Its Full Year 2015 Results came in at $10.1 million or 4.59cts earning per share.
Let's take a look further.
Concerns
1) Net profit grew 3650% from $0.27 million to $10.1 million. I am not sure if the figures can carry on the momentum.
2) Current price of S$0.66 ( at the point of writing ), represent a PE ratio of 14.4x. Looks low PE ratio in the last 5 years. I fear a value trap scenario.
Merits
1) Huge cash in hand of $0.214 represent support in share price & ammo for acquisition and growth
2) Management is able to deliver results over a period of 5 years and not a one year magic.
3) Low PE ratio , considering the growth of the company.
My Take:
I have a bad feeling about this. On surface , seems cheap....but has rallied from 20++ cts to 60++ cts....
Let's take a look further.
| Indicator | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 |
|---|---|---|---|---|---|
| Revenue ( in S$ million ) | 41.53 | 48.22 | 41.08 | 75.27 | 101.7 |
| Net Profit ( in S$ million ) | 0.27 | 1.80 | 1.43 | 4.05 | 10.1 |
| Dividend in Cents | 1.6 | 0.6 | 0.6 | 0.8 | 2 |
| Pay out Ratio | 1230% | 68% | 86% | 43% | 43% |
| EPS ( in cents ) | 0.13 | 0.88 | 0.7 | 1.86 | 4.59 |
| Cash ( in S$ million ) | 30.42 | 26.49 | 32.54 | 39.50 | 47.2 |
| Cash per share | $0.138 | $0.12 | $0.148 | $0.179 | $0.214 |
| Share price | $0.155 (6th Jan 2012 ), 119x PE ratio | $0.18 ( 11th Jan 2013 ) 20x PE ratio | $0.19 ( 10th Jan 2014 ) 27x PE ratio | $0.23 ( 9th Jan 2015), 12.4x PE ratio | $0.66 ( 25th April 2016 ), 14.4x PE ratio |
Concerns
1) Net profit grew 3650% from $0.27 million to $10.1 million. I am not sure if the figures can carry on the momentum.
2) Current price of S$0.66 ( at the point of writing ), represent a PE ratio of 14.4x. Looks low PE ratio in the last 5 years. I fear a value trap scenario.
Merits
1) Huge cash in hand of $0.214 represent support in share price & ammo for acquisition and growth
2) Management is able to deliver results over a period of 5 years and not a one year magic.
3) Low PE ratio , considering the growth of the company.
My Take:
I have a bad feeling about this. On surface , seems cheap....but has rallied from 20++ cts to 60++ cts....
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