How to Make $$$$ in 2016!!!

After Strong Run by Tguan From RM 2.74 to current RM 3.4 ( > 30% gain)!! Congratulation to those who bought and keep under your pillow!  What will be the next one in the making?
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Previous post on KESM

What to look for in year 2016?

What Business is KESM in?

KESM PROFILE

KESMI is associated with the Sunright group of companies, which is incorporated in Singapore. The KESMI Group comprises KESM Industries Berhad (KESM), KESM Test (M) Sdn Bhd (KTM) and KESP Sdn. Bhd.(KESP).

KESM and KTM is strategically located in one of the prime industrial hub in the Sg Way Free Industrial Zone in Petaling Jaya and KESP is located in Penang.
KESM has been engaged in specialized electronic manufacturing activities since 1978. KESM's primary objective is in specialized electronic manufacturing activities and serves as sub-contractor to electronic multi-national corporations. In particular, it is in the business of providing "burn-in" services to the semiconductor industry. KESM has experienced steady growth in business and was successful in becoming a public listed company in 1994.
In working closely with world class semiconductor manufacturers, KESMI has successfully introduced programs jointly with customers to support their operations. These programs involved extensive training to raise awareness, improve skills and intensify participation, so as to meet steadily rising requirements on quality and delivery. As a result of our achievements, it has given the company great satisfaction in receiving many business dealings and is poised for greater growth.

KESM ACTIVITIES Our Activities KESM is principally involved in specialized electronic manufacturing activities. More specifically, the company is engaged in providing burn-in services. The company has business dealings with virtually all the American semiconductor manufacturers. Our Services Semiconductor burn-in services Electrical testing of semiconductor IC Tape and reel assembly Burn-in The production of semiconductor devices is ever increasing and creates a continuous flow of demand for burn-in. An integrated circuit may be defective at the time it is produced or it may have a latent defect which permits it to operate according to specifications for a period of time but eventually causes it to fail. Burn-in is a process of stressing semiconductors to weed out potentially weak circuits. The technique involves subjecting a device to heat and voltage stress for several hours or days and exercising it through the limits of its electrical performance. The only effective method of assuring high reliability of semiconductor is to perform burn-in. As the demand for telecommunications, computers and consumer electronics increases, the wide range of assemblies become ever increasing. Electrical Testing Testing service is provided by KESM Test (M) Sdn Bhd

So, how does KESM make money in year 2016? 
What is the growth propeller? 

• Reduce human workforce due to more automation ( please refer to its latest annual report 2015)
• forex gain from Stronger USD
• increase demand for its service especially the testing of semiconductor chip! 

" The testing of semiconductor chip is our growth engine. " 

 This is the exact sentence used by the company in its latest Annual report! 

Expanding Test Services
The testing of semiconductor chip is our growth engine. The bulk of our expansion is testing devices for the automotive market. We are optimistic of a steady growth because the number of chips used in a car is increasing and even the mid-range cars are incorporating more chip contents in their car design. The number of cars is expected to grow too.
In making cars smarter and safer, new features are added into the "microcontrollers" which are widely used for integration. A single "microcontroller" combines the functions of a processor, memory and other peripherals. These chips are found in the engine control systems, Advanced Driver Assistance Systems “ADAS” applications, and also widely used in infotainment systems. The demand for "microcontroller" is increasing and this device is of relatively high value. Testing of microcontrollers for cars is one of our target markets for 2016.
With the expanding Internet of Things “IoT”, "microcontrollers" have become an even higher- volume component of the semiconductor market. These chips are used in digital cameras, mobile and wearable devices which are in high demand.
02 KESM INDUSTRIES BERHAD ANNUAL REPORT 2015

   

Strengthening Burn-in Services
Our business is about quality. The extension of test after burn-in offers our customers tremendous “value-add”. Increasing demands for intelligent cars are attracting emerging technologies. To ensure absolute reliability of the chips, the process of burn-in or stressing of chips at elevated temperature is not good enough. Automotive makers are looking at ways to test during burn-in "TDBI". "TDBI" performs tests using high temperature and critical testing patterns to accelerate the defective failures of integrated circuits. This improves quality. A new generation of chips with higher quality expectation would drive the demand for "TDBI" processing. This is a costly investment requiring very high degree of process control.
For the last 4 years, we embarked on a program to develop proprietary process tools beyond the tracking of devices flowing through our manufacturing floor. Last year, we completed the final phase of our development, providing a fully integrated flow which monitors and controls the “TDBI” process. Our system identifies how, when and where devices or equipment may fail before, during or after the burn-in and test process. This combined proprietary process offers assurance and confidence to our customers for “TDBI” processing. 

What are others factors that will propel the price higher?

This stocks are invested by Mr Koon Yew Yin, Ooi Teik Bee Technical analysis wise: it is breaking new high with huge volume today!

Will KESM continue its uptrend? Let's wait and see.

Let's take a look at its earning! 

You can see that the earning in last 2 quarters shooting up nicely! 

PS: I am not asking you to buy. If you buy, you are doing it at your own risk.