ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: KESM – will it swim or sink?
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
In a shocking turn of events, KESM, the world’s largest independent provider of burn-in and test services for integrated circuits, has encountered severe financial turbulence.

Once a revenue heavyweight, the company’s earnings plummeted since 2018, primarily due to global supply chain disruptions and geopolitical tensions.

Despite holding a robust cash reserve of RM 247 million, its capital allocation strategies have raised eyebrows, as most cash flow is funneled into capital expenditures rather than returned to shareholders.

Can KESM can successfully pivot towards the automotive semiconductor market and restore its former glory?