Biosensors vs Techcomp

I thought it was ingenious that the management decided not to interfere with the day-to-day running of the european biz. The ang mo do not like to be told by a yellow-skin what to do. By helping them to do global procurement to reduce raw materials costs and adding new products for them to sell in europe, Techcomp effectively added another marketing arm in Europe. How will 2010 pan out? Assume Techcomp can continue to grow 20% organically in revenue, then we will be looking at a US$120m revenue in organic growth. Bibby Scientific JV operations can probably contribute another US$10m in 2010. Assuming that the European acquisition can add another US$10-15m revenue. That will bring us to US$145m for 2010. Margins are expected to improve with the manufacturing side gaining more economic of scale. I would conservatively assume that net margins can stay at 8-9%. Barring any currency extreme fluctuations, we are probably looking at 2010 net profit of US$11.6m to US$13m. EPS would be around 10.47 cents to 11.74 cents FY2010 PE would be 4.25x to 3.79x. Of course, these are all assumptions and subject to market volatility. Just my 2 cents view and not a recommendation to trade. :laugh: :laugh:

While I am pleased with the FY09 results, I am worried over its recent acquisition. The recent acquired company is loss-making. The global procurement and extension of sales into Asia may help to reduce the losses. However, it remains a question whether it will turn losses into profits. And even if it does, the profit may not come in just 1 year, especially since Techcomp is taking a hands-off approach. I am guessing that the net profit margin may fall in 2010. Rising profit may be likely, as long as the increase in sales can outweigh the acquired drag on profits.

lowsx: From what I have read in today\'s report, Techcomp has turned around HCC group which it acquired in 2009. So there is reason for confidence that Techcomp can turn around the newly-bought European company this year (unless the ang mos are stubborn! Hahahaha..).

Liquidity is an issue. The record profit for 2009 has yet to spur interest in the stock. Not sufficient buyers to push price up. Not sufficient shares available for sale to make it a meaningful investment, despite the merits of the business. There is a bonus issue of 1 for 2 shares, will improve liquidity but ... significantly? What do ya think?

Hohoho.... more than 1 million shares traded today. Married deal of 800,000 shares at 44 cents. Funds buying or CK coming onboard. I think stock is cheap cheap....

Before I go to meet my kakis for lunch..... someone just SMS-ed me - got announcement now on SGX that Richard Lo, the boss of Techcomp, bought 800,000 shares at 44.5 cents yesterday. It is a very positive sign, hor?