Lantrovision

[dydx]

Lantrovision has just released a set of very good full-year results for FY14 (ended 30Jun14)…..
http://infopub.sgx.com/FileOpen/LanTroVi...eID=310849

A $0.03/share Final dividend declared.

[Bluechipfan]

Lantrovision has just released a set of very good full-year results for FY14 (ended 30Jun14)…..
http://infopub.sgx.com/FileOpen/LanTroVi...eID=310849

A $0.03/share Final dividend declared.

Good yield. No xd date yet and it's interesting to see price movements from now till xd date.

[ValueBeliever]

Thanks to DyDx, I had followed your earlier call and vested some!! Much of the confidence was due to management ability in showing that they are capable of sustaining the business growth and profit despite fierce competition. I m not sure of their market share but base my judgement on the low operating cost and the growth in Cloud internet, the trend in the industry could well be more than 5%, base Lantro result of 20% topline? The other key point is that it has a high cash value and that probably gave them an edge in their commercial bid.


Project base work carry risk (eg. if you read Pteris) if the project is delayed without compensation. Management must remain wary of delay which can hit margin. With increase in technology/security risk in network, I hope the management remains vigilant on project execution. All SMEs in Spore must continue to upgrade workers and ground level management skill otherwise they risk competition from other neighboring countries. Looking at the spread of work from other regions, Lantro looks like it still capable of competing externally (approx 50% of revenue is from outside SPore).

DyDx is well ahead of the analyst, so it pays to read some of the comments and make your own judgement. Management last bought their shares in the mid 50+ so I guess they must have anticipate the higher dividend down the road - raising dividend by 50%!

[dydx]

A closer look at the latest FY14 result will reveal the following important observations:

(1) Lantrovision has managed to increase revenue in 8 Asian countries - Singapore, Hong Kong, Malaysia, China Philippines, India, Taiwan, and Korea - at a healthy rate in FY14. The group's business is now supported by diversified and growing markets, as well as a diversified and growing customer base - isn't this awesome!

(2) Profit margins - GP Margin, OP Margin, PBT Margin, and NP Margin - of the group business are now increasing at rates much higher and faster than Revenue. In FY14, Revenue went up 14% YoY, whereas GP Margin increased 18% YoY, OP Margin up 47% YoY, PBT Margin up 50% YoY, and NP Margin up 53% YoY. Not only business volume and revenue growth, there is clear evidence of good pricing power, additional profit margins being derived from increasing scale and operating leverage, tight management of fixed overhead at group level, and achieving growth and higher profits without the need for borrowings. The business continues to bring in very strong FCF and in FY14 delivered $0.056/share in FCF (after tax but before capex) vs. $0.038 in FY13. All signs are pointing towards a further increase in FY15 at least.

(3) The cash pile from retained earnings in the group continues to grow. If we factor the amount of equity and own cash used to finance/support trade receivables (mainly from prime-name customers), actually Lantrovision is now sitting on some $100.0m - equivalent to a whopping $0.37/share - in net cash reserve. Very obviously this is excessive, so sooner or later there should be a big payout.

While lantrovision is no longer a cheap stock, however it does appear to me there are strong merits for a further re-rating of this solid and very well managed business.

[BlueKelah]

thanks for the update dydx,

At $0.645

Net cash level is now 48% of market cap.
Div Yield is now up to 4.65%

Given that the div yield was compressed to 3.2% before the annual report, price could continue to climb up to 75cents if yield is compressed further to 4% from 4.65% and possibly $1 if yield is compressed to 3%.

[yawnyawn]

Phillip Securities had a TP of $0.72 on 21 Aug after the recent FY result.

http://www.nextinsight.net/index.php/sto...-72-cents-

(not vested)

[dydx]

Apparently Lantrovision held a corporate presentation recently with the following slides…..
http://infopub.sgx.com/FileOpen/Lantrovi...eID=313286

The evolution and financial trends of the underlying business remain positive.

[dydx]

3Q results just out…..
http://infopub.sgx.com/FileOpen/LanTroVi...eID=324155

Lantrovision is another steady, steady business which doesn't require additional capital to grow its regional footprint.

[Bubbachuck]

However, Net cash generated from operating activities has decreased by approximately S$7.1 million as a result of higher working capital requirements. Is it a concern?

[BlueKelah]

No one update? Found this when looking at announcement as share jumped a bit this past week.

17-Nov-2014
YEO JIEW YEW (Non-Executive Director since 2008)
1,552,000 SHARES
S$0.525644 PER SHARE via market transaction
Percentage of float 8.29%

Big chunk in one go on dividend payout date. So he reinvested his dividends plus some extra $$ from his pocket. Smart move.

-I also got-