Let's do a recap of what has been discussed thus far
Financial Statement Analysis
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Positive |
Negative |
|
Very high profit margin of 35% to 65% |
Profit margin might vary due to 4 different segment margin in the range of 25%, 40%, 65% and 90%. However, sales of hardware often constitute a very small part of total revenue. |
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Net cash no debt |
High P/BV |
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High ROE |
Its propriety software is worth much more than actual value, hence possibly inflating ROE. |
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Highly cash generative, high percentage of profits are converted into hard cash |
Company has been doing buyback, acquisition due to chunk of cash at disposal. Might not be able to generate positive ROI |
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Quarterly Dividend |
Subjected to currency fluctuation as earnings are reported in MYR |
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Positive |
Negative |
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Banks and vendors are likely to maintain a working relationship of at least 10-15 years due to the high cost ... |
