Chasen operated at a loss of S$1.5 mil in financial year 2016.
It has turnaround this current year. Profit for the 9 months
current year stands at S$1.3 mil. If current profit hold, full year
profits are likely to be above S$2 mil.
Price earning ratio (pe ratio):
PE for 9 months for current year is 8.9x. If 4th quarter results is as
good as 3rd, the profit for the full year would be around S$2.5 mil.
Company is currently capitalised at S$12 mil. A profit of S$2.5 will
give the company a PE ratio of 4.8x. This implies that the company
is under valued.
Given the improvements in top n bottom line in the last 3 quarters,
there is a fair chance that the 3rd quarter profit could be maintained.
NTA
Current price of 3.6 cts is 80% below its nta of 18.6 cts.
Cash / debt
Company has cash n cash equivalent of S$8.8 mil against debt
of S$33 mil. The cash backing per share is 2.6 cts which is fairly
close to the last traded price of 3.6 cts.
Dividends
Company has been consistent in giving dividends though the level
of dividends fluctuates. A divdend of 0.05 cts was declared in the
last financial year giving a yield of 1.39%. Previous years (2013 to
2015) dividends were between 0.01 to 0.2 cts per share. With
improved profits, dividend could be higher for this financial year.
Price history
52 weeks high is 6.2 cts and low is 1.9 cts. Price on date of posting is
3.6 cts.
5 year high is 45.1 and low is 1.9 cts.
Conclusion:
In conclusion, i like the counter for the following reasons:
its trading far below its nta level, its showing improvements in top
and bottom line in the last 3 quarters, it gives dividend, its trading
at 40plus % below its 52 weeks high. Balance sheet looks ok and
every share is backed up with 2.6 cts cash.
Company would be grossly under valued if company is able to
hold its profit at the 3rd quarter level of S$1.2 mil.
Note: I am vested. Above are just my thoughts and I could be very
wrong in my projection/analysis. The posting is intend for sharing
and is not a call to buy or sell.
Just for info, below are the results of mine 3 posts in 2016 -
1. Ezion. Date posted – 21 Sept '16. Price on date of post – 27 cts.
Today's closing 38 cts. Up 40 %.
2. Sinostar Pec. Date posted – 10 oct '16. Price on date of post –
12.5 cts. Today's closing – 16.3 cts. Up 30.4 %.
3. Mermaid Maritime. Date posted – 27 oct '16. Price on date of post
- 11.8 cts. Today's closing – 23 cts. Up 94.9 %.
Am also vested in 2 other counters – Excelpoint n Serial System.
Both are high dividend yielding stocks and both are expected to
report good 4th quarter results.
" The commencement of the relocation projects across all geographical regions in the
Specialist Relocation Segment, the increased manufacturing activities within the Technical and Engineering Business Segment as well as the growing Indo-China cross-border freight business within the Third Party Logistics Business Segment, are expected to contribute positively to the Group' s performance.
Barring unforeseen circumstances, the Group expect to remain profitable this financial year"
Specialist Relocation Segment, Technical and Engineering Business Segment and
Third Party Logistics Business segment.
These 3 segments are spread across the geographical regions of
Malaysia and the People' s Republic of China.
Chasen reported on 10 Feb ' 16 that it' s revenue improvements were from all segments
of their business and also across all geographical regions. See quote below:
Quote:
" For the quarter (Q3 FY2017) and nine months (9MFY 2017) ended 31 December 2016, Group's revenue of $29.7 million and $73.9 million respectively were higher than the corresponding periods in last year by 41% or $8.6 million and 8% or $5.4 million respectively.
This was mainly due to higher revenue from all Business Segments particularly from Specialist Relocation and Technical and Engineering Business Segments across the geographic regions of Malaysia and the People's Republic of China (hereafter PRC)
- end of quote -
Last edit: 7 years 8 months ago by josephyeo. Reason: paragraphing
