimeter Growth Corp(AGC.US$ $Grab Holdings(GRAB.US$ Grab's earnings report puts a lot of emphasis on Adjusted Net Sales where Adjusted Net Sales = Revenue + consumer incentives and excess driver/merchant incentives. This will mislead investors and exaggerate the company's actual performance. Firstly, incentives-fueled growth is not sustainable due to cash burns and reliance on subsidies from external parties. Secondly, according to Grab:
Grab presents Adjusted Net Sales as a metric to compare, and to enable investors to compare, its aggregate operating results in the absence of excess incentives, which are intended to be temporary drivers of growth, and which Grab plans to reduce in the future. Grab’s management believes Adjusted Net Sales captures significant trends in its business over time.
Therefore, incentives should be removed from any form of Grab's performance analysis. Unfortunately, Grab's performance after removing incentives doesn't look optimistic. Grab's revenue decreased by 16% quarter over quarter, despite an increase in adjusted net sales of 8%. This suggests that incentives fueled the bulk of its expansion. According to the numbers, Grab upped its incentives by 27% quarter over quarter. However, the 27 percent increase in incentives resulted in just a 3.78 percent rise in monthly transacting users (MTU) and a 2.6 percent increase in GMV per MTU. This has several consequences. To begin, the considerable increase of incentives but just a modest increase in growth indicates an aging market.
On the other hand, with Uber as comps, Grab's valuation of $60bn implies a (revised) CAGR of 35% + a full recovery of its ride-hailing business to pre-pandemic levels. This causes a discrepancy between its valuation and growth expectations. A bear-case scenario will see Grab's share price mirror $Zoom Video Communications(ZM.US$ decline after reporting slowing growth.
Let's examine whether Q3 performance can turn things around for Grab.
Figure 1: Grab's 2021Q1 Quarterly Performance
Figure 2: Grab's 2021Q2 Quarterly Performance
Grab presents Adjusted Net Sales as a metric to compare, and to enable investors to compare, its aggregate operating results in the absence of excess incentives, which are intended to be temporary drivers of growth, and which Grab plans to reduce in the future. Grab’s management believes Adjusted Net Sales captures significant trends in its business over time.
Therefore, incentives should be removed from any form of Grab's performance analysis. Unfortunately, Grab's performance after removing incentives doesn't look optimistic. Grab's revenue decreased by 16% quarter over quarter, despite an increase in adjusted net sales of 8%. This suggests that incentives fueled the bulk of its expansion. According to the numbers, Grab upped its incentives by 27% quarter over quarter. However, the 27 percent increase in incentives resulted in just a 3.78 percent rise in monthly transacting users (MTU) and a 2.6 percent increase in GMV per MTU. This has several consequences. To begin, the considerable increase of incentives but just a modest increase in growth indicates an aging market.
On the other hand, with Uber as comps, Grab's valuation of $60bn implies a (revised) CAGR of 35% + a full recovery of its ride-hailing business to pre-pandemic levels. This causes a discrepancy between its valuation and growth expectations. A bear-case scenario will see Grab's share price mirror $Zoom Video Communications(ZM.US$ decline after reporting slowing growth.
Let's examine whether Q3 performance can turn things around for Grab.
Figure 1: Grab's 2021Q1 Quarterly Performance
Figure 2: Grab's 2021Q2 Quarterly Performance
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