KLSE:JFTECH
JFTECH (0146) - JF TECHNOLOGY BERHAD: WE BRING POSSIBILITIES
JF Technology Berhad (0146) Shariah Compliance
Before go into details, please visit their website for some understanding of what they do here: http://jf-technology.com/company-profile/
You are highly recommended to view their website to learn more here:
http://jf-technology.com/market-applications/
http://jf-technology.com/products/
We can see that the growth of IC devices demand will definitely related to JFTECH business.
I guess everyone know about VITROX, just break new high, however JFTECH has been lagged behind and its time to let everyone know !
JFTECH products also protected as they have filed 9 patents which can last for 20 years. (no body can copy)
2016 Annual report also mentioned that they have product pending patents.
We have more reason to like this company:
Why I like this company? Will it be next LTA's IQGROUP?
Yes this company is related to latest technology and market trend of INTERNET OF THINGS (IOT), AUTOMOTIVE, MOBILE, SEMICONDUCTOR, yes its the most explosive business as we can see from recent big uptrend from MPI, KESM, VITROX, UNISEM, PENTA, IQGROUP, DUFU, NOTION, MMSV and many more, all at least gone up 50% to 100%.
can refer: this link
(3 good reason for JFTECH growth, growing of Internet of Things, Car required more chips, and benefit from weak RM currency !)
There are totally no doubt that any stock that related to this field should can do well.
Let us look at their recent result first:
If we look at the result closely, past two quarter revenue has increase, and profit also doing better compare to last year. If coming May result also positive, going attract a lot of attention as last year same quarter are not making profit, many will see a very big % jump up in profit. So do look into this company closely.
This is also how we cover JHM (0127) 2 years ago when only RM 0.40+, when still no body really mention about it. Read Here <------ br="">
So is the company value at high price?
First quarter net profit : RM 1.491 mil = EPS 1.18
Second quarter net profit : RM 1.171 mil = EPS 0.93
From here, we have to estimate the future already ! We use very low profit of RM 1.00 million will do. If doing better, it's going to greatly impact the PE and stock price.
Third quarter net profit estimate : RM 1.00 mil = EPS 0.79
Fourth quarter net profit estimate : RM 1.00 mil = EPS 0.79
Total EPS = 1.18+0.93+0.79+0.79 = EPS 2.853 in RM its RM 0.02853 per share.
RM 0.02853 it's about PE 28 if based on RM 0.80. However if coming two quarter able to deliver better than just RM 1.00 million net profit, it's expect to much lower down the PE value !
(for example if Q3, Q4 post RM 1.5 mil, total EPS = RM 0.0449. Price RM 0.80/EPS 0.0449=PE 17 only.) If earning more than RM 2.0 mil, then the price definitely big rocket up.
What about its balance sheet? Any debt?
It's Nett Cash company ! Nett Cash Company always can see higher price value in stock market. Therefore PE higher also normal. As long as they can improving profit.
To make sure they can grow and got good business, we have to know who their customer. After some studies, finally we found their customer are all very familiar name:
Just look at familiar name INARI, AEMULUS, UNISEM, CARSEM, AVAGO, and many more strong leader in the market.
UNISEM (M) BHD ! AEMULUS BERHAD ! This two are familiar name as it listed at BURSA !
FORD, BMW, DELL, CANON, SAMSUNG these few are International BIG Brand and all very well-known, especially SAMSUNG that has just launch its GALAXY S8 on 29/3/2017, am sure they need a lot of test for their chip and application this round to ensure not going to repeat the S7 explosion problem. BMW 5 Series also just launch new model last week, which integrated more function and technology with their touch panel. (JFTECH specialty is doing testing of chips and sockets).
CARSEM (M) Sdn Bhd ? What is this? Let me tell you !
Yes it's effectively belong to MPI Pacific Berhad ! See the stock price rocket so much already know how strong MPI and how good business it is. Refer to here: Link
Well, how about JFTECH stock price movement?
Still not yet break previous high ! It has reach lowest at average of RM 0.55 and been sideways for almost one year. Recently we start to see volume coming in as maybe some of the smart investor start to notice this company ! It's still not yet too late as the price not yet reach previous high and the volume only started to growth active. I see the future of this company can easily surpass previous high !
Ever since listed on year 2008, it has reach as high as RM 0.86 and correction down to about RM 0.50 mainly due to the legal case. (Not due to business slow down so its Opportunity !!) According to annual report, the legal case only affect one single product, and others are still doing fine. And the legal case might possible end this year too.
What else is possible in this company?
MOVE TO MAINBOARD !!
JFTECH still ACE BOARD, and the BOSS is looking opportunity to go MAINBOARD in future.
Read here: http://www.theedgemarkets.com/my/article/jf-technology-eyes-main-market-transfer-2018
This mean from now to year 2018, it's highly possible the company doing better and move to mainboard as plan ! If can move to Mainboard, the price easily up 50% !
Well we got some more info about JFTECH for you to study.:
JFTECH subsidiary's JF Microtechnology has been grand by MIDA as PIONEER STATUS, which mean they able to enjoy tax allowance ! Save cost !
Last and not least, let us view what the Boss view in coming years:
New product - Mean this company is not sleeping and keep growing.
IOT - The company also riding on the IOT waves.
Automotive market - One of the hotest market they capturing.
Faster Pace in FYE 2017 - Profit should can sustain or even grow fast.
As a conclusion:
1. JFTECH business are related to the most exciting sector, IOT, SEMI-CON, AUTOMOTIVE.
2. JFTECH products are very unique and owned many patents that other can't copy.
3. JFTECH are doing international business. Unlimited opportunity.
4. JFTECH nett profit highly potential to maintain or even increase.
5. JFTECH is a nett cash company, very low debt.
6. JFTECH customer from all very strong company, highly visible and sustainable business.
7. JFTECH stock price has been reach bottom and sideways consolidate 1 year and never fall further.
8. JFTECH got chance move to mainboard in year 2018.
9. JFTECH are beneficiary of weak RM, RM expecting to remain low.
10. JFTECH subsidiary got tax allowance, pioneer status by MIDA.
12. JFTECH 2016 Annual Report sound highly positive towards year 2017.
13. JFTECH just covered by LTA on APRIL!
I am sure JFTECH will be a growth stock and will shine in future with so many good reason.
My own personal "hope" for short term price to reach RM 0.85, mid term hope RM 1.18, long term hope RM 1.72.
Above are purely sharing information that might have errors cause by human mistake, miscalculation, and for education and personal reference only.
JFTECH (0146) - JF TECHNOLOGY BERHAD: WE BRING POSSIBILITIES
http://bursalogicanalysis.blogspot.my/2017/04/jftech-we-bring-possibilities.html
