Low debt company with debt-equity ratio and current ratio is 0.32 and 1.93 respectively as of December 2008
Company is under electronic sector which produces microchips and LED(light-emitting diode). Demand for microchips increases in tandem with increases in global demand.
As for LED, it contribute 20% to the company’s income and the demand by 2012 is projected to reach USD10b with average annual growth 20-25% as LED is cost effective, longer lifetime and environment friendly light unlike the ordinary light.
Global economic recovery will support the demand of both products.
Stable net profit from 2004 to 2008 namely RM22m to RM30m, except 2009 where profit dropped but has showed the uptrend from quarter to quarter to make up RM15.9m.
Net profit in first quarter 2010 was RM6.2m compare to only RM204,000. Therefore, result for financial year 2010 is expected better.
Two goverment agencies has a big number of shares in Gtronic namely EPF which has more than 25 million shares and Tabung Haji more than 16 milliom shares.
Share price started moving up since 19 April 2010 which closed at RM1.47 and by 23 April 2010 closed at RM1.68.
Two goverment agencies has a big number of shares in Gtronic namely EPF which has more than 25 million shares and Tabung Haji more than 16 milliom shares.
Share price started moving up since 19 April 2010 which closed at RM1.47 and by 23 April 2010 closed at RM1.68.
Technical target by Maybank, ranging RM2.03 to RM2.40
- Sabri Jalil
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