1. improving top line - year 2014, S$22 mil year 2016 S$31 mil
2. improving bottom line - year 2014, S$2 mil year 2016 S$6.4 mil
3. cash S$21.1 mil with no debt
4. decent dividend yield of 3.0% on price of 33 cts
5. current price of 33.5 is still below the all time high of 51.5 cts
6. it has the lowest valuation against other healthcare companies
7. active management. Since listing on 28 oct ' 14 company had been
busy acquiring companies, getting into joint ventures n eliminating non-performing
units -
a) acquired SSEC (Southern Specialist Eye Center Sdn Bhd) in Dec 2015
b) cease operation of clinic operation at Mount Elizabeth Novena Specialist Center (ISEC Singapore),
a loss making company
c) acquired JLM companies in Dec 2016. This acquisition come with a profit guarantee of above S$1 mil.
d) joint venture in Sibu
With a cash horde of S$21.1 mil and no debt, company is in a good position to expand its business.
Above are reasons why i am vested.
Just sharing ..not a buy or sell call.
Yes Joes, the pe is a bit high. As a norm I dont invest in high
pe stocks, however i take exception to this one (ISEC) mainly due to
its low valuation in relation to other healthcare stocks. Most healthcare stocks
seem to be able to command pe of 30X and above.
The other reasons are: quite dramatic growth in top n bottom line, no debt n
sizable cash of S$21.1 mil plus a fair dividend yield of around 3%.
Company is actively managed and i expect more jv/acquisitions.
