KUALA LUMPUR: Semiconductor company Globetronics Techology Bhd saw more than RM500mil erased from its market capitalisation over the past five days following the decline in its contracts and weak earnings.
At 11.20am on Friday, it was down 22 sen to RM3.57 with 6.62 million shares done. It has fallen RM1.72 or 32.5% from April 22's closing price of RM5.29.
The FBM KLCI was down 6.71 points or 0.4% to 1,668.05. Turnover was 559.73 million shares valued at RM510.86mil. There were 186 gainers, 396 losers and 327 counters unchanged.
The market capitalisation was reduced from RM1.49bil on April 22 to RM1bil on Friday.
In its first quarter ended March 31, 2016, its earnings fell 78.5% due to the twin effects of declining smartphone sales and the volatile ringgit.
Group chief executive officer Datuk Heng Huck Lee was quoted by StarBiz that orders for the core sensor products of the group had dropped substantially in the first quarter.
The smartphone segment contributed 45% to 50% of Globetronics’ revenue for 2015.
For its first quarter ended March 31, 2016, Globetronics posted a net profit of RM3.6mil on the back of RM58.7mil turnover, compared with RM17mil and RM88.6mil a year ago.
Maybank IB Research has cut its earnings forecasts for Globetronics for the financial year ending Dec 31, 2016 till 2018 by 36%-52% on lower sensor demand and lower US dollar/ringgit assumption.
It revised its target price for the group to RM3.90, down by 43% and downgraded its call on the stock to Hold.
GTRONIC (7022) - Globetronics sees RM500m wiped out from market cap
http://www.thestar.com.my/business/business-news/2016/04/29/globetronics-sees-rm500m-wiped-out-from-market-cap/
