Below are the updates from the management:
The aerospace related customers have rescheduled delivery lead time.
Nevertheless, none of these customers had cancelled the signed contracts.
The Group’s main revenue streams are diversified into a few business segments and aerospace segment contributes approximately 60% of total revenue of the Group.
The Group does not expect to have a significant change to the half year financial results for FY2020 as compared to the corresponding period last year.
The past effort in streamlining operations and cost saving initiatives have made the Group in the better position to tide through this difficult period.
The Group will continue with its on-going cost saving initiatives and defer its capital expenditures in relation to aerospace segment to sustain this business segment during an economic downturn.
Takeaway:
1) Both Mr. Zee Hoong Huay Executive Director and UMS has been adding on their positions since Jan 2020.
2) JEP is seeing net profit margin increases from 2.7% to 7.3% from FY2019 to FY2020. This shows that JEP's initiatives to shift its manufacturing from higher cost countries to lower cost countries are taking positive effect.
Catalyst:
1) A maiden dividend will drive the price further up.
2) Synergy between UMS and JEP can further enhance cost savings, which should drive the net margin up.
Disclaimer: I am holding 41,000 of JEP.
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