About Green Packet

Dedicated to Jasonred79 said in A Look At Green Packet Quarterly Earnings

• The title of your post is deceptive... the point of interest is not in the earnings for Green Packet.

My dearest Jason,

I am guilty as charged.

The post was utterly deceptive. I had mentioned nothing about Green Packet's earnings.

So this morning I am going to write a bit.

Perhaps not exactly on Green Packet's earnings but I am just going to do a simple look back at historical news article on Green Packet.

25 June 2007.

• 25 Jun 2007: Corporate: Green Packet: We have nothing to hide
  By Cindy Yeap
  
  Green Packet Bhd's share price ended at RM4 last Friday, its lowest for the year. In the last two weeks, the largest capitalised stock on the Mesdaq Market saw over RM444 million of its market capitalisation wiped out, and its share price plunge nearly one-fifth during the period. (comment: what's the price of Green Packet now?)
  
  Some of the losses may have been due to questions raised on the company's high level of receivables of late, causing investors to take profit on their holdings, analysts say.
  
  "While there may be nothing really wrong with the company, one can't blame investors for choosing to take profit, in the light of the recent fraud at Transmile Group Bhd," says one analyst.
  
  After all, most investors would already be sitting on healthy gains, considering that in a span of two years, Green Packet's share price has risen over 10 times from the 55 sen at which it was sold in May 2005.
  
  But at its RM4 close last Friday, Green Packet shares had fallen 30% from its all time high of RM5.75 on Feb 23. The stock last closed above RM5 on June 7.
  Should one be concerned? Will the stock continue to slide?
  
  Green Packet's CEO Puan Chan Cheong says some investors had contacted the company to check on its level of receivables, and that the company had done its best to allay their concerns.
  
  "Our stock was performing when the market was not performing. Now that the stock market is moving, some investors may have chosen to take profit and put their money elsewhere.
  
  "We understand that investors are shaken by recent news of accounting irregularities and may have some apprehension. We will continue to do our best to answer any questions investors may have. We've explained that it is not unusual to give six months' credit to Chinese companies. We've got nothing to hide. Our FY2006 accounts have already been audited and passed by shareholders at our recent annual general meeting," Puan tells The Edge.

Jan 24th 2008, GPacket expanding solutions business aggressively. Here are some highlights from the article.

• Green Packet reported a 69.8% year-on-year decline in net profit to RM6.61mil in the third quarter ended Sept 30, 2007. (comment: 69.8% decline in net profit! oO)
• On this, Puan said: “Shareholders should look at the long-term prospects and fundamentals of the company. We are very optimistic of our newest business pillar – converged telecommunication services – and foresee solid growth from 2009 onwards even as the technology matures and more WiMAX products are made available. (comment: long-term prospect and fundamentals? what does serious decline in net profit margins indicate? )

4 Feb 2008: Corporate: Taking a chance on Green Packet. (by By Cindy Yeap) Some noteable comments.

• It is worth noting that the stock has, in the past 11 months, lost over 70% of its value when measured against its all-time high of RM7.80 on Feb 26 last year. This was in spite of the fact that all four stockbrokers polled on Bloomberg are still calling a "buy" on the stock, valuing the company at least RM4 a share.
  
  Now that Green Packet's share price has fallen almost to RM2, some investors with a long-term view are looking at the stock again. Is the time ripe to pick up Green Packet shares? Has its share price "bottomed"?
• The brokerage — whose sister company OSK Technology Ventures Sdn Bhd is a substantial shareholder of Green Packet with 16% stake — expects Green Packet to book RM49 million net profit for the year ended Dec 31, 2007. This implies an expectation that the company will make RM20 million net profit in 4Q2007. For the nine months ended Sept 30, 2007, Green Packet made RM28.8 million net profit, down 28% from the RM40.2 million made in the previous corresponding period.
  
  "We advise investors to take a long-term view of the stock, considering the interim challenges," OSK Research says.
  
