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They are managed to contribute more from their largest client, SAM past 4 years. Why SAM not to fabricate the precision components and assemble into finished products by their own since they are in the same industry?
Will SAM continue to give business to them in future if demand cycle ends? SFP may be a temporary subcontractor if no business given in future.
That call the business relationship dude, if SAM can do it themselves then they would do it at the first place already, business is not a one man show dude. There is alway risk doing business, if scare of taking risk then don’t step into it, leave it.
Yes yes and yes. Good questions but here nobody cares because PE low, doesn't matter whether is sustainable or not, as long low PE for semicon stock, first day listing can fly higher. Sometimes, when you got these kind of questions, you should already know why it is sold at such low PE. Quality goods don't come cheap.
Probably due to capacity, equipment, man power constraints.
Most probably capex cost is much higher than sub to supplier for doing this.
Orders won’t wait you until you completed capex + machines set up + man power training.
That’s why sometimes sub job to others more beneficial. Win win win situation.
