Time to report on non-reit companies performance for the past quarter.
The tables below summarizes their performances for the latest quarter.
A+
Valuetronics
A
iFAST
iFast continues to show consistent growth in its top line. Its net profit growth is superb, up near to 120% for the quarter and 66% for the year. Still a distance from the highest recored in 2015, but that is because of the loss in China market. Going forward, if it continues to grow in such manner, it would not be long before the record is taken down. Also, immense potential from the China market in years to come.
The summary page from the group’s presentation provides a good snap shot of its business.
Have added some at $0.89 recently. Would look to add more at appropriate juncture.
UMS
UMS has returned an amazing set of results for the year. Revenue is up 56% and net profit by 131%. Free cash flow comes in lower than last year though as quite a bit of profit comes from increase in inventory. It continues to pay 2c ordinary dividend and 1c special dividend which is the same as last year. However, considering the bonus issue in the last quarter, that’s an increase of 25% of dividend.
The prospect looks good as guided by the following statement from the CEO.
“The global semiconductor super cycle will continue to drive growth for UMS as order flow remains strong with our key customer, one of the world’s largest suppliers of fabrication equipment to semiconductor industry – is forecasting double-digit revenue and profit growth in 2018 as it remains a direct beneficiary of the boom in Artificial Intelligence (AI) and Big Data,” said Mr Andy Luong, UMS’ Chairman and CEO. “We believe that the global smart device “explosion” will drive revenue growth through 2018 and beyond.”
Have added more recently at $0.99. Would look to add more at appropriate juncture.
B
VICOM
As expected, Vicom’s revenue and net profit continues to decline due to COE cycle. Looking at the latest age distribution of vehicle statistic from LTA, it looks like it would be another year of minor decline for 2018, before the increase in revenue from 2019 onwards.
Vicom has implemented a 90% dividend payout policy last quarter. For this financial year, it has paid out a total of $0.36 dividend which is 36% higher than previous FY. The payout ratio stands at 120% from its earning and 110% from its free cashflow. This means she needs to take $0.07 out from its cash reserve this year for the dividend.
Is this sustainable? I believe so as it currently has a cash balance of about $1.07 per share. And with the expected up cycle from 2019 onwards, I am forecasting a dividend of at least $0.30 for the next few years.
Looking to accumulate after XD.
Raffles Medical Group
Another flat quarter but things are looking bright with the various development coming in place. RafflesSpecialistCentre opened in January and with refurbishment of RafflesHospital to be done by mid-year, capacity is set to increase. RafflesHospital Chongqing will open at the end of the year and construction of RafflesHospital Shanghai is in time and will open next year.
The group surprises with an increase in dividend, signalling the management’s belief of the group’s cashflow going forward.
Average down the second time at $1.11 in half a year, bringing it to 8.5% of portfolio. Will probably not add more in the near future unless the price drops below $1.
Straco
Another flat year for both in top and bottom lines, Straco continues to generate cash from its business. It has a net cash of $140 mil or about $0.16 per share, surpassing its record high in 2013 before it acquired Singapore Flyer.
I am disappointed that it did not increase its dividend this time round. Wondering what they are going to do with the cash pile that will continue to grow.
I am glad that the management issued the following statement with regards to the suspension of Singapore Flyer.
“On 25 January 2018, the Group subsidiary’s Giant Observation Wheel was suspended due to a technical issue. Flights operations are expected to resume once investigations are completed and approvals are obtained from the relevant authorities. As of to date, to the best of management’s knowledge and belief, it is unlikely that this temporary suspension will significantly impact the Group’s business operations as a whole.”
It’s fortunate that the suspension occured in Q1 which is a relative quiet quarter. And hopefully it can be up as soon as possible.
With the lack in clarity in the use of its cash hoard, I might reduce my stake at the appropriate juncture.
Food Empire
I have completely divested Food Empire since its profit guidance of Q4 loss. Overall, it looks fine with an increase in 11% in revenue and a 3% drop in net profit. However, if we exclude the loss, then net profit would have at least doubled. Going forward it aims to expand on its overseas market and continue to expand its ingredient business.
With the clarity on the impact of its loss due to impairment, I will be on a look out to re-enter the counter.
C
800 Super
It is another poor quarter with a drop in both top and bottom lines. Balance sheet is poorer with increase in its investment. It is indeed worrying with the increase in net debt and a decrease in earning.
I am holding on to this for the moment as its WTE plant comes into operation next quarter and the sludge treatment plant will complete two quarters later. Hopefully, these two will reduce the cost and improve the earning soon.
Might partially divest if I need cash for other purchases.
Towards Financial Independence 