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q3 in two weeks time. lets see how much is the contribution from US, MY and SG geo. Yet to see any uptick from SG geo since SFP Integration Pte Ltd was registered early of last year.
you have no control over the market force, jason :) buy it if you are happy with the numbers in the report and sell it vice versa if you are not happy with it.
q4fy24 performance bomb aka the performance that raises eyebrow due to ECL and high receivables from China customer. Management responded that the customer will pay back. Fast forward 3 qtrs later, receivables collection made good progress. In fact, total receivables based on the latest qr is lower than the total recorded as of Dec'24.
Previously - mgmt mentioned that the China customer will pay back and the results showing mgmt delivered what they committed. Next - mgmt mentioned the following in the latest report "The Group has received forecast commitment that are favourable from few existing MNC customers in the semiconductor industries with delivery expected in coming year. Additionally, there are also new potential MNC customers in new industries that the Group is now engaging, such as green energy, defense and aerospace industries with forecast delivery in coming year.
We will know within the next two quarters whether the forecast commitments will translate into revenue or customer deposits, and whether management will deliver once again.
Cleaned thoroughly and rebound. Fully retraced and double bottom. A safe 3 months for the trends to build up at the back of recovery momentum; lower receivables, lower debt, higher cash, improved automation segment though insufficient to cover for the manufacturing order loss from ending China customer, slight uptick of inventory at the back of customer commitments. If customers commitments materialize, the uptick in inventory will be able to support the incoming revenue.
so far so good, hktee. I have no control over market force :) I started position after the disastrous q4fy24 and the factors that raises eyebrows have been resolved positively 3 qtrs later; seeing improvement each qtr if you will. The next phase of recovery will be revenue growth. It is half the manufacturing and double the automation revenue as of q3fy25 comparing to q3fy24 :) And we know the lower manufacturing revenue is due to exiting China business / the problematic customer. Mgmt mentioned in the latest qtr with regards to MNC customers commitments. Will observe whether the commitments will be translated to revenue/deposits in the next 2 qtrs at the earliest.
depending on individual risk appetite / risk mgmt, waller. mr. market has yet to reflect the improved financial situation of sfptech; if you were to compare the financial disaster in q4fy2024 versus the latest performance in q3fy2025/the trajectory since then. not expecting to fall back into the same crisis as (1) no longer accepting orders from the China customer (2) changes in senior leadership following the financial disaster.
we have seen double digit growth prior to the financial disaster and growth has scaled down by half (single digit) from exiting the China customer's business. The next challenge moving forward is the revenue growth. and mgmt has mentioned in the latest report with regards to its MNC customers' commitments and new industry that they are tapping into. Though it is no longer in financial crisis, it may stay as penny stocks unless mgmt can convert their MNC customers' commitments into revenue/deposits - sustainable revenue is not enough to move it up and revenue growth is needed for positive rerating.
