Singapore Kitchen(SKE) was listed on SGX in 2013 at a price of 20cts.
It has hit a high of 25cts on 19th June 2014, a low of 7.3cts in early 2016.
Investment Merits:
1) Company has only $0.4 million of long term debt vs a net cash position.
2) 2 main segment of business: 1) Distribution & Fabrication of kitchen equipment 2) Maintenance & Servicing: Abt 75% of revenue is accounted for Distribution & Fabrication of kitchen equipment, with 25% of revenue as recurring income. As years go by, i am sure the recurring revenue will keep increasing.
3) With robotic machinery, the product can automated and increase efficiency in kitchens. This may be a stepping stone for SKE to widen its client base.
4) Profit has grown from $0.11 million upon listing to $2.57 million in FY2016. Its ROA and ROE is 11.75% and 17% respectively. In the last 4 years of listing, SKE has slowly growing.
5) Decent dividend yield of 4.69% base on last traded price of 16cts.
6) Single digit PE of 9.35x
I believe there is still room for SKE to grow , so is the share price.
Disclaimer: I am vested in SKE.
It has hit a high of 25cts on 19th June 2014, a low of 7.3cts in early 2016.
Investment Merits:
1) Company has only $0.4 million of long term debt vs a net cash position.
2) 2 main segment of business: 1) Distribution & Fabrication of kitchen equipment 2) Maintenance & Servicing: Abt 75% of revenue is accounted for Distribution & Fabrication of kitchen equipment, with 25% of revenue as recurring income. As years go by, i am sure the recurring revenue will keep increasing.
3) With robotic machinery, the product can automated and increase efficiency in kitchens. This may be a stepping stone for SKE to widen its client base.
4) Profit has grown from $0.11 million upon listing to $2.57 million in FY2016. Its ROA and ROE is 11.75% and 17% respectively. In the last 4 years of listing, SKE has slowly growing.
5) Decent dividend yield of 4.69% base on last traded price of 16cts.
6) Single digit PE of 9.35x
I believe there is still room for SKE to grow , so is the share price.
Disclaimer: I am vested in SKE.
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