Sunday, August 07, 2016

The Internet of Things (IoT)

The IoT will reshape the world. It will change our lifestyle dramatically. The most emphasised word nowadays is: Smart.

Smart phones have been around for a few years. Smart cars that are driverless, more efficient and safer than conventional cars will soon be a common sight.  

A smart plane embedded with sensors will signal you when certain parts need to be upgraded and changed for the plane to remain safe and efficient.  

A bridge embedded with sensors will warn you when it is overloaded. Doors open for you when you are near them. Alarm bells ring when intruders force open your doors. All smart utensils will operate smartly. 

Gartner Inc., predicts that by 2020, some 26 billion devices will be connected to the internet. Thus you can easily figure out the importance of sensors and semiconductor chips. 

Which companies are going to benefit? IQGroup, KESM, MPI, Unisem, MMSV, Penta and Inari are some of them. Presently, my interest is in the first two which have strong balance sheets and growth in earnings.

If you are interested in these two counters, visit my blog: to read about them. And if you are interested to join my Super Telegram Group, use the link below:

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Thursday, August 04, 2016

IQ Group (LEDs, Sensors & Connectivity)

IQ Group Holdings Berhad is a Malaysia-based company principally involved in investment holding and providing management services. The Company's operating segments include investment holding (includes management services); manufacturing of passive infrared detectors, motion sensor light controllers, wireless video communication devices, door bells, home security system, lighting fixtures and plastic products; trading of security lighting systems, passive infrared detectors and motion sensor light controllers, and development, design, manufacture, sale and distribution of light emitting diode (LED) Luminaires and the manufacture of light engines for use in luminaires. The Company has operations in Malaysia, Japan, British Virgin Islands and People's Republic of China (PRC). The Company's subsidiaries include IQ Group Sdn. Bhd., IQ Japan Co., Ltd., IQ Industries Limited, IQ Group (Dongguan) Ltd. and SILQ (Malaysia) Sdn. Bhd. (Source

For the fiscal year ended March 31, 2016, the IQ Group’s metrics are as follows:

Revenue: RM190m
Net income: RM20.86
EPS: 23.7 sen
Share Capital: 88m; Par Value RM1 per share
Dividend 10 sen
ROA: 12.60%
ROE: 16.26%
ROI: 15.86%
Book value per share: RM1.55
Current Ratio: 4.37
Quick Ratio: 3.22
Borrowings: Zero
Cash and bank balances: RM48m or 54 sen per share
Lasted traded price RM2.04 as at 3.8.2016

The above metrics show that this stock is safe and undervalued with a good dividend yield.

The management of the group is full of confidence for the group. Appended below is the Chairman’s statement: 

Corporate Developments 
Another exciting year for IQ-group! Despite the global uncertainty and volatility of market conditions, the repeated strong performance in FY15/16 illustrates the robust position IQ-group currently enjoys. Our signi cant emphasis on R&D drives considerable new product development with related results maintaining 
strong support from our established and developing customer base. 
IQ-group’s revised vision statement (as below) sums up our unrelenting ambition which is enthusiastically supported by the developing strategies within the business. 
“To achieve global market disruption as we detect, illuminate and announce your arrival via shockingly exciting solutions!” 
ere is no doubt that we are in exciting times. ‘LEDs’, ‘sensors’ and ‘connectivity’ are buzz words which are often central to discussions as the world progresses increasingly towards connected devices and ultimately to ‘the internet of things’. IQ-group is undoubtedly well positioned as we bring our reputation, expertise and innovation in these 
areas to the market place. 
In the past year we have continued to invest in people, signi cantly bolstering our breadth and depth of capabilities and so we look forward to the future with con dence and anticipation. 
Financial Overview 
e Group continued to maintain strong nancial performance, delivering a very similar result to last years’ record performance. For the nancial year ended 31 March 2016, the Group achieved a revenue of RM190 million, a slight decrease of 2% as compared to the previous year’s revenue of RM194 million whilst still being able to maintain pro t attributable to the equity holders of RM21million for nancial year ended 31 March 2016. 
e Group has maintained a healthy statement of nancial position with zero gearing. As at 31 March 2016, the net assets of the Group stood at RM137 million with a net cash and bank balances of RM48 million (or RM0.54 per share). 

Future Prospects 
IQ-group is blessed with valued customer relationships and many developing opportunities. As a business, IQ-group has increasing self- belief and ambition. With the clear growth based strategies in place, we remain motivated and con dent regarding the prospects ahead of us. 
On behalf of the Board of Directors, I again wish to thank each and every member of the IQ-group team for their commitment and tireless e orts which have resulted in another encouraging year end result. 
My sincere appreciation also goes to my colleagues on the Board for their valued and appreciated participation over the past one year. 
Chen, Wen-Chin also known as Kent Chen 

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