Eugene Wong's comment on MCEHLDG. All Comments

Eugene Wong
6 Like · Reply
If only look at profits wud prob panic sell on Monday, but if u look at operating cash flow, it's been going up 9MFY24 ocf is ady 30m vs fy2023 ocf 20m, fcf also 9mfy24 7.4m vs fy23 5.2m. Of course most of u won't care, cos you all just in it to make quick bucks, fomo buy when price goes up and panic sell when price drops, creador wouldn't have invested if this company wasn't good
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Eugene Wong
its good enuf, MCE has both proton and perodua contracts, its competitor betamek only has p2 and havent got contract since jun 2023, a 3 year contract is fine, cos cars usually facelift ard that time, now just seeing if they can win proton contract for their EV also, perodua and proton also not stupid, would want to have different supplier to lower risk of any supply chain issue or QC issue
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Like · 5 months · translate
Eugene Wong
I wud suggest u study and learn the basics of investing, how to analyse financial statement, do valuation and industry value chain & insights etc. Cos frm the way u ask, sounds like u don't knw much abt this company or investing, which means you're speculating aka gambling, investors dun focus on share price, they focus on fundementals and valuation
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Like · 5 months · translate
JUNWEE WONG
the result says drop in profit mainly due to higher expenses & higher effective tax rate. Mind to share what do you think about next qr result if happen another qr bomb like this ? given this PE15 and share price has gone up so much in 5 years if any other unexpected things happens. Thanks
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Like · 5 months · translate
Eugene Wong
Need ask the qs the high expenses and tax rate, is it a one off or persistent thing? PE 15 is not cheap but ask urself what mce do that deserve this abv average PE, if u can find reasons to justify then maybe it is stil reasonable valuation, as for vehicle sales figure, I suggest u follow msia automotive association TIV forecast, so far this year has been abv expectation, down frm last year but not as much as expected, but i wouldnt be distracted by macro, focus on the company
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1 Like · 5 months · translate
Steven Lim
Win proton 52 million project duration 60 months
1 Like · 4 months · translate
Eugene Wong
Yes but need to read the details, only start in q1 fy26, investment cost ard 2.23m
Like · 4 months · translate
Eugene Wong
1 of the bigger contracts won ard 10m revenue per year,
Like · 4 months · translate
Steven Lim
Waiting the news plants to generate for it!
Like · 4 months · translate
Steven Lim
Costs 2.23 million generate 52 million revenue…????
Like · 4 months · translate
Eugene Wong
Yes it's in the announcement pls read it, but it's to generate revenue, theres still other costs, might Wan to estimate profit using their current profit margin
Like · 4 months · translate
Steven Lim
Eugene..how is look for this QR earning?
Like · 3 months · translate
Eugene Wong
I think it's pretty good, not incredible since last year was a high base, operating profit this qr was ard 7m, up frm q3 but still below q1 and 2, overall FY24 is inline with my estimates, fy23 was a great year, so the fact that management can maintain ard the same profit levels by improving margins is a good sign, wud have been better if wasn't dragged by q3, overall solid results, moving forward the strengthening of myr against usd shud lower their COGS, further improving margins
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1 Like · 3 months · translate
Eugene Wong
The increase in civil servants salary will further boost p2 and p1 sales, but I think HLIND might benefit more cos motors are cheaper than cars, and based on their recent price rally, market ady trying to price in, dunno how market gonna react to result tmr, lets see
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1 Like · 3 months · translate
Steven Lim
The cashflow also improve ! Get 1.5 sen dividends.. not bad!
1 Like · 3 months · translate
Eugene Wong
Yes for free cash flow and total cash, need to include the short term invesment cos it's likely some FD or MMF
1 Like · 3 months · translate
Steven Lim
Perodua EV will benefit Mcehldg?!
Like · 2 months · translate
Eugene Wong
If mce cont to get contract frm p2, but the better qs is, how well will the ev sell? If not very good then it won't b good for mce or p2
1 Like · 2 months · translate
Steven Lim
Today announced cash disposal 43million for the land received.. this cash all for capital expenditure new plants.. and JV with high demand profits with China company…
2 Like · 1 month · translate
Steven Lim
Eugene .. how is your view for private placement..if bonus issues is better!
Like · 1 month · translate
Eugene Wong
Pp is usually bad, cos result in dilution 10% is okay I guess any more and it's significant, but I dun like they doing pp cos better to either use debt or free cash flow, as for bonus issue, it's not really better or worst, ur shareholding % didn't increase, it's just share more liquid
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1 Like · 1 month · translate
Steven Lim
Who bought the pp…?
Like · 2 weeks · translate
Eugene Wong
There's no way to tell, AR just came out, usually can see in AR but the pp was after the AR was published, have to wait for next year AR, upcoming agm shud b able to see, but if no new substantial shareholder emerge, means that likely few diff buyer and all <5%
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1 Like · 2 weeks · translate
Steven Lim
Hope kwsp to take the pp!
Like · 2 weeks · translate
Eugene Wong
unlikely, kwsp rarely invest in small caps like this, usually epf only enters larger companies at later stages, they are always 'late' so to speak
1 Like · 2 weeks · translate
Eugene Wong
Either way, I'm going to AGM on 18 Dec, got a few qs to ask management
1 Like · 2 weeks · translate
Steven Lim
I’m too far here…so any information let us know ya..thanks
Like · 2 weeks · translate
Steven Lim
Why jhm get contract 300 million from proton …MCE so less even though perodua too??
Like · 2 weeks · translate
Eugene Wong
hard to say for sure, most auto parts business dun really have very good margin, if u noticed, most are single digit margin, indicating no pricing power, only special cases like pecca and feytech have like >20% margin, nhfatt is another 1 but they are tier 2 supplier, hence i passed on them, for me mce thesis is expansion both local and overseas (US and India), as for jhm, read a bit abt jhm, seems like the contract is supply lights, prob not a high margin contract, i wud prefer if MCE be more selective of their contracts that have better margins
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1 Like · 2 weeks · translate
Steven Lim
I hope DR goh will read that.. anyway thanks Eugene for your sharing!!
1 Like · 2 weeks · translate
Steven Lim
Eugene..any interest points in AGM… how about news plants situation??
Like · 1 week · translate
Eugene Wong
Not much actually, management guided new plant 63% completed, start operations in 2h 2025
1 Like · 1 week · translate
Steven Lim
Good result!! Revenue in news high!!
Like · 1 week · translate
Eugene Wong
yes but bottom line is flat, investment thesis depends on their expansion plan, shud b able to start seeing uptick in q2/q3 in 2025
1 Like · 1 week · translate