IQGROUP (5107) - IQ GROUP stock- Grows Brighter When You Walk Nearer
Today added at RM2.1x, and it closed RM2.11, lower than my cost.
PE Ratio: 8.8x (Past 4 Quarters)
Dividend yield: 4.7%
Net cash RM0.54 per share. 27% of share price.
IQ-group is an established global leader in the design & manufacture of lighting, security and convenience products, working with some of the world’s major retail and professional brands.
Over their 25+ year history they have built up an enviable reputation for design, innovation, quality and value within our core technologies, encompassing motion sensors, LED lighting and wirefree door entry products.
Employing approximately 1300 people globally, they boast manufacturing operations in Malaysia and China, plus offices in Taiwan, Japan and the United Kingdom.
In March 2014, they said :
“During the last 18 months we have spent money to develop intelligent lighting solutions to be marketed under the Lumiqs brand name.”
= They have spent the money.
“The Lumiqs LED products enable users to save over 90% of energy, as the solutions, equipped with wireless transceivers, can be programmed to grow dimmer or brighter according to the number of people in an area.”
= Good product that can save 90% of energy?
“They will be released into the market in the second half of 2014 for the global market”
= I think there is a delay. News in September 2016 said starting 2015.
“Expected to play an important role in revenue contribution for the 2016 fiscal year, which starts from April 1 2015.”
= Did we see improvement in Financial Result for year ended March 2016? No. Result was flat. But don’t know how much is from Lumiqs and how much is from forex.
In Sep 2016, they said:
“IQ Group Holdings Bhd is working for its Lumiqs brand to generate 30% of the group’s revenue by 2020. By 2018, it is targeted that the Lumiqs brand should contribute about 10% to the group’s revenue.”
= Good prospect from new product.
“We have established distribution channels for Lumiqs in South-East Asia. Now we are working on creating additional sales channels in Europe and other continents,” he said.”
= New markets
“Both Lumiqs and the new product will help drive the group’s growth over the next five years”
= Good prospect for 5 years
I have missed out on The Star newspaper, if not I would have bought her at slightly lower price, the money saved can add few dishes to my Nasi Campur (mixed rice) for many days.
My view is that this IQ Group have growth. How much, I don’t know. Although past few years, their financial is not so consistent, but the PE ratio is not expensive and with dividend yield of 4.7%, it provides some support. With net cash of RM0.54, it can be used to support dividend payment or for new products/markets development without calling cash injection.
IQGroup fair value and target price? I will just play by ear, assess the new developments.
For those who are concerned about price, she was RM0.35 in September 2013. RM1.00 in July 2014. RM3.00 in May 2015.
So, price is too high now? Or dropped a lot already and can buy?
I look at valuation.
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The Star NEWS ARTICLES BELOW:
Thursday, 1 September 2016.
Lumiqs brand to generate 30% of IQ revenue by 2020
GEORGE TOWN: IQ Group Holdings Bhd is working for its Lumiqs brand to generate 30% of the group’s revenue by 2020.
Group chief executive officer Daniel Beasley (pic) told StarBiz after an AGM that the goal was achievable because the Lumiqs brand had started to receive orders from South-East Asian countries, Japan, Australia, and Switzerland.
“We expect orders to grow rapidly from the South-East Asian region, Japan, and Switzerland.
“By 2018, it is targeted that the Lumiqs brand should contribute about 10% to the group’s revenue,” he added.
Launched in early 2015, Lumiqs lighting solutions enable industrial users to save up to 90% of energy, as the solutions, equipped with wireless transceivers, can be programmed to grow dimmer or brighter according to the movement of people in an area.
“We have established distribution channels for Lumiqs in South-East Asia.
“Now we are working on creating additional sales channels in Europe and other continents,” he said.
IQ is now developing and designing a new sensor lighting offering for release under a new business model by 2018.
“This product is for use in small commercial premises and residential households.
“Both Lumiqs and the new product will help drive the group’s growth over the next five years,” he said.
Beasley said the group spent about 50% of the material cost to import raw materials for its lighting solutions.
“The cost of importation is offset by our sales which are largely in US, allowing use to gain in the foreign exchange,” he added.
For the 2017 financial year first quarter ended June 30 2016, the group posted RM6.6mil in net profit on the back of RM53.9mil in turnover, compared to RM6.4mil and RM50mil achieved in the previous year corresponding period.
According to a LEDinside report, the LED industrial lighting market is expected to grow from US$2.93bil to US5.2bil in 2020, representing a compounded annual growth rate of 15% during the five-year period.
The Start Saturday, 22 March 2014
Riding on a forecast that the global light-emiting diode market (LED) will hit US$42bil in 2019, IQ Group Holdings Bhd plans to ride on its in-house brand name of LED lighting products to drive the group’s growth from April next year.
The LED products to be released come under the category of smart lighting, which according to TechNavio, a London-based research and advisory company, is expected to grow at a compounded annual growth rate (CAGR ) of 36.4% over the period 2013-2018.
Group CEO Daniel Beasley tells StarBizWeek that previously the group had concentrated on manufacturing original equipment manufacturing (OEM) lighting solutions.
“Our in-house brand ‘IQ Group’ contributed between 1% to 2% of the sensor and LED segment, which generates on an average about 75% of the group’s revenue.
“During the last 18 months we have spent money to develop intelligent lighting solutions to be marketed under the Lumiqs brand name.
“They will be released into the market in the second half of 2014 for the global market, and is expected to play an important role in revenue contribution for the 2016 fiscal year, which starts fromApril 1 2015,” he says.
The Lumiqs LED products enable users to save over 90% of energy, as the solutions, equipped with wireless transceivers, can be programmed to grow dimmer or brighter according to the number of people in an area.
“We are targeting mainly the industrial and commercial markets.
“We will also release a version suited for use in residential homes,” he says.
Beasley says he expects Japan to be a major market for IQ’s energy saving intelligent lighting solutions.
“Japan has reduced their usage of nuclear energy, and are starting to import coal and oil to generate electricity.
“This means that there are a lot of business opportunities for energy saving lighting solutions to grow,” he says.
IQ is also talking with strategic business partners to market the Lumiqs products in Europe and Asia.
“We want to work with partners supplying to wholesale channels and the right business networks across the globe,” he says.
IQ expects the sales for the current year in operations to grow by double digit percentage compared to the fiscal year 2013, which ends in two weeks time on March 31.
“We are confident as we have delivered over RM30mil worth of new LED lighting solutions to our customers worldwide,” he says.
A US-based research house forecasts that the LED market will grow close to 50% until 2019.
IQGROUP (5107) - IQ GROUP stock- Grows Brighter When You Walk Nearer