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26-09-2017, 09:06 PM
Is there no end to its acquisition activities?
Proposed Acquisition of ER Marketing (S) Pte. Ltd. and Ever Rich Pte. Ltd.
http://infopub.sgx.com/FileOpen/Proposed...eID=471382
An acquisition or so every year, but profitability, cash flow, and dividends show no growth. Debts? Yes, plenty of growth there.
Net Profit
FY10: $2.2m
FY11: $2.8m
FY12: $5.4m (IPO)
FY13: $3m
FY14: $6.4m
FY15: $7.4m
FY16: $6.1m
FY17: $3.3m
FCF: Positive only twice in 9 year history
FY10: -$2.4m
FY11: $0.1m
FY12: -$2.7m
FY12: -$3m (IPO)
FY13: $2.7m
FY14: -$7.4m
FY15: -$1m
FY16: -$3.8m
FY17: -$17.1m
Dividends
FY13: $1.2m
FY14: $3.1m
FY15: $1.52m
FY16: $1.45m
FY17: $1.45m
Gearing ratio: IPO proceeds helped to pay down debts, but it grew again thereafter.
FY10: 48.9%
FY11: 49.7%
FY12: 53.7% (IPO)
FY13: 1.1%
FY14: 38.3%
FY15: 56%
FY16: 177%
FY17: 191%
It seems that management is more interested in growing into a food conglomerate with businesses in different parts of the supply chain, but that are mostly unrelated to each other. There is little in synergy and benefit to the overall group performance. Taking on so much debt to fund to expand and fund acquisitions which have yet to yield anything. Why should it be selling at a p/e of 30?
Proposed Acquisition of ER Marketing (S) Pte. Ltd. and Ever Rich Pte. Ltd.
http://infopub.sgx.com/FileOpen/Proposed...eID=471382
An acquisition or so every year, but profitability, cash flow, and dividends show no growth. Debts? Yes, plenty of growth there.
Net Profit
FY10: $2.2m
FY11: $2.8m
FY12: $5.4m (IPO)
FY13: $3m
FY14: $6.4m
FY15: $7.4m
FY16: $6.1m
FY17: $3.3m
FCF: Positive only twice in 9 year history
FY10: -$2.4m
FY11: $0.1m
FY12: -$2.7m
FY12: -$3m (IPO)
FY13: $2.7m
FY14: -$7.4m
FY15: -$1m
FY16: -$3.8m
FY17: -$17.1m
Dividends
FY13: $1.2m
FY14: $3.1m
FY15: $1.52m
FY16: $1.45m
FY17: $1.45m
Gearing ratio: IPO proceeds helped to pay down debts, but it grew again thereafter.
FY10: 48.9%
FY11: 49.7%
FY12: 53.7% (IPO)
FY13: 1.1%
FY14: 38.3%
FY15: 56%
FY16: 177%
FY17: 191%
It seems that management is more interested in growing into a food conglomerate with businesses in different parts of the supply chain, but that are mostly unrelated to each other. There is little in synergy and benefit to the overall group performance. Taking on so much debt to fund to expand and fund acquisitions which have yet to yield anything. Why should it be selling at a p/e of 30?