Further details about SAM ( Why SAM is a SURE WIN stock to invest? )

My golden rules are always: FUTURE GROWTH!

Reasons for SAM:

1. "Our huge aerospace order backlog stands at RM3.1 billion and it provides the thrust to grow our business to reach the RM 1 billion revenue." This is the order book for SAM, base on the annual report 2015! Main contributors is the CROSSOVER PROJECT! The Crossover project will continue to drive growth in thier aerospace business, which contribute to 80 % of SAM's Revenue.


2.  Sound really like Tony Robbins! Do you know what is the motto of the company?
"Our motto of “We are always above and not beneath, the top and not the bottom, the head and not the tail” is the stimulus for us to march ahead and stay ahead of the game in whatever we do. This is our “Driver”. Believing in it and making it happen. All things are possible to one who believes, as with Adidas “Impossible Is Nothing” and Nike “Just Do It”."


3. Increasing EPS especially recent quarters as boost by Stronger USD ( as for today 1 USD= RM 4.05 )

4. NTA RM 4.42. Float shares 0.69 % only. ( any increase in EPS or good news will propel the stock price to the sky! )

5. What is the company about?

The Group has three reportable segments, as described below, which are the Group’s strategic business units. The strategic business units offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Group’s Chief Executive Officer (the chief operating decision maker) reviews internal management reports at least on a quarterly basis. The following summary describes the operations in each of the Group’s reportable segments :

I. Aerospace           Provides a dedicated end-to-end manufacturing solutions on critical engine parts and other related equipment parts 

II. Equipment manufacturing     Provide an array of equipment engineering and solutions for commercial, semiconductor and other industries 

III. Precision engineering        Provides a dedicated end-to-end precision manufacturing solutions on engineering and high precision tooling including large format CNC machining parts 

OUTLOOK for year 2015

The Group’s aerospace business has grown, making up 69% of the Group’s total revenue. The equipment business has seen cycles of volatility and this segment of our business has remained weak last year. The demand for the aero-engine cases has stretched the utilization of our production machines to their maximum capacity. The aerospace business is expected to continue in its current momentum for the next few years barring any significant global economic event. 

SAM Engineering & Equipment is now a global brand and competing against established companies in the United States, Europe and other parts of Asia. With manufacturing facilities in Singapore and Malaysia, it has the capacity and capability to address the needs of the market. The significant order backlog for aerospace products reinforces our growth plans. For our equipment business, the strategy of expanding into the front-end semiconductor equipment arena has taken off quite successfully, winning projects that have high-entrybarriers. The Group is making significant progress as a specialty player in this segment of the industry. Although the demand for the data storage test equipment was still weak, the Group was able to register a revenue of RM452 million and profit after tax of RM34.6 million in the financial year under review. The profit after tax is an increase of 22% over the preceding year. 

The United States is registering strong growth while the European economies have significant downside risks at the moment. In the Asia-Pacific region, the growth rates of China and India are expected to converge to 5.5 percent growth on average from 2015-2019. Southeast Asia is evolving and will have the potential to become a global production hub. The IATA (International Air Transport Association) survey in April 2015 shows that airline profitability continues to improve. The positive outlook is supported by stronger growth in traffic volumes as well as lower fuel costs. Aircraft manufacturers are delivering new aircraft to airlines at increasing rates to meet demand especially for new aircraft models such as Boeing 787 and Airbus 350XWB. New launches of Airbus 320neo and Boeing 737Max are expected from 2017 onwards. This augurs well for the Group which has long term contracts to supply products for these new aircraft models. According to the industry analysts, the outlook for the semiconductor industry in 2015 is positive and the equipment market is expected to grow this year. 

The data storage devices are entering into a transition phase. For years, the hard disk drives (HDDs) held a commanding position simply because the solid-state drives (SSDs) were far more expensive. This is changing rapidly as the price differential between the two disk technologies has narrowed. The Group has been keeping abreast with this changing environment and positioning itself for the next wave. The public shareholding of the Group is at 27.05% as at the end of the financial year.