Global silicon metal prices remained on a downward trend in Q2 2023, down on average by 30% from the beginning of the year, amidst persistent weakness in demand.
Market conditions are expected to remain challenging as the demand outlook from the automotive and silicones sectors remain uncertainty and worried.
Current PE: 140x (Price Rm3.17) - too expensive and overvalue
QR profit decline significantly sharp: 1. QR Feb 2021 - RM107m 2. QR May 2022 - RM54m 3. QR Aug 2022 - RM35m 4. QR Nov 2022 - RM18m 5. QR Feb 2023 - RM10m 6. QR May 2023 - RM9m 7. QR Aug 2023 - RM2m 8. QR Nov 2023 - (hundred thousand amount? you do the math)
Inventory increasing: 1. Q4 22 - 270m 2. Q1 23 - 354m 4. Q2 23 - 447m product in inventory exceeds the projected consumer demand result remains unsold and effect of quality degradation, involving cost to manage high inventory, working capital being tied.
Cash & Equivalents in current asset is decreasing: 1. Q4 22 - 127m 2. Q1 23 - 104m 4. Q2 23 - 71m
Cash Flow is negative and getting bigger: 1. Q1 2023 (-15m) 2. Q2 2023 (-82m)
Free Cash Flow is negative, business has more outflow than inflow which is company is losing money: 1. Q1 2023 (-77m) 2. Q2 2023 (-163m) Company clearly not generated enough revenue to cover the costs
HR minister V Sivakumar vows probe into unethical labour practices by First Solar's Malaysian contractors.
First Solar contractors in Malaysia had subjected migrant workers to unethical recruitment practices, including "the payment of recruitment fees in their home countries, passport retention, and the unlawful retention of wages."
no doubt going to drop atleast to rm1.. pe is too high.. no new orderbook.. and they only relying to one single customer that contribute 70% revenue from xiamen only.. could not make any growth because the top 3 owner are too slow...
Coraza: -3 consecutive low revenue and low net income in a row -low asset turnover but maintaining high inventory -the trend of lower profit from core operation can be seen since Q2 22, Q3 22 & Q1 23 -non operating income is higher than core income is seen as not a sustainable business -cash operating activities is negative -free cash flow is negative
Insider said because of Mi Technovation has obtained an Anton Piller Order from the Penang High Court which the order grants the authority to Mi Tech and their independent experts to access all the Edelteq premises to search for specific items relevant to the case.. It is now has impact and stopping all the factory operation.. Edelteq current status could not deliver major job and subsequently will delay to do any order from their customer.
Mi Technovation filed a writ against Edelteq to the Penang High Court on July 19, 2023, involves claims of breach of confidential information, copyright infringement, patent infringement, conspiracy to injure, and unlawful interference with trade.
Buy on rumours, sell on news. Do not wait when the news come, it will be too late.
Market reaction is forward looking, current market action discount everything. do not beat the market.