Following the release of Trek 2000 International's 3Q17 results, its CEO bought 800,000 shares of the company for $215,440 last Thursday (9 Nov), according to a filing on the SGX.

henn364"By leveraging on our history of R&D capabilities and a track record of innovative solutions, our core Interactive Consumer Solutions (ICS) division continues its growth momentum as we seek to develop disruptive technologies within consumer wearable, medical and cloud technologies.

-- Henn Tan,
Executive chairman and CEO, 
Trek 2000 International.
(NextInsight file photo)

That works out to an average of almost 27 cents a share.

Henn Tan, who is CEO and executive chairman of Trek, now holds 101,597,591 shares, or a 31.46% stake.

He last bought Trek shares in Sept 2015: 42,000 shares at nearly 31 cents apiece.

He is the N0.1 shareholder, followed by Toshiba Corporation (16.32%) and Osim International (8.79%).

No.4: Creative Technology (8.52%).

Trek --inventor and patent owner of the ThumbDrive™ and Flucard® -- has just reported a 24.0% rise in net profit to US$2.2 million for 3Q2017.

9M17 net profit was up 53% to US$5.5 million.

And what a gusher of cash its business continued to be: Operating cash flow totalled US$5.5 million in 3Q17 and US$12.3 million in 9M17.

Stock price 

28.5 c

52-week range

21 – 29 c

PE (ttm)


Market cap

S$92 m

Shares outstanding

323 m

yield (ttm)


Source: Bloomberg

In addition to its continued business strength, Trek has a net cash position of US$33.6 million and US$16.5 million worth of quoted investments.

There is a case to be made that the stock is undervalued:

♦ The net cash and quoted investments total S$68 million, accounting for approximtely 74% of Trek's market cap of S$92 million (based on share price of 28.5 cents).

♦ In the last 4 quarters, Trek's aggregate net profit was US$7 million (S$9.5 million). This includes a 1Q17 provision for sales commission (US$0.5 million) and loss from the disposal of its 19% stake in Racer Group (US$1.3 million).

Thus, the implied valuation of Trek's business is 2.5X PE merely.

Trek's asset-light business model generates nice operating cashflows. Here's how much flowed into the company in the last 4 quarters and the corresponding periods:

US$ ‘m






Operating cashflow






US$ ‘m






Operating cashflow






The market would love Trek's stock a lot more if, given its large cash pile and strong operating cashflow, it would resume paying dividends for FY17.  

It last paid a dividend (0.5 cent) for FY2015. 

Trek, how about a 1.5 cent dividend for FY17? That would amount to about S$4.9 million (US$3.6 million) only.

The implied yield would be 5.3% based on a stock price of 28.5 cents.


For the 3Q17 results, click here.

Share Prices

Counter NameLastChange
AEM Holdings6.1900.150
Alliance Mineral0.390-0.005
Avi-Tech Electronics0.5050.005
Best World Int.1.3600.010
China Sunsine1.300-0.010
DISA Limited0.012-
Dutech Holdings0.325-
Federal Int. (2000)0.390-
Food Empire0.650-
Geo Energy0.240-0.005
Golden Energy0.405-
GSS Energy0.1620.006
Heeton Holdings0.580-
KSH Holdings0.7550.005
Lian Beng Group0.6800.005
Nordic Group0.580-
Oxley Holdings0.575-0.100
REX International0.0550.001
Serial System0.1740.003
Sing Holdings0.435-
Sino Grandness0.200-0.005
Straco Corp.0.8350.005
Sunningdale Tech1.9900.060
Sunpower Group0.600-
The Trendlines0.141-0.002
Tiong Seng0.395-
Trek 2000 Int.0.2600.015
Uni-Asia Group1.3500.010
XMH Holdings0.250-
Yangzijiang Shipbldg1.4600.020

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 1614 guests and 2 members online

  • Lionel Lim
  • Value Investor