I only can say not at bottom just back to normal with current revenue. but not at sky. remember share price always move in front. so at this level is still safe. but my price is at 0.7++ range, so still can hold and wait to see.. wait for coming dividend payout first should have 3 cents.

?Trading Idea: SKP Resources Berhad (Good Opportunity) ?

BUY/LONG: RM1.10

SL: RM0.99 (10.00%)

TP1: RM1.24 (12.73%)

TP2: RM1.43 (30.00%)

Reason: SKP Resources Berhad is showing a symmetrical triangle formation, indicating a potential breakout. Price is at the apex of the pattern, supported by EMA levels, and retracing near the Fibonacci 61.8% level. This suggests further upside potential with strong support near RM1.03, making it an attractive opportunity for entry at RM1.10.

Financial Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. Trading involves risk, and past performance is not indicative of future results. Always conduct your own research or consult with a licensed financial advisor before making any investment decisions.

unfortunately two local headwinds ahead which could challenge its margins and worth to monitor - impact of higher minimum wage starting Feb'25 and higher electricity tariff starting Jul'25. Impact will be negligible if there is a cost pass through mechanism in place / contracts with customer.

Lots of “interesting” QR3 results by end of this month. However, full effect of US tariffs (wef 1/8/25) on manufacturers exporters can only be seen in QR4 2025 (February 2026) or QR 2026 (May 2026) onwards (after initial front-end orders for warehousing by US customers).

externally - there should be trade diversions too. and hopefully there will be meaningful outcome from US supreme court review on Trump's blanket tariffs. internally - will be worth it to monitor the margins for skp. its hovering near mid single digit and could slip towards lower single digit if there is no cost pass through mechanism.

VSI = VS Industry? Something else is brewing in VS perhaps. As for skp - trade diversions into Malaysia will benefit the local players. Seeing some margins hit due to onboarding of new customer too. The good news is - it has pretty decent balance sheet; in net cash position.

Q4 2025 QR onwards will be more reflective as that’s when recent increases in cost of doing business in Malaysia in 2025 and strong RM will have the maximum impact. Also, US reciprocal 19% tariffs full impact will be felt by exporters in Malaysia.

USD FX no impact on SKP as their previous QR indicated all pricing of their sales to their main customer in RM unlike other exporters. However, when RM strengthens significantly, it will make Malaysia goods less competitive vs other regional competitors.

yes no single factor is right or wrong.. I'm not saying I don't believe but just saying epf buying should not be the main factor for buying a share. I have small position and just waiting for the right timing to add.

skpres has pretty decent balance sheet, ~5% dy and in net cash position. cost pass through mechanism will be key for its margins to be at mid to high single digit. waiting to see how its doing at the back of higher electricity tariffs.

Their margin always in double digits (low). High single digit should not be a problem unless customers (concentration risk) start to negotiate for cost down despite cost increases & aggressive new competitors with lower pricing. The positive is their strong balance sheet (ample cash).

triple bottom price technically, tim foo. the report has just been released. Did not see any wow or omg factors :) flattish margins pressure or stable as the company pointed; no growth or deterioration to me. balance sheet remains strong and mgmt is spending capex to onboard new customers and pcba/moulding capabilities; have not seen major customer increasing orders and new customers yet to ramp up. What it meant here is that risk of single customer is still high while risk mitigation for single major customer via onboarding new customers/capabilities have yet to bear fruits; patience needed here. If I may summarize it, plus: financially strong, dividend backed by real earnings, flattish margins, no negative surprises from major customer; negative: not in growth phase, and single major customer risk is still high.

As expected, net margins will be maintained at mid digit in QR2 & possibly FY 2026. QR3 & QR4 can be even more challenging amidst the weakening global economies as difficult to pass on cost to their major single customer due to demand changes and product competitions.