Armarda's 1349 Satphone Service Launch
SIAS Research analyst Ng Kian Teck yesterday issued a preliminary report on Armarda Group, giving it an “Outperform” call with a target price of 8 cents based on 4.3X FY2015F PE.
That target is more than 3 times its recent stock price of 2.3 cents.
The analyst assumed that the company would issue 1.2bn shares for the call option to buy the remaining 55% stake in its associate, China Mobile Satellite Communications Group (CMSCG), and another 1bn shares for fund raising purposes.
On Tuesday, the “1349” mobile satellite phone service that Armarda supports was launched by China Telecom in Beijing to its enterprise users and retail consumers.
The service will be made available through China Telecom subsidiary China Telecom Satellite Communications Co Ltd (CTS).
Armarda’s 45%-owned main operating subsidiary, China Mobile Satellite Communications Group, has an exclusive agreement with CTS and Thuraya, a UAE-established leading global GEO satellite mobile telecommunication operator.
CMSCG will be the exclusive provider of Thuraya’s mobile satellite telecommunication devices and services in China.
In return, Thuraya will provide technical and marketing support to CMSCG.
“Thuraya is well known for their robust satellite communication network as well as their high quality handsets. The partnership with CMSCG to market Thuraya’s products will strengthen our product portfolio and we are delighted to offer them to our huge customer base of 126 million mobile subscribers, a fair portion of which is considered as our target users of this 1349 Thuraya mobile satellite service,” said CTS deputy general manager Tong Shi Rong at the launch ceremony.
In 2011, demand for dual mode satellite phones was about 320,000 to 410,000 units. In 2 to 3 years, the market has potential to explode to many as 3,840,000 units, according to Nielsen Company.
Related story: ARMARDA: Analysts & Investors Test Its Satphone Service Out At Sea
Smart money follows Ezion
Following oil & gas veteran Mr Tan Boy Tee’s subscription of 10 million shares in Ezion for S$12.635 million last month, EDB Investments has subscribed for about 14.3 million shares for about S$19 million in the offshore logistics support service provider.
Ezion owns one of the largest and most sophisticated class of Multi-Purpose Self Propelled Jack-up Rigs (“Liftboats”) globally and has operations around the world.
Its Liftboats are used mainly for well-servicing, commissioning, maintenance and decommissioning of offshore platforms.
Ezion also owns a fleet of vessels, consisting of tugs, ballastable barges, offshore support vessel and self-propelled barge that are used in the provision of offshore marine logistics and support services to the offshore oil and gas industries.
Its fleet of ballastable barges, one of the largest in the region, has been specially reinforced and modified to carry the prefabricated modules in the construction of LNG extraction facilities and jackets for the offshore oil and gas industries.
EDB Investments is the corporate investment arm of Singapore’s Economic Development Board.
It is a leading strategic investment firm headquartered in Singapore with a worldwide presence and invests to drive growth opportunities within key industries in Singapore as well as knowledge and innovation-intensive sectors of Internet & Digital Media, Biomedical Sciences and Clean Technologies.
Related story: BIOSENSORS, SEMBCORP MARINE, EZION: What Analysts Now Say...
Global Premium Hotels chairman accumulates shares
Non-Executive Chairman Koh Wee Meng is once again accumulating Global Premium Hotels shares.
In December, the billionaire purchased shares amounting to S$3.8 million from the open market.
He purchased 15.5 million shares at an average price of 24.45 cents, bringing his total direct and deemed interest to 577 million shares (54.85%).
Mr. Koh is also the Executive Chairman and founder of the Fragrance Group of Companies, which is Global Premium Hotels’ controlling shareholder.
He has been accumulating the company's shares after its IPO on 26 April this year.
And he has dividends to count -- in the two quarters post listing, Global Premium Hotels has declared two interim dividends totaling 0.4-cent per share for 2Q2012 and 3Q2012.
It said that it intends to pay 80% of FY2012 net profit as dividends.
Related story: GLOBAL PREMIUM HOTELS, AURIC PACIFIC, CORDLIFE: What Analysts Now Say....