Review on FY16Q1 result
> Net profit dropped below MYR1 million for the first time since FY13
> Compared to FY15Q1, it had dropped 68%
The weak performance was due to the expedited delivery of equipment and services. In other words, OPENSYS had delayed its deliver of goods to customers and probably will account in on the second quarter.
However, its order book for Cash Recycling Machine remains robust. In the first quarter of this year alone, its order book for CRM had exceeded that for the whole of last year. This should translate into strong revenue for the remainder of this year.
Currently, there is approximately 16,000 units of ATM and CDM in the market. With current penetration of 6% only in Malaysia, the potential market is very huge, if just based on replacement alone.
Today, OPENSYS had dropped 2.5cent to its support level 0.28 due to its below expectation result, perhaps it is a good time to buy on weakness?
OPENSYS current price = MYR0.28
OPENSYS (0040) - OPENSYS (M) BERHAD