Cash Piled Up In Globetronics

Globetronics FY13Q3 Financial Result

GTRONIC	FY13Q3	FY13Q2	FY13Q1	FY12Q4	FY12Q3	FY12Q2
Revenue	79.5	85.5	77.5	85.3	78.3	69.4
PBT	18.6	16.5	12.3	10.9	18.0	12.1
PBT%	23.4	19.3	15.9	12.8	22.9	17.4
PAT	15.2	14.1	10.1	11.1	13.4	10.0
Total Equity	285.8	276.9	259.0	261.1	267.9	261.1
Total Assets	343.8	331.9	309.7	326.1	320.9	325.8
Total Liab	58.1	55.1	20.7	65.0	53.0	64.7
Cash	148.8	131.0	109.7	106.1	105.7	106.1
ST Borrow	4.8	0.0	0.0	0.0	0.0	0.0
LT Borrow	0.0	0.0	0.0	0.0	0.0	0.0
Net CF	42.2	24.6	3.5	6.8	6.6	-8.4
Operation	62.3	40.3	18.1	61.0	39.8	18.2
Investment	-9.4	-7.1	-2.3	-25.6	-22.8	-21.0
Financing	-10.7	-8.6	-12.3	-28.6	-10.5	-5.7
Div paid	22.0	13.7	13.7	29.8	10.8	5.4
EPS	5.51	5.15	3.73	4.16	5.28	3.62
NAS	1.03	1.00	0.95	0.96	0.99	0.96
D/E Ratio	Net Cash

Gtronic has just recorded its record-breaking quarterly PBT & PAT, but its revenue for FY13Q3 falls slightly (7.5%) QoQ.

After 9 months into FY13, its revenue and net profit increase 18.3% and 31.2% to RM242.3mil & RM39.5mil respective compared to previous corresponding period.

Gtronic's cash flow has been magnificent so far, in which it has generated RM42.2mil cash mainly from operation. It has cleared all its debt since year 2012 but now a short-term borrowing of RM4.8mil appears in its balance sheet, though it is cash rich. Is it going to acquire something soon?

While having spent RM38mil of capex in FY2012 mainly in sensor product investment and capacity expansion, and paid RM29.8mil in dividend, Gtronic was still able to generate RM6.8mil of positive cash flow in FY2012. With its current positive cash flow at RM42.2mil (after RM22 paid as dividend so far in FY2013), more dividend is expected for FY2013.

Gtronic is definitely a good company with good growth potential and dividend payout. However, it seems to be overvalued at the moment and I might sell some if the time is right.

Anyway, I do hope that it can acquire some good business within this year.