Starburst Holdings

[bear]

Results out.

If I do simple math and extract the 4th quarter results,

Revenue is around 10m, this is in line with my expectations.

Profit is arnd 2.5m. It is lower than 3Q after accounting for the IPO expense in 3Q. This is where I expect a higher GPM.

1.2 cents dividend declared.

Seems like as a FY, results look good, but most of it came from Q1, afterwhich the profit remained around 2m.

EDIT: Just realised it's a more than 50% decline YoY for Q4.

Yes you are correct,Net Profit for 1H14 is S$10.9million,whereas for 2H14 is a sharp decline to S$2.26million(if remove the charges for one-off IPO is S$3.46million).It seems that they have achieved unusual strong performance back in Q4 FY2013&Q1 FY2014(realized profits around one year ago).

That do seems like a potential bad news,especially in recent months they have not yet announced any big contract wins.

EDIT:To address your question on the estimated values of ongoing/previous contracts,I actually saved a pdf of the DBS report based on the link that you shared in September 2014.

Here's the extract that may indicate roughly the values of the ongoing contracts for the upcoming 2 quarters.
"Orderbook. As at June 2014, the company’s order book
stood at S$45.8m; out of which S$19.7m is derived from
firearm shooting range and tactical training mock-up business
segments and will be translated into revenue over the next
year. The remaining which comes from maintenance services
and others segment would translate into revenues over the
next one to 19 years."

I fear that the report about the order books being large for FY2014 and FY2015 is the "Potential supply,fabrication and installation contract wins" based on the DBS analysts projection on the upcoming 6-12 months when they generate the report in September 2014,which they "expect a total of S$110millions"

"Healthy bidding pipeline underpins positive growth outlook.
We understand from industry sources that opportunities are
abound in the Middle East for the establishment of new
facilities. Hence, we estimate that Starburst could gain some
S$20-30m contracts in this region. In the Southeast Asia
market, we estimate that Starburst could gain another S$80-
90m worth of contracts for both upgrading and new
facilities. All in, we expect a total of S$110m in new contract
wins in 4Q14/2015."