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HK-just curious to ask after reading JHM (Led Supplier) news. Is D&O supply LED to Proton/Perodua? If company not supply to local brand automotive, how can company compete in China automotive in long run especially EV cars.
Green, as i know from some info about D&O LED market trend, they have indirect business with proton & perodua, meaning that they might be supply it by 3rd party supplier, D&O major customer is from China based Car maker, those car maker consists of German and Japan as well as America, but I am skeptical about the competition in China, is it China lag of technology of making high end LED?
HK-because I don’t see any news or remarks in their Earning report saying company supply to Proton/Perodua or Geely in China. By right, if they do, this should be the best selling point in their report.
JHM is machinery and fabrication company, LED segment is just a portion of its business margin, i dont think their LED segment would be their biggest earning, its share price is on deep down in the moment
Green, as i say, they indirectly supply to local car maker, or Geely imported LED direct from China. Actually China investment at our country do not contribute much, bcoz they imported labour and material direct form China and our govt do nothing to stop it.
My observation is D&O could be selling more volume with cheapest price to window dressing the account.This causing the margin drop. This lead me to think of missing price competitive advantages in China. In short, sell with discount to maintain the volume with customers.
HK-what is the comprehensive income RM2478k in report? I didn’t find any further info. Could this be the government incentive? Without this income, the profit even lower.
Green, as i know that comprehensive income is refer to unrealized gain or loss of income, might gain from foreign exchange currency, ESOS exercising or from short - mid term investing gain and loss. D&O is at Melaka Free Trade Zone, definitely cover from the govt benefit.
Green, its latest QR shows that its reserve is positive at RM 20.5M, but If D&O is on the growing path of business, I do not think that it current reserve and inclusive other income would enough to boost the business, maybe future they would issue more share or announce share split.
I always 1st look at the pure operating margin, if keep dropping that means company start loosing ground in their business. That also could be due to mismanagement of COGS or expenses. It reflect the business cost structure change.
yes, u are right, but technical, market driven by supply and demand, eventhough good fundamental company, its stock price badly undervalue, but price momentum very low, PE less than 10.
