1. turnaround play
2. trading near 5 year low ... implies low risk
3. nav 1.71 cts
4. loss last financial year due to technical issues over at the Vietnam operations. Since then, issues have been resolved.
5. strong book order of S$102 mil (Latest financial year t/o was only S$33 mil)
Turnaround, low risk, likely high returns if turnaround sustained.
52 weeks ... high 2.1 cts low 1.0 cts current 1.0 to 1.2 cts
5 year history ... high 6.9 cts, low 0.9 cts.
2015 ... profit S$1.3 mil on revenue of S$51.5 mil
2016 ... profit S$2.5 mil on revenue of S$66.9 mil
2017 ... loss S$1.6 mil on revenue of S$33.1 mil
1. loss last year was due to technical issues which lasted for 6 months at their Vietnam operation. Issues have now been resolved.
2. current book order is S$102 mil. This book order is higher than the revenue registered in year 2015 and 2016 when both year were profitable.
3. company is currently capitalised at S$12.3 mil. If current year profit were as good as in 2015/2016 the company would be grossly undervalued. Probably will be having a p/e of 5X or lower.
Am vested ... and cannot see any reason why the company cannot turnaround.
1. sales trend
the sales trend for year 2014 to 2016 had been very encouraging, improving ny around $10 mil per year from $41 mil to $66 mil. Unfortunately there was a blip in 2017 when sales dropped to $33.1 mil. The drop in sales was mainly attributed to some technical issues at their Vietnam operations. The project sales dropped from $47.6 to $10.5 mil, a drop of $37.1 mil. Assuming that there was no issue
revenue for 2017 would be in the region of $70 mil which is actually higher than 2016.
The technical issues had been resolved as of now.
Orderbook as of end dec was $75.5 mil. With new orders of $17.3 and $17.2 mil in Feb n April 2018, the current bookorder stands at $110.2 mil. These orders are mainly from Singapore n Myammar. Now that the Vietnam issues are resolved, its fair to aspect new orders coming from them.
Company was profitable in 2015 n 2016 w sales of $40 n $50 plus millions. With current level of bookorder, I am quite convinced that its going to be a good year for them.
4. Price history
Highest traded in the last 5 years was 6.9 cts ... 6 times higher than today' s price.
Lowest traded was 0.9 cts.
5. Low risk
At today' s price of 1.2 cts and against a historical low of 0.9 cts and high of 6.9 cts, I think the risk is low. Current price could possibly be the bottom.
I think Ntegrator is a proper company w a proper business. Their clients are all big names. See below:
The Group counts companies such as Viettel (the largest Telco operator in Vietnam), Singtel, M1 and the Government of Myanmar amongst its well-established customer base. In addition, the Group is supported by its loyal key suppliers, including Alcatel Lucent and ECI Telecom - all leading players in their respective fields.
Its hard to see a proper company w a proper business capitalized at $13.2 mil. Clearly the company should be worth a lot more. I think the company could be a multi bagger given its current and historical low.
Above are just my views and i could be wrong in my assessment.
Hi Joseph, you have gotten me quite interested in this counter. My only concern is the company's Vietnam operations which you said has been resolved. Nonetheless, your track record of picking great recovery stocks is second to none, and so I am diving in. I like the fact that the company has won two new contracts this year. Thanks for your great advise and fingers crossed.
hi bluejeans, i could have got it wrong on this one ... Ntegrator.
Expected a turnaround given its high book order but it seems its not going to be as management had issued a profit warning. Had reduced my exposure by 50% and hope for a better 2nd half.