  None of Green Packet's top three shareholders — Green Packet Holdings Ltd (33.78%), OSK Technology Ventures (16%) and PacificQuest (8.26%), which is controlled by its Saudi strategic partner — sold shares post its transfer to the Main Board from the Mesdaq Market on July 18 last year, according to stock exchange filings. But they have not been acquiring either. At last Thursday's RM2.50 close, it would cost the three RM350 million to buy the remaining 42% of the company not in their hands. Every 10 sen difference in share price is RM14 million. ( comments: LOL! Vested interest from OSK Research? )

Oh Cindy!

25 Feb 2008: Corporate: 'Transformation year' for Green Packet (by Cindy Yeap)

• For the full year, the company's top line will still see "triple-digit" growth year on year, but the same could not be said for its earnings. "Profits this year, we believe, will be quite stagnant due to high start-up cost, the investments into R&D, the building of human capital. We are working hard to achieve double-digit growth… we will definitely still be profitable," says Puan
• Green Packet is expected to release its full-year 2007 results by this Thursday.
  
  For the nine months ended Sept 30, 2007, Green Packet's net profit fell 28.4% to RM28.79 million from a year ago. Revenue was up 78.1% to RM99.38 million. Its discounted call service Next Global Technology Sdn Bhd (NexTel) contributed RM42.4 million to revenue but only RM14,000 to net profit so far. There is a profit guarantee that NexTel's audited profit after tax would be at least RM8 million for FY2007.
  
  However, Green Packet may have to book some associate losses from its 20%-owned investment in Singapore-based Inova Venture Pte Ltd and 29.9%-owned GMO Ltd. Based on mTouche Technology Bhd's full-year results, mTouche's 40% share of losses at GMO was RM1.2 million, implying that Green Packet's share of losses is about RM900,000. Inova made a RM8.5 million provision for doubtful debts.
• "I believe we will see a new breed of investors with different horizon when results begin to show," he says.
  
  At its RM2.43 close last Friday , Green Packet shares have slipped 69% from its all-time high of RM7.80 on Feb 26 last year. As at Feb 15, it has 3.07 million shares in treasury that it bought at an average cost of just under RM2.50 each. (comments: what is Green Packet current price?)

28th February Green Packet announced its earnings. Quarterly rpt on consolidated results for the financial period ended 31/12/2007

(comments: It had cash balances then of 242.467 million and total debts of only 3.662 million. A year ago, it had cash balances of 303.832 million and debts of only 1.090 million! How was yesterday's balance sheet? A Look At Green Packet Quarterly Earnings )

Blogged the following last year More On Green Packet

In that posting, on Business Times Green Packet aims to regain sales momentum

• "We expect sales in China to be slow during the first half, and eventually to pick up in the second half once the 3G is awarded. The delay is only a temporary setback. We expect the 3G spectrum to be awarded before the Olympics.
  
  "Should there be any further delays, we still can achieve triple-digit revenue growth; if not, very close," Puan said. (comments: ahem. aiming for triple-digit REVENUE growth! Kinda makes you wonder about net profit growth! LOL!)

On Star Business the very same day, Green Packet sees 100% growth in revenue this year

• Green Packet Bhd, which reported 24% higher revenue of RM122.84mil for the year ended Dec 31 (FY07), expects a 100% growth in revenue this year as its diversification plans start to bear fruit.
  
  Group managing director and chief executive officer Puan Chan Cheong was confident of the “achievable” target, as the company had diversified its markets to cushion the impact of a slowdown in any one region. (comments: On the back of a net profit of only 277 thousand, the CEO keeps harping on higher revenue growth!!!! oO)

May 19th 2006. WiMAX major earner for Green Packet

• “Green Packet set its five-year target last year and it wants Packet One to be a billion ringgit revenue company by 2012 and the solutions business to enjoy a lot of regional success by then,'' he said in an interview. (comments: Billion dollar revenue company!!! LOL! can make money or not? oO )
• He was optimistic of turning profitable fast because the investment cost for its WiMAX business was lower than what a company would have spent on 3G.
• The WiMAX business and an end of the delay in the deployment of 3G in China is forecast to make a huge impact on Green Packet's financial fortune.
  
