Review Of M1 Limited Q1 Results

Before I go into the main topic, I will like to clarify some queries on Fundamental Scorecard website.

People had asked if Fundamental Scorecard requires users to key in any data? 

I like to use this opportunity to clarify that THE ANSWER IS NO! Fundamental Scorecard website's data is already pre-loaded. Eventually each counter will have its own report with the scoring from the pre-loaded data. You do not need to key in any information!

Ok...back to the main topic.

M1 Limited (aka M1) just released its Q1 report this evening.

Basically, revenue and net profit remains flat.

But I like to bring reader's attention to the following 2 slides:


Cost of Goods Sold

If we compare the revenue between Q1FY2017 and Q1FY2018, Mobile Services had increased from $137M to $141M. Fixed Services had also increased from $28M to $32M.

Then if we compare the Cost of Goods Sold (COGS) between Q1FY2017 and Q1FY2018, Fixed Services' COGS remains flat despite a higher revenue. 

This is also in line with the recent Moltey Fool's article on M1.

Therefore, in accordance with my previous article, my belief that Fixed Services will most probably be the determinate for FY2018 revenue is still intact.

Nevertheless, it is important to consider the extract below of a conversation I had with an IN member.

Screenshot from IN
If this is true, how will the revenue turn out in future? That will be an interesting pointer!

In Short

After this short review, I will stay vested FOR NOW in view that the counter is still CD currently and only turn XD on 18 April 2018. I want to receive the dividends first before I decide on further actions.

Please do your own due diligence before you invest this counter.

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