Introduction
A service provider of advanced precision cleaning and surface treatment for semiconductor process chamber parts and repair and maintenance services for the oil and gas industry.
Financial Summary
In Year 2020 AR, Frontken mentioned that the Oil and Gas sector due to Covid is delaying the repair and maintenance. Although YR 2020 has lockdown, the company still able to generate high revenue.
Segmentation
Customer mainly on Taiwan and Semicon is the biggest contribution to the group revenue.
Total Revenue - 368mil, taiwan contributed - 63percent of the revenue.
Major customer - TSMC , contributed 132mil, 35percent of total revenue!
Forward looking
The company is optimistic on the future prospect.
Q1 2021 Report (Jan to Mar 21)
Income statement
First glance at this report, nothing to criticize. Revenue increased 22 percent and PBT increased 42 percent. Profit margin before increased from 30% to 34%.
Balance Sheet
Cash rich company with 300millions on hand with no debt. NAV remains the same.
Healthy cash flow, generate positive operating activities and FCF.
My opinions
Current price - 2.98EPS - 2.19 x 4
P/E = 34
Dividend - 0.04
Dividend yield - 1.34%
Fair value with 13percents CAGR - 0.856.
Overvalued stock, major customer TSMC contributed 35%.
Very important to look at CAPEX, due to technology change everyday, company need to keep upgrade their technology to ensure they able to follow to trend else will be eliminate by other competitors.
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