Sunday, 25 August 2013

VITROX: Q2FY13 业绩检讨 (Q2FY13 result review)

The latest quarter result looks 'disappointing' again. In fact, the company is running on correct path.


For this round, the focus should put on revenue and operating expenses. By looking at below table, you may find the answer. From what can I see, the order at least maintain at this level and there is room for further growth.


From the prospect highlighted by company, still looking good on its growth and mainly through expansion. Personally, I feel it still worth to hold or accumulate slowly if you are patient enough.

Source:$File/ViTrox%20-Q2'13.pdf (page 7)


A view on Profit Margin:
First, in order to capture better market share, lower the product price to make it more attractive is consider reasonable. This is a normal counter measure you have to pay off. If your product is consider cheap or reasonable, you will able to create the popularity and customer's confident. The return is to gain more selling volume and push up your earning.
Second, employee is the most important assets for the company. They are the one to make new product through R&D and make the company always stay at the front line in technology world. All this required continuous expenses. If product selling volume is low, the profit will lower by R&D expenses that already spend. At other word, when product selling volume is high, the same expenses will able to generate better revenue and the profit margin will increase accordingly. Profit margin will bounce back significantly when the market is recovering with better orders.

1. 本地顾客占了33%的盈利。其余的67%的盈利都是由外地贡献。台湾,墨西哥,还有一个国家(忘了)占了大部分。
2. 主要以美金交易。本地的市场有一半也是以美金交易。
3. 已经开始打入电子业以外的生意。比如:医药,车业,等等。
4. 新厂已经用了一半。(空间放机械,必须品。并不代表产能率。)
5. 重复性的收入,通常都是产品卖给顾客后的三,四年所提供之类的服务。现在贡献很少,四,五年后才会比较明显。

Additional information related to company:
1. Local customers captured about 33% of revenue. Another 67% is from oversea customers. Taiwan, Mexico, (forgotten another one), are the main contributors.
2. Transaction mainly is in USD. Half of the local sales also dealing in USD currency.
3. Product is not only applicable in E&E, but also in other sectors like medical, automotive, etc.
4. The new factory, half of the space already occupied. (Equipment and necessary things, but does not mean to capacity usage).
5. Contribution from recurrent income like after sales service & upgrade feature, is still low. Expect need a longer time, 4-5 years to see a better figure.


Ironman said...

虫虫大大,最近vitrox 的股价终于有起色了,从0.85上到 rm 1.00了。

TS S said...