Eucon has to turn profitable this year in order to get out of SGX watchlist (after 3 consecutive years of losses). Can it? 1Q 2015 was profitable at only $166K (with lots of help from forex gain, otherwise, it was another quarter of bleeding).
Aside from profitability, Eucon has to achieve market cap of $40 m. With share capital of 570m, Eucon share price needs to trade above 7 cents. If it can achieve this, Eucon would be nearly a 5-bagger from current price of 1.6 cents. Can it do it within 1 year??? ! Big challenge.
To look at it another way, if Eucon were to achieve $40 m market cap, we would expect earnings of about S$5 million (for a PE of 8x -- which is a generous valuation). Can Eucon achieve S$5 m profit in 3 quarters of this year?
I am slicing the story in a financial way but I don't know much about its business and its new products. Any one can share his insights? Is there a chance to make a killing on this stock?
The Taiwanese plant just started to ramp up operation to produce embedded PCB, with revenue of $5m for 1q. It should have finalised the standards with JEDEC for several designs and filed for design patents. I expect production would ramp up very quickly over the next few qtrs.
For its Chinese subsidiary, zhuo Kai, there was a recent announcement on IPO. I'm not sure if it can be done by middle next year, based on its plan.
I think the event may pan out like stratech, another stock in similar situation but now drawing huge attention. Good luck!