CUSCAPI (0051) - Cuscapi - First Tale Sign of Recovery (3) - YiStock
I have written an introduction of Cuscapi and its ajisen ramen contract. Below is the link:
https://klse.i3investor.com/blogs/cuscapi/118258.jsp
Now, let check the condition after Q1 2017:
Key Observation:
(1) The company highlighted that they are on track to deploy the 25,000 REV tablet and target to complete by end 2017.
(2) They are also pilot testing the REV with 3 new potential customers.
(3) Based on below Q report, can see the Inventories has gained a total of RM 12 million from Q4 16 to Q1 17. I believe the increase is due to the tablet. I believe they are taking progressive purchase method. Bulk purchase should allow them to get substaintial discount.
(4) cash increased in mainly from the proceed from private placement.
(5) The previous guidance from management saying that they are targeting Q3 17 to complete the deployment. In latest Q1 17 report, the latest guidance is Q4 17. I believe there were some delay in the deployment which resulted in the low revenue contribution in Q1 17 as per below.
Worth to note that there is a drop in revenue from china segment in Q1 17. I speculate 2 possible reason.
First, ajisen was their customer and now converting to recurring base. So, previous model/ revenue no longer invoiceable.
Second, their former china customers will switch to REV on recurring basis and this is pending annoucement.
Scenario 1 is much possible.
And because of the delay, i suspect the RM 655k did not reflect full Q1 2017 and Q2 should at least give RM 2.8 mil revenue from china segment , which likely make cuscapi quarter result to further narrow the loss, or at least breakeven.
There are many question remain unclear. But, the tale sign is there and i will bet on it.
Cheers,
YiStock
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CUSCAPI (0051) - Cuscapi - First Tale Sign of Recovery (3) - YiStock
http://klse.i3investor.com/blogs/cuscapi/124791.jsp
