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jack, gts results doesn't surprise as it was expected ... that's why a lot of selldown had already occurred.... agree the price could go lower ... nicky will have another song song day tomorrow shorting.
0.105 , result just out, horrible + terrible = tomorrow sell down.
4Q net profit from last year USD 2.58 million become USD 32.71 million LOSS !!!!!
Full year 2007, net LOSS of USD 26.64 million !!!!!!
it will become Equation price soon.
all time low at 0.11 price... Global test only worth 0.11?
any rebound from here is rewarding, every 0.01 cent is nearly 10%...
DBS recent update with management suggests 4Q has indeed been slower than expected, as consumer electronic tapersoff in December after ramping in earlier months. But the biggest negative on this year's earnings will be the proposed one-time depreciation charge, which we estimate could be as high as US$29m, and tip FY07 into a net loss situation. The impact is no doubt severe in the near term, but it will clean the slate for ahealthier rebound in FY08. Operationally, 1Q08 outlook seems firm as the expected ramp up of Xscale (starting end-Dec) will offset continued slowdown of consumer electronics post holiday season.
Based on DBS' worst-case scenario, current share price is valuing GTC at 0.9x P/B and 0.8x FY08 and 7x FY08 PE. These valuations are undemanding. They believe the stock is oversold and looks right for bargain hunting, amid improving operating environment and possibly share buyback by the company, given depressed valuations. Maintain BUY on revised target price of $0.28 from $0.34, still pegged to 1.2x P/B.
Taiwan-based wafer testing house Ardentec has revealed that its order visibility has extended to Oct, with 3Q revenues likely t oincrease 10-15% sequentially.
The company said its Jul revenues hit a record driven by strong orders from Texas Instruments and foreign IC design houses,with utilization reaching 90%. It added monthly revenues may set further records during 3Q ending Sep '07.
Ardentec is a competitor of Global Testing. Ardentec's optimistic outlook and record results
for 3Q is in line with the bullish outlook painted by Global Test for its 2H07 during its results briefing.
Global Test expects to increase 3Q07 sales by 10-15% qoq and a stronger 30-40% qoq in 4Q07, underpinned by robust orders from existing customers such as Marvell (HDD controller chips), Nvidia (graphic chips), TSMC (graphic and PC chips), Sunplus (consumer electronic chips), Morning Star (LCD TV chips) and Global Unichipas well as new customers such as NXP (iPhone Power Management Chips), Himax (TV controller chips), Silicon Image (TV and HDMI chips), Fortemedia (audio processor chips), Techwell (video controller chips).
Given the high operating leverage, sequential bottom-line improvement would most definitely outpace 3Q07 and 4Q07 top-line growth of 10-15% and 30-40% respectively. L&T are expecting bottom-line to surge 100% qoq in 3Q07 to US$4m and another 100% in 4Q07 to US$8m.
Due to the strong demand from both existing and new customers, management have budgeted to increase their testers from 153 in 2Q07 to 158 in 3Q 07 and 180 in 4Q07, with utilization rate expected trend upwards to >90% from 2Q07 70+%. With its cash holdings of US$63.5m and operating cash flow of US$30-40m, the capital expenditure of US$30-35mln would be easily financed internally.
At 1x price to book the stock is cheap compared to the sector average of 1.5-2x and is trading at the bottom-end of its historical trading range of 1-2x, hence L&T maintain BUY.
Show of confidence by BBs!!!!!!!CHEONG AH!!!!!!
| No. of Shares held before the change | 45922000 |
| As a percentage of issued share capital | 4.37 % |
| No. of Shares which are subject of this notice | 12439000 |
| As a percentage of issued share capital | 1.18 % |
| Amount of consideration (excluding brokerage and stamp duties) per share paid or received | 0.3449 |
| No. of Shares held after the change | 58361000 |
| As a percentage of issued share capital | 5.56 % |
From DBSV this morning!!!!!!
Global Testing
Landed new smartphone order
��
who attended the Pulse of Asia conference last week. Apart from the
recovery in the semicon market, the company could get an added
boost from new orders in the smartphone area.
Story: Global Testing (GTC) gave a positive update to investors��
quarter of 2007, the mixed signal and logic chip tester should see
strong revenue ramp-up and improving profitability from Q3 amid an
upturn in the semicon industry and new engagement in smartphone
projects. We believe management would guide positively for the next
six months and the year?s earnings performance would be heavily
skewed towards a 10:90 split between 1H and 2H.
Point: While we expect GTC to make only US$1.8m in the second��
and 1.1x P/B compared to sector average of 12x PER and 1.7x P/B. Our
one-year price target of S$0.42 is based on mid-cycle forward P/BV of
1.5x, supported by its historical trading band of 0.9-2x P/B.
Relevance: GTC currently trades at around 10.9x FY08 earningsImprovement starting from Q2.
problem in the last few months, GTC experienced m-o-m improvement in
orders starting from April to June. We estimate GTC could report Q2 net
profit of US$1.8m on sales of US$15m. Although still lower yoy, this
represents a six-fold jump in earnings over Q1 and revenue growth of 13%
sequentially. Including the S$0.2m recorded in the first quarter, GTC is
expected to post US$2m in the first half of 2007.
Notwithstanding the lingering inventoryPositive surprise from new smartphone
management chip testing orders from Philips some weeks ago for a
smartphone that is all the rage now. Scheduled to ramp next week, GTC is
expected to start with seven testers now to 15 by end Q3 before picking up
further throughout the rest of 2007. GTC is one of two qualified suppliers
and both are overwhelmed with bookings. The company is also busy
ramping WiFi chips for Marvell, which in turn supplies to smartphone
ultimately. On balance, management believes smartphone-related orders
could account for 5-10% of its revenue by year end.
. GTC started landing powerCapacity utilisation trending higher
an uptick in the PC-related market with rising graphic chip orders from
both AMD and nVidia. The consumer electronics sector is also heating
up with signs of improvement from MorningStar(DVD controllers) and
Sunplus (LCD TV controller). Consequently, we expect capacity
utilisation to hit 80% from only 55-60% in the March quarter. We
believe a stronger than expected ramp-up in smartphone IC testing
could lead to potentially higher utilisation rate and operating margins.
the vigorous buying up today started at 1616..........................
could be from the european markets my guess......................
surely must be something good.................
vested
caveat emptor
those big boys in GT are simply incredible.....................
well done............................
Personal view & vested :- There is great upside for Global Test becos of patented testing tech and recent +ve coverage as a poss M&A tgt. Have faith it shld cheong in coming weeks, scenario quite similar to UTAC. Last wk adjustment could be BB play..
chipchip66, it may get a slight push upward due to DBSV coverage today. Another 1c or more upward today?! Go Global Go!
Global Testing
Brighter outlook
Story: Our latest update with management confirmed robust underlying demand
with strong bookings particularly from PC-related chip customers.
Point: In view of the brisk business momentum, we are confident that Global
Testing (GTC) would be able to 1) meet higher end of its revenue guidance
for 10-15% topline growth in Q2 and 2) guide positively into 2H, as the
ramp-up gathers momentum into Q3 before peaking in Q4.
Relevance: Though there is no change to our forecasts, we have raised our
target price to S$0.42, based on a higher valuation peg of 1.5x P/B vs
1.2xP/B previously. This is to reflect an improving operating environment
and to align our valuation closer to market pricing. We believe sentiment
on the stock will continue to be buoyed by improving operational outlook
and M&A possibility. Moreover, GTC is now the remaining proxy for continued
exposure into the semiconductor recovery cycle after STATS and UTAC.
Maintain Buy.