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Sapphire 1Q results

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Sapphire's 1Q results came out a few days ago but I lacked the time to go through the numbers. I have yet to initiate any position on it, but it remains a very interesting counter still. The primary reasons for wanting to invest is:

1. A turnaround story where a company acquires another business and seeks to forge a new path forward. People, in general, are still slow to react to this change, and hopefully by recognising it early, investors in Sapphire can reap good returns when the financial numbers slowly reflect the new reality of the company. On top of this, I have a personal good feeling towards the CEO, and believe the management has an edge to push the company further.

2. One Belt, One Road initiative. This is possibly the largest macro trend that the world is going to contend with in the next 10,20 or even 30 years. China has enjoyed a period of strong economic growth to become the second largest economy in the world. Going forward, I believe China is on target to not onl…

Ezion AGM and 1Q results

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I attended Ezion's AGM but did not have the time to update on that. Now that the 1Q results are out, I thought it is a good time to revisit this counter.

Generally, I feel that the operating environment is still very challenging for Ezion and the sector, and the results are quite worrying from a fundamental standpoint. I concede that my past forecasts were overly bullish and decided to temper my expectations. However, I remain convinced in this counter, and would continue to hold it with the same investment thesis. I would definitely keep a close eye on the upcoming quarterly results to see if my fundamental expectations are reasonable.

On to the AGM. I gathered the following meaningful points from the CEO

- Ezion's vessels do not support deepwater operations, only those in shallow water. This is slightly positive, as deepwater operations have the highest breakeven cost, and would likely be the last to recover.

- Ezion's competitors are in the Middle Eastern and Atlantic …

Sapphire financial performance review

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One of the counters that I am looking to enter is Sapphire. This counter has generated quite a bit of interest among retail investors, from what I gather though browsing through Investingnote (IN) and blogs. The share price has also appreciated decently in 2016, and further in 2017 after posting a strong set of FY16 results, capturing the performance of its new business venture in Ranken.
For this reason and after discussion with friends, I decided to conduct my own investigations into the company and its prospects. Much of its operations and strategy has been discussed extensively by other bloggers and users on IN (which is greatly appreciated), and I will not be going deep into them as I do not have any additional expertise, so I will try some quantitative financial analysis.
Management Review I am particularly impressed by the openness and sincerity of the CEO after reading his message in the 2016 Annual Report, where he frankly discusses the performance and outlook of the company, …

Update: Ezion Annual Report

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Quite a number of things happened to Ezion and the wider oil market since I wrote the initiation report. Oil prices dipped in March over fears of U.S. shale, OPEC's cooperation on production cuts etc. Ezion likewise fell, and was at one point of time, lower than my initial entry price.

I was so tempted to average down and accumulate more of weakness,but failed to do so due to capital constraints. Different people have different investing styles. For me, it is all about fundamentals, so if the fundamentals do not change, lower prices would mean more buying opportunities.

Surprisingly, the recovery of oil prices did not lead to a similar recovery in Ezion, and as of writing, Ezion closed at 35cents. The annual report was released today, and I found some interesting ideas to share. Do read my initial post on Ezion if you have not done so (:

First things first, the report was titled "Overcoming Challenges", which I thought was very apt and that it matches my original thesis for…

ISDN initiation

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Most of the information here are retrieved from the HKEX IPO Prospectus, while financial data are the latest numbers from FY16 AR.


ISDN is an integrated engineering solutions provider principally focused on motion control, industrial computing and other specialised engineering solutions. The company has grown from a local motor supplier to an engineering solutions provider with operations in China and Southeast Asia, with Singapore as the headquarters. The company is currently trading at 19.6 SGD cents, with an upcoming dividend of 0.3 SGD cents/share (yield 1.53%).

FY16 revenue is SGD258.5 million, 9.9% increase from 2015, but gross profit of SGD65 million is 1% down from 2015. Gross profit margin decreased by almost 3%, from ~28% for FY15 to 25.1% for FY16. The increase in revenue is attributed to the overall growth of the Chinese intelligent manufacturing market, while the compression of gross profit margins is attributed to cost pressures from RMB devaluation and the intense compe…

Thoughts on my first counter: Global Logistic Properties (GLP)

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Global Logistic Properties (GLP) is the first counter I bought and, on hindsight, it was a really good buy. I got a great company at quite a discount, and the market was fast in reacting/correcting, especially with rumours on buyouts. There is definitely some sentimental value here, but rationally I think the risk-reward ratio is not favourable anymore at the 2.6x level, and I hope I have the decisiveness to sell it should the market provide any opportunity soon. Below is just my macro thoughts on the macro environment GLP operates in, without any in-dep th company analysis.

One long-term trend that I am highly positive about is the meteoric rise in E-commerce, where more and more people conduct their regular retailing activities through the internet. This phenomenon has wide-reaching impacts, with one being the impact on the logistics market.
E-commerce players like Rakuten in Japan, Tabao and JD.com in China, and Qoo10 in Singapore are outsourcing the logistic functions of warehousin…

Investment thesis for ISOTeam(Part 1)

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ISOTeam business model ISOTeam is a market leader in the repairs and decorations(R&R), addition and alteration(A&A) and complementary niche specialist services provider in Singapore with a proven track record in eco-conscious solutions. The Recurring nature of ISOTeam business allows ISOTeam to set a strong base of revenue while seeking growth through 1) their foray overseas and 2) making further inroads into the renewable energy market in Singapore 3) expanding the coating and painting (C&P) segment with most projects coming from the private sector.  

ISOTeam clientele ISOTeam has a diverse clientele that include, amongst others, town councils, government bodies and private sector building owners. In Singapore, ISOTeam is the exclusive paint applicator for Nippon Paint Singapore and SKK Singapore for the public housing sector, and for SKK for Jurong Town Corporation ("JTC") and Housing & Development Board ("HDB") industrial projects and army camps. 90%…