Elsoft Research Berhad ('Elsoft') is involved in the research, design and development of test and burn-in systems and application-specific embedded systems. It provides products for semiconductor, opto-electronic (such as image sensors) and automation industries (such as lighting).
Recent Financial Performance
In QE30/9/2018, Elsoft's net profit rose by 13.6% q-o-q or 61.7% y-o-y to RM13.6 million while revenue rose 1.3% q-o-q or 47.1% y-o-y to RM24.5 million. Revenue rose q-o-q mainly due to greater demand from smart devices industry and continuous demand from automotive and general lighting industry. The increase in revenue led to increase in profits.
Elsoft's financial position as at 30/9/2018 is deemed very healthy with current ratio at 4.6 times and gearing ratio at 0.2 time.
Based on last 5 years' CAGR of 30%, Elsoft's PEG ratio stood at only 0.6 time. At this PEG ratio, Elsoft is deemed fairly attractive for a growth stock.
Elsoft is in a gradual uptrend in the past 5 years- reflective of its steady earning growth.
Based on good financial performance and position, attractive valuation and technical outlook, Elsift is a god stock for long-term investment.
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