小资女向前冲（大马股市）

Hello EG, nice to meet you again!

Last time I read about you was 2016 Dec.
Half a year already, how are you

Erm~your QoQ decrease by 30.59%, YoY increased 25.8%

For revenue, it might be considered as upper level revenue compared with last few years/quarters

Besides, the higher net profit for last 2 quarters were due to higher customer demand

For this quarter, foreign currency translation difference for foreign operations was contribute lower amount.

I think it might be due to strengthen MYR against USD

Current quarter released reflected Dec-March's result

And as you can see from below graph, USD against MYR drop from the highest 4.459

Net profit margin pretty low for this quarter 2.08% 

QoQ revenue decreased 2.52%, however QoQ net profit decreased 30.59%

YoY revenue increased 66%, YoY net profit increased 25.82% 

Technical

EG's share price flow between RM0.8- RM0.913. Consider lower risk

Current Share price (2/6/2017) RM0.85, PE:7.56

Personally think ODM future prospect is positive however with bad performance, it is difficult to catch investor's attention.

May put on watchlist and wait for a better result.

Risk

- Uncertainty of EG's order (Vs's annual report would mention about their order from client, however EG lack of this field of information.Probably business haven't stabilize) 

Another Famous EMS company - VS

- Electronics manufacturing services (EMS) giant VS Industry Bhd has secured a three-year contract worth at least US$82mil (RM326.3mil) to design and make a new model of coffee brewers. (EMS is contract based)
- At VS Industry, we are increasingly moving up the value chain to be the ODM (original design manufacturer) producer instead of just being an OEM (original equipment manufacturer) producer. This helps to forge a stronger bond with our customers.”

Blog:

http://www.sharetisfy.com/2017/04/eg-8907-eg.html

http://www.sharetisfy.com/2017/04/eg-8907-eg.html

http://investmentkai.blogspot.my/2016/05/8907-eg-industries.html

http://www.thestar.com.my/business/business-news/2016/08/16/vs-industry-bags-rm326mil-deal-to-make-coffee-brewers/    (VS news)