Yesterday result wasn't that bad, but QoQ fall.
Mikromb didn't state clearly the reason why Revenue and Net profit fall.
The main purpose of writing this journal is to summarize the future expansion plan that will benefit Mikromb.
It might take some time, and maybe drag down few quarter's performance, but if they execute successfully it will bring them to a new level. I mean revenue and profit.
According to Mikromb management team, as they said currently domestic market are facing price war. Their competitors are cuting price to increase sales, but Mikromb does not have any intention to involve in this price was.
And they also saying that domestic market actually already saturated and they plan to expand their market to foreign countries.
Below are summary of Mikromb's News
- Mikromb commands 50% of domestic market
- A cost of RM5 million will be spend next year for purchase of new equipment and machinery.
- In FY18, the group is expects to complete its move to the new factory in Shah Alam which cost RM11.7m.
- They provide Relay (断电器) to factories. In Malaysia, new orders and replacement orders contribute 50% each of revenue. In Vietnam, 90% of their orders are new order. (If more and more new factories are build in Vietnam, demand for relay will increase)
Technical
As this quarter's performance was out of invetors's expectation and market sentiment is not that good (FBMKLCI 1721) so currently most of companies will face "Raining circumstance" when bad result released.
Take note that Fong Si Ling became one of the shareholder of Mikromb, 0.53% of share.
Today (17/11/17)closed at 0.455, this can be set as a good support level.
Reference:
http://www.malaysiastock.biz/Blog/BlogArticle.aspx?tid=13350
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