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.
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.
