Friday, October 25, 2019

What the results of Vitrox and Unisem are telling us

When I write this article, I guess some have yet to realise the consequence of how the trade war will affect some of the companies.

Just read here.

Vitrox and Unisem, among the larger listed semiconductor companies in Malaysia just announced poor results.

Vitrox, which has been one of more better performing companies in Malaysia over the last few years, just announced a close to 40% drop in revenue against the similar quarter last year. Unisem is worse, it just registered a poor quarter, moving into losses.

Vitrox's case, I think the recent quarter is more of a everything just went awry in a quarter where, many companies would want to reduce their purchases of machineries due to the uncertainties. As for Unisem, it is a packaging house (OSAT) which provides assembly for customers who sells chips to the final product assembler.

As mentioned in my previous article, the value chain for Unisem would not augur well for this type of companies i.e. Inari, Unisem, MPI. Unisem has foreseen this and in the last year, it partnered with a Chinese company to address this situation.

The system or box build guys will have a different situation in the long run as one can see in VS Industry's result.


Anonymous said...

May get your view on wce? Will u subcribe to the RI? And will tis the final fund raising exercise? Thanks

felicity said...

I am subscribing

felicity said...

I believe this is the final fund raising given the structure they have done on the rights. If this session is not sufficient, WCEHB's management or directors would have increased the warrants.

Kelvin said...

If I am not wrong. In the AGM they have mention this would be the last fund raising exercise before completion of highway. I hope they will post the AGM minutes soon

felicity said...

The way the exercise is designed, it feels like a last round. They are putting it the exercise into 2 tier. Hence, encouraging investors to put in additional funds from the convertible preference in the first year. Similarly, the warrant is also 2 tier.