The Borneo Post (Sabah)

Globetroni­cs’ q-o-q prospects looking up as demand strengthen­s

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KUALA LUMPUR: Globetroni­cs Technology Bhd’s (Globetroni­cs) quarter-on-quarter (q-o-q) growth is expected to remain strong as analysts expect demand for the company’s products to remain solid until year-end.

In a report, the research arm of Maybank Investment Bank Bhd (Maybank IB Research) pointed out that the commercial is at ion of the light sensors in a major North American smartphone model, launched in September 2017, lifted Globetroni­cs’ quarterly revenue back to 2015’s levels (more than RM80 million) and its third quarter of 2017 (3Q17) earnings to RM14 million (a 141 per cent q-o-q increase, 57 per cent year-on-year increase).

“We expect the q-o-q strength to persist into 4Q17 to cater for the initial demand of that newly-launched smartphone,” it opined.

Nonetheles­s, it said, volume loading may taper in 1Q18 due to slower-than-expected response for the two lower-end smartphone variants alongside a limited supply for the high-end variant (capped by certain component supplies).

It further pointed out that soft demand might result in a production cut by 2Q18.

It also highlighte­d that pressures on its key client migth weigh down Globetroni­cs.

It exlained, despite much stronger quarterly revenue (a 45 per cent q-o-q increase, 79 per cent y-o-y increase to 263 million euros), Globetroni­cs’ Singaporea­n-based sensor customer, AMS AG’s headline earnings only hit 20 million euros in 3Q17, narrowing 9M17 losses to 14 million euros (versus 89 million euros profits in 9M16).

“Losses from severe gross profit margin compressio­n (down 16.4ppts to 37 per cent in 9M17) alongside stress on ams AG’s balance sheet (100 per cent net gearing as at end-September 2017) may eventually put pressure points on its suppliers, Globetroni­cs being one of them.

“Amid higher volume loading, cost-down pressures may also be present. Taking this into account, we lower overall sensor average selling price forecasts by six to seven per cent leading to lower FY17 to FY19E core net profit by five to eight per cent,” Maybank IB Research said.

All in, the research team pegged a ‘sell’ call on the stock.

It explained, “Top-end of consensus FY18E net profit remains at RM121 million (compared with low-end of RM59 million) despite disappoint­ment from the gesture sensor which was not bundled into the recent North American smartphone launch. For this, we see risk in consensus expectatio­ns for FY18.” KUALA LUMPUR: Damansara Realty Bhd’s wholly-owned unit, Metro Parking (M) Sdn Bhd (Metro Parking), has secured parking facilities management contracts worth RM1.1 million for the Dataran Maybank, Etiqa Twins and Akademi Etiqa buildings in Kuala Lumpur.

In a statement yesterday, it said the new contracts for a 36-month tenure were a boost to Metro Parking’s growing order book for parking management services in Malaysia and the region.

For 2017, Metro Parking bagged RM73 million worth of parking management contracts, including RM8 million for Malaysia, RM8.5 million for the Philippine­s and RM56.6 million for Singapore.

“We are encouraged by the number of parking management contracts secured under Metro Parking ever since we reinvigora­ted this business segment. We have increased our parking management contracts by 12 per cent year-to-date, compared to same period of 2016,” said group chief executive officer, Brian Iskandar Zulkarim.

The group aims to strengthen its position in this area further, having already clinched the top three position as the preferred car park management company in Malaysia, and the foremost spot in the Philippine­s.

Metro Parking offers a wide range of parking management related services that include profession­al car park management, design and consultanc­y. — Bernama

Metro Parking secures parking management contracts worth RM1.1 mln

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 ??  ?? Globetroni­cs’ q-o-q growth is expected to remain strong as analysts expect demand for the company’s products to remain solid until year-end.
Globetroni­cs’ q-o-q growth is expected to remain strong as analysts expect demand for the company’s products to remain solid until year-end.

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