COMMENTS ON BSL CORPORATION BERHAD (7221)

FIGURE 1: BSL CORPORATION BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2018 annual report.

1.       GENERAL INTRO: This counter core business is on metal stamping and PCB assembly.

2.       NOTABLE POINTS:

a.       according to 2018 report, invested capex 3.4million on new machineries, including advanced fiber laser cutting machine and CNC press brake machine

b.      the 2018 report noted increased revenue contributed by the metal stamping division, due to higher sales from TV back chassis and agricultural components customers.

c.       the PCB assembly division is currently making losses due to foreign exchange losses and provision of impairment losses in invested subsidiary

d.      minor segments include renewable/solar energy division and property development division

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~158.7 million in 2018 annual report, this is a low revenue company.

b.      SHARE PRICE: last year share price on decreasing trend, dropped from ~RM0.80 in 2018 to current share price of ~RM0.36.

c.       EARNING PER SHARE (EPS): earning per share in last 5 years were fluctuating, EPS were -10.2, -3.7, 4.9, 3.31, -1.15 sen per share, respectively, making losses in 3 out of 5 years.

d.      FUTURE POTENTIAL/PROSPECTS: estimate lower longterm earnings from TV segment, as due to the advent of OLED technology, the number of metal components per TV set will reduce.

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is 1.76 million, around 1% of total assets.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2018 report, there was no dividend payout declared.

b.      CONSISTENCY: there was no dividend payout declared in last five years.

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around 9.8 million

b.      SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well supported by institutional investors, there is no presence of institutional investors at top 30 major shareholders list.

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