FoundPac Group - Making Precision Engineering Parts

 

Company : FoundPac Group  

Business :

Design and manufacture of precision engineering parts and stencil for semiconductor industry. See below note. Factory located in Penang. More than 75% of their products are for export market.

 

 Company has been selected as Asian’s 200 best under a billion compay. Well done!

Financial information:

Net cash position of RM50 million with no bank borrowing.

 

5 years revenue

 

There is growth of revenue but droped slightly in FY 2021. Overall CAGR Revenue and PAT are growing.

 

Directors’ shareholding

 

Geographical revenue breakdown

 

Precision engineering parts are still the major contributor of 73.5% follow by laser stencil 20% and industrial equipment/machinery at 6%. The georaphical spread of revenue is pretty balance between Asia and North America and Europe. Gross profit margin is pretty good at >50%.

 

Major customers are as follow but no idea who are they.

 

Peer comparison

Latest quarter result

Revenue pretty much the same for Q4 and profit remain the same as Q3.

Prospect:

• Acquiring few companies to expand their business. See note below:
• Supplying parts to auto-assemblers (steering & gear systems)

 

Dividen:

Dividen is low and same as other semi-conductor companies.

Quick look at the Chart

Lots of speculation on this company. Price can shoot up 100% then dive 100% and up 100% again.

Tech stocks are high PE, low dividen and extremely volatile (driven by retail investors?). At time of writing, I don’t have any Foudpac shares.