In a perfect investment world, Powermatic Data Systems' stock would be trading at much higher prices.

It's not that complicated to make a case for that.

Its latest half-yearly profit (ended Sept 2017) came up to S$2.5 million, up 8% y-o-y. It's yet another steady result.

S$ ‘m





Net Profit





What's a standout, which has become even more so over the past couple of years, is the fact that its cash, its quoted investments and the value of its freehold property all add up to a figure far exceeding its market cap.

These three assets, respectively, add up as follows: S$26.3 million + S$10.2 million + S$33.5 million =  S$70 million.


Gross profit margin


Net profit margin


Historical dividend yield*


Historical dividend payout ratio*


Market cap

$49 m

* Based on $1.40 stock price and 5-c ordinary dividend and 2-c special dividend for FY2017.

In contrast, its market cap at a share price of $1.40 is S$49 million

So, the stock price doesn't give an iota of respect to the business per se.

It's no ordinary business: You can recognise that from the 52% gross margin (1HFY18) and 32% net margin.

Powermatic is in high-tech engineering. It designs wi-fi solutions for use in various aspects of everyday life, to be more precise. 

You can read more in the couple of articles we have written on it, including quite recently: 

So, it's an imperfect investment world which is not a fantastic environment for shareholders to realise the full potential of their investment.

Powermatic's share liquidity is thin, its management focuses on the business and spends not a big amount of time on investor outreach. 

For incoming investors, though, the share price looks like a dream bargain. 

LQM ad141edrchenmun7.16Dr Chen Mun, executive chairman and CEO of Powermatic Data Systems. NextInsight file photoThe need for more and faster connections over the internet from businesses, public places, households and consumers continues unabated. This has propelled growing demand for reliable and high performance wireless connectivity devices. The Group's expertise in design and manufacturing of wireless connectivity products has gained increasing recognition and acceptance in the market place. However, competition and cost pressure are expected to remain intense, this applies to our OEM and ODM customers as well. There will be up and downs in our business. Overall, we are confident in maintaining profitability and growth for the coming year."

-- Powermatic Data Systems.
See its 1HFY18 results statement here.

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings3.280-0.020
Avi-Tech Electronics0.250-0.005
Best World1.680-
Broadway Ind0.0920.002
China Sunsine0.3950.005
Delfi Limited1.1500.030
Food Empire1.1000.010
Fortress Minerals0.290-0.010
Geo Energy Res0.275-0.005
GSS Energy0.028-
Hong Leong Finance2.4900.020
Hongkong Land (USD)3.190-
ISDN Holdings0.330-0.005
IX Biopharma0.043-
Jiutian Chemical0.025-
KSH Holdings0.290-
Leader Env0.0530.003
Medtecs Intl0.1410.005
Nordic Group0.400-
Oxley Holdings0.099-0.001
REX International0.167-0.001
Sinostar PEC0.135-
Southern Alliance Mining0.670-0.005
Straco Corp.0.470-0.015
Sunpower Group0.240-
The Trendlines0.0910.001
Totm Technologies0.038-
Uni-Asia Group0.905-0.030
Wilmar Intl3.610-
Yangzijiang Shipbldg1.5000.050

We have 794 guests and no members online

rss_2 NextInsight - Latest News