  “We believe our business in China will bounce back stronger in the second half of the year. At the same time, all our other regions will start to contribute more,'' he said.
  
  Green Packet's investment schedule on its WiMAX and geographical diversification will range from the second half of 2007 to the first half of 2009.
  
  “This will push Green Packet into the next phase. And we believe profit will grow at a faster rate then,'' said Puan, who added that the company was confident of a strong double digit or even triple digit growth rate in revenue this financial year.

July 1, 2008 Green Packet expects better results in second half

• KUALA LUMPUR: Green Packet Bhd is optimistic of a better second half despite weak first-quarter performance, says group managing director and chief executive officer Puan Chan Cheong.

Here is Green Packet's most recent quarterly earnings then. Quarterly rpt on consolidated results for the financial period ended 31/3/2008. It had net losses of 2.733 million. Why isn't this fact mentioned? Instead the word 'weak' was used! LOL!

August came. Quarterly rpt on consolidated results for the financial period ended 30/6/2008

Net losses grew to 4.889 million.

The following was posted on Star Business. (Sorry lost the link)

• Friday August 22, 2008
  
  GPacket optimist
  
  KUALA LUMPUR: Green Packet Bhd, which had a weak second quarter performance, is optimistic of seeing a better second half.
  
  Group managing director and chief executive officer Puan Chan Cheong said the drop in group revenue was mainly due to the substantially higher operating cost incurred for the group’s converged telecommunication business unit. There were high marketing expenses.
  
  Green Packet posted a net loss of RM6.6mil for the second quarter ended June 30 while its revenue fell 37% to RM22.45mil.

Revenue fell 37%. LOL! Where is the revenue growth mentioned by Green Packet?

November 11, 2008. Foreigners keen to take up stake in Green Packet

• More than five foreign investors have expressed interest in taking up strategic stakes in Green Packet Bhd, which recently launched its WiMAX service.
• Group managing director Puan Chan Cheong said the parties involved were international telcos and operators from the US, Middle East, East Asia and Europe.
• “The parties had shown interest in our company, especially our WiMAX service, and we are evaluating the proposals now,” he told reporters after its EGM yesterday.

Few days later, Quarterly rpt on consolidated results for the financial period ended 30/9/2008

Green Packet reported a net loss of 10.829 million.

On New Year Eye, Green Packet plans aggressive campaign

• Puan said the wireless broadband business was expected to contribute to profits within three to five years.
• "We should see a positive bottom line maybe in five years or less," he said.

Feb 7, 2009 Green Packet set for a comeback

• Incidentally, Puan is of the Monkey Zodiac, which is deemed very lucky in the 2009 earth Ox year. In the words of a famous feng shui master: “The Monkey can do no wrong this year. Even if he does wrong, somebody else will take the blame.”

ROFLMAO!!!!

The article then continues...

• Certainly, Green Packet’s financial results in 2008 weren’t too inspiring. Its solutions pillar in China, which had always been its major revenue earner, also took a huge dip as its China clients, which are China’s mobile operators, delayed their spending as they waited for the government to issue third-generation (3G) licences.
• For the nine months to September 2008, Green Packet recorded a loss of RM17.91mil from a previous profit of RM29.88mil. Revenue also dropped 34.67% to RM62.91mil. For the third quarter itself, it recorded a net loss of RM10.29mil.
• Puan is confident that improvement will be seen in both pillars this year. With the 3G licences now issued, he expects China to start contributing positively again by the second half.

Remember positive bottom line in maybe 5 years or less.

And so Green Packet announced its earnings last night.

So how did it do?

How much is Green Packet trading nowadays?