Core Segment
91% from semiconductor.
Geographical contribution of Revenue
Financial performance
Income statement
Revenue increased 28% percent despite Circuit breaker moment.
Raw mat and subcon charges increased 129% !!! If Raw mat increase, it might means that Q3 business is good, that's the reasons company bring in more raw mat. But if increase is sub-con charges, then is different meaning. Anyway, not much info in the QR.
Balance Sheet
Cash increased 19mil. As I've mentioned previously, if the inventories were increasing it might means that next quarter sales should be good. But seems like the inventories were remain the same.
Goodwill contributed 26percents of total Assets. Must take note of this.
Bank borrowing drop 2mil and retained earning more than capital.
Cash flow
Operating cash flow dropped 7mil because of increase in trade receivable and decrease in inventories.
Cash and equivalent increased 28mil. But cash and cash equivalents in balance sheet drop 11mil?
Prospect
Management is confident that will remain profitable in 2020 and SEMI has projected there is a increase in demand.
Conclusion:
Semicon company is high cyclical company. If SEMI demand drop, this company will highly impacted and more than 91percents of revenue from SEMI. The only good thing for this company is net cash company and the demand for SEMI is increasing.
GDP: 50
PRC: 75
DCF value: Actual .778 / half .693
