Portfolio July 2018

Sharing my thoughts on Singapore O& G.

Now may be a good time to accumulate this counter.
It is currently trading near its historical 52 weeks/2 year low of 32 cts.
Its 52 weeks high is 48 cts and 2 year high is 74 cts. At 34 cts it is 30%
below its 52 weeks high and 54% below its 2 year high.

At present price of 34 cts, it is trading on a forward p/e of 13.5 which make
it the lowest valued stock within the healthcare sector.

With an estimated annual dividend of 1.8 cts, the dividend yield is 5.2% which
again is among the highest in the healthcare segment.

Company is likely to report an exceptional good set of result current year as its
9 months profit of S$9.1 mil has already exceeded last year full year profit of S$8.5 mil.

Company has no debt. It has cash horde of above S$18 mil.

Presently there is not much interest in the stock n thereby provides an opportunity to buy " cheap" .

Above are just sharing my thoughts and i stand corrected. Pls dyodd.

Interim dividend was 0.8 cts. High probability that final dividend would be 1.0 cts
as final dividend is often higher than interim.

9M profits S$9.1 mil. I estimate full year profit to be around S$12 mil for 2018

Compare against 2017 profits of S$8.5, the profit improvement would be:

S$12 mil - S$8.5 mil. = S$3.5. An improvement of 41.1%!

Hi Joseph

What up with ISEC? Today dropped to a low of 25 ct! No annoucement from Sgx website.

Hi hh488, i do not know of any reason for the drop
in price for ISEC. Its one of the 4 stocks in my portfolio.
I am still holding.

ISEC HEALTHCARE:
The 3 days of selling down early this week, total add up to 700k to 800k shares, values less than $200k or 0.15% of issued shares.

ISEC last month announced a set of disappointing 3rd Quarter 2018 result. Revenue growth by 2% and net profit dropped by 17%.
Both the gross profits and gross profit margins for both periods 3Q2017 and 3Q2018 were generally consistent. The Group recorded gross profit and gross profit margin of S$4.65 million and 46.9% respectively in 3Q2018, and S$4.64 million and 47.6% respectively in 3Q2017.

According to 3rd Quarter 2018 reported by ISEC management, fall in profit were due to increase in Administrative Expenses and Income Tax Expense.

Administrative Expenses:
Administrative expenses increased by 16% to S$2.15 million in 3Q2018 mainly due to increased staff related-costs across the Group and other operating expenses attributable to the increased business activities of the Group.

Income Tax Expense:
The effective tax rates of the Group in 3Q2017 and 3Q2018 were 20% and 23% respectively. The statutory corporate tax rates are 17% in Singapore and 24% in Malaysia.

1H2018 management had increased Int. dividend from 0.5 cents to 0.78 cents which is 94% of the 1st half profits. Last year total dividend of 1.2 cents was 78% of the profits. Management must be confidence of the company future business growth! After all ISEC business are Asset-light, strong cash flow business model. I will wait for 4Q2018 result to confirm the direction of ISEC performance.