Information captured from Sade Dayangku aritcle
A comparison of 3 M'sian Gem Featured In Forbes Asia's 200 Best
A comparison of 3 M'sian Gem Featured In Forbes Asia's 200 Best
| ELSOFT | VITROX | PENTA | |
| What Do They Do? |
- “Elsoft stands for ‘electronics’ and ‘software’”, and that
they’re “involved in doing the research, design and manufacture of
automated test equipment (ATE) and burn-in systems for the LED and
optoelectronics industry.” - Their customers are LED manufacturers who supply high-performance LEDs for application in smart devices, the automotive and general lighting industries. - Our second product division is in fact embedded controllers, which is actually one of the key initiatives by MDEC. We design the electronics controller board with embedded firmware, which is actually a micro-code intelligent firmware, so they can carry out the function. The application of that embedded controller is for medical devices like peritonial dialysis machines. |
- The company’s main business lies in automation, and that they have 2 sectors. (1) ATE which is all the test equipment for semiconductors IC (integrated circuit), auto electronics, smart devices, IoT, 3D sensors.” (2) Factory Automation System that’s more towards Industry 4.0. This is where factories want to replace manual labour with automation using robots - Almost-30 years of automation experience, their “put-out is mainly 80% exports to all the multinational corporations. The company serves customers in sectors ranging from “semiconductor, computer, electrical and electronics, pharmaceutical, medical devices, automotive, food and beverage, consumer goods to general manufacturing.” |
- It is a machine vision solutions provider that designs automated
vision inspection equipment and systems “ranging from back-end
semiconductor, PCBA SMT (printed circuit board assembly using
surface-mount technology), to final assembly inspection, and integrated
with Industry 4.0 smart solutions and system-on-ship embedded electronic
solutions - It currently export approximately 74% of goods and services to more than 24 countries. - ViTrox maintains a balanced composition of customers from a wide diversified end market such as telecommunication infrastructure, automotive, medical devices, aerospace, computing, and mobile devices |
| What’s Next? |
- one of our plans is to slightly diversify from our current
business. With our core competency of electronics and software
capability, we can actually venture into embedded controllers for
medical devices - Of course the one that we are already good at doing, we will also put in a lot of effort into it this year because there are lots of new products, like in the automotive market we have LED headlamp testers |
- double-digit growth every year |
- We will continue to stay focused on R&D, market expansion and
talent development” to help industries “achieve zero defects and
optimised productivity in their manufacturing. - We hope to grow beyond USD1B market cap in the next 5 years |
| In The Next 2 Years |
- Tan foresees a pickup in demand for 5G components for phones and
thus an increase in the demand for the equipment needed to test those
phones, too. This would mean “a lot of business for the whole industry”,
“so we actually see the next 2 years we are going for better times.” - Another sector he foresees will increase demand for electronics would be the autonomous cars sector, and Elsoft would potentially benefit from that as well since they make test equipment for electronics and sensors. |
- US-China trade war as an opportunity for growth. “Now we see
more enquiries, more interest coming from Chinese companies to buy from
Malaysia” and “the same goes for US, we see more demand and enquiries
from them, too.” - “we will try to capitalise on this trade war,” he said, calling it “trade diversion”. |
- We are extremely excited about the 5G, AI and Industry 4.0
development, in which these developments will transform the entire world
towards a digital economy - We believe many of our customers, primarily the OSAT (Outsourced Assembly and Test) and EMS (Electronics Manufacturing Services) in the semiconductor and electronics assembly industries will benefit from these megatrends. |
| FY2018 | |||
| Revenue ('000) | 78,150 | 394,684 | 422,201 |
| Profit ('000) | 39,917 | 105,484 | 57,116 |
| Profit Margin (%) | 51.08% | 26.73% | 13.53% |
| Future Result Projection (Estimation) for Year 2020 / 2021 | |||
| Revenue ('000) | 80,000 | 568,345 | 659,690 |
| Assumption | (Growth Resume and back to FY18 Level from 5G trend) | 20% growth in 2019 & 2020 | 25% growth in 2019 & 2020 |
| Profit Margin (%) | 50.00% | 25.00% | 20.00% |
| Profit ('000) | 40,000 | 142,086 | 131,938 |
| Current Market Cap ('000) | 581,215 | 3,188,361 | 1,695,315 |
| Forecast P/E | 14.53 | 22.44 | 12.85 |
| Future Market Cap (with P/E 20) | |||
| Future Market Cap ('000) | 800,000 | 2,841,725 | 2,638,760 |
| Future Stock Price | 1.20 | 6.03 | 5.56 |
| Future Market Cap (with P/E 25) | |||
| Future Market Cap ('000) | 1,000,000 | 3,552,156 | 3,298,450 |
| Future Stock Price | 1.50 | 7.54 | 6.95 |
| Future Market Cap (with P/E 30) | |||
| Future Market Cap ('000) | 1,200,000 | 4,262,588 | 3,958,140 |
| Future Stock Price | 1.80 | 9.05 | 8.34 |
https://klse.i3investor.com/blogs/GorengGorengEE/2019-08-27-story-h1479148841-A_comparison_of_3_M_sian_Gem_Featured_In_Forbes_Asia_s_200_Best_ELSOFT_.jsp
