Is Globetronics Technology a Safe Bet for Investors Now?
Today, we see a significant downfall in share price for Globetronics Technology (KLSE: GTRONIC), primarily due to the knee-jerk reaction to the resignation of KPMG as their auditors.
While I understand the concerns coming from investors, I still think that the drop is too much, leading to a low in share price in over a decade.
GTRONIC, in reaction to the share price, had made a public release where they are shortlisting UHY Malaysia as their auditor, which is another firm in the Top 10 auditors list in Malaysia.
Fundamentally, we see slower sales coming from GTRONIC’s core business, but the company has been profitable thus far, with a cash pile of over RM144.7 million in hand, as compared to the current market capitalisation of RM364.7 million.
In other words, if you buy GTRONIC at its current price, around 40% of the company’s value is reflected as cash.
A further investigation into the shareholders list of GTRONIC, we can see that both EPF and LTH are the major shareholder of the company.
I think their shareholdings speak volume for the fundamentals of the company, especially with EPF being the largest shareholder.
With all these factors aligned, we think GTRONIC at its current price, is indeed a low risk and safe bet for investors, given the recovery of semiconductor trend in 2025.
What do you think of GTRONIC at the moment?
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GEN2 INVESTING : LorieGan please check the fact, EPF is reducing their stake from 13% to 5% only. Please refer screenshot below. Moreover they have reduced their cash from around 200m down to now 144m with extra capex of 4m without extensive explanation on it.