Negative Goodwill （负商誉）
大红花的季报一出炉，大家都很好奇什么是 “Negative Goodwill - 负商誉”，笔者也不例外。请教了身边一些高手后大概了解了。笔者就用最简单的方式来跟大家解释吧。
先来说说 Goodwill。
当一家公司收购一个资产时，通常都会以比NTA高的价格来收购，这个差价就叫做 “Goodwill”。报帐时会出现在Goodwill of Acquisition。
那么Negative Goodwill是什么呢？
简单来说就是一个公司收购的资产比NTA便宜，比如说一个值RM1mil的资产，被收购价是RM500k，那么这就必须视为Negative Goodwill。但是Negative Goodwill只是账目上的一次性盈利，并非运营盈利 (Operating income)。
为什么会出现像这种可以捡到便宜的情况呢？
通常在一个行业低迷的时候，奄奄一息的小公司已经没有能力经营下去，便会卖掉资产。有能力大公司趁机收购这些资产。这就是为什么M&A (Merger & Acquisition)的活动在经济低迷时比较活跃。
一个行业在低迷的时候，资产估值会被低估。当经济好转时，资产将被重估，就会出现以上这种情况了。
Tuesday 29 May 2018
Monday 28 May 2018
Back after years
Hi everyone, I am back after years. It has been around 3 years ago since my first post. (OMG!)
I treat this platform as a sharing of information hence hereby to disclaim that whatever that is shared here is just for educational purpose and is not for buy call. Please consult your own remisier/dealers or do your own homework before decide to buy / sell.
P/S: Please ignore my previous posts. 😅😅
Thanks & happy investing!😊
I treat this platform as a sharing of information hence hereby to disclaim that whatever that is shared here is just for educational purpose and is not for buy call. Please consult your own remisier/dealers or do your own homework before decide to buy / sell.
P/S: Please ignore my previous posts. 😅😅
Thanks & happy investing!😊
Sunday 27 May 2018
CSE Global Limited (544.SI)
CSE GLOBAL LIMITED (544.SI)
Sector: O&G
Company Background:
1) Leading systems integrator, focusing on the provision and installation of a variety of control systems as well as turnkey telecommunication network and security solutions with an international presence in US, Asia Pacific, Europe, Middle East & Africa regions.
2) Customer base: Oil and gas, infrastructure and mining industries.
3) Revenue contribution by geographical segment – Americas 57%, Asia Pacific 36% & Europe/Middle East/Africa 7%
4) Revenue contribution by industry segment – Oil and gas 68% (50% onshore & 50% offshore), Infrastructure 25% & Mining 7%
Acquisition activities (6 acquisitions at SGD 23 million since 2016):
1) CC American Oilfield – manufacturing and repairing pressure vessels for wellhead oil & gas production in Corpus, Christie, Texas & USA
2) Mobile Masters – delivering two-way radio communication systems and infrastructures in Western Australia
3) Tetracom – delivering two-way radio communication systems and infrastructures in South Australia
4) Ezi Communications – provision of two-way radio communication system in Queensland, Australia
5) Gulf Coast Power & Control of Louisiana – provision of equipment & services for the midstream and downstream O&G industry, mainly Gulf Coast of USA
6) Combined Communication Solutions – provision of two-way radio communication system in Darwin, Australia
Financial highlights (2017 VS 2016):
1) Revenue from America ⬆️ by 30%, Middle East ⬇️ by 43%
2) Revenue from Infrastructure ⬆️ by 55%
3) ⬆️ in revenue but lower profitability due to lower gross margins from oil and gas projects.
4) Dividend – Dividend maintained at 2.75c (2.25c at downturn FY 2016)
5) Board fees has ⬇️ 17% over 3 years (WOW! 😱)
6) Maintained positive operating cashflow even after several acquisition activities was took place
Financial highlights (2018 Q1):
1) Outstanding order book stands at SGD 148.6 million as at Q12018.
2) New orders received decreased by 41.5% due to slow season (Q1 is usually slow) as claimed.
Other Information:
1) Top 20 shareholders holds around 74.71% of the shares.
2) Latest annual report cover’s slogan was “Ready to ride”, “Gathering momentum”. It seems that their management is confident in coming year performance.
Prospect:
Going forward, CSE will continue to improve the effectiveness of its business through
1) Revitalizing its existing solutions and services, improving delivery and new applications,
2) Adding new solutions and services,
3) Retaining and maintaining existing customer relationships,
4) Adding new customers, and
5) Cost control and cash generation
It will continue to explore acquisition opportunities to support its long term sustainable growth objectives & also explore available market opportunities with Serba Dinamik.
Potential Risks:
1) Foreign currency risk – from sales & purchase - USD, GBP, EUR, AUD. Their net investments in foreign subsidiaries are not hedged as the currency positions in respective countries is long-term.
USD – 50% (Benefit from USD weakening)
AUD - 30% (Benefit from AUD weakening)
Other – 20%
2) Acquisition risk - Change in global economic events which is unfavorable (to be monitor)
3) Oil price - indirectly affect CSE as when oil price is unfavorable, O&G customers tends to focus on cost-cuttings
Notes:
1) The group claimed that they have several large projects that will reach billing milestone in Q2 & Q3 2018.
2) With current outstanding order book at PE 8 - 10, the fair value of this stock is around S$0.46 – 0.56. It was traded at S$0.49 as per 25/05/2018’s closing.
However, the future growth of this company can be monitored as the acquisitions was just take place.
3) Serba Dinamik Bhd acquired 24.8% stake in CSE Global.
Disclaimer: Just for sharing purpose. Not buy call.
You may refer to my previous post on Serba Dinamik here: https://www.facebook.com/V.Invest.Together/posts/1974388769543447
Technical Analysis: https://www.facebook.com/V.Invest.Together/posts/1974877639494560
Sector: O&G
Company Background:
1) Leading systems integrator, focusing on the provision and installation of a variety of control systems as well as turnkey telecommunication network and security solutions with an international presence in US, Asia Pacific, Europe, Middle East & Africa regions.
2) Customer base: Oil and gas, infrastructure and mining industries.
3) Revenue contribution by geographical segment – Americas 57%, Asia Pacific 36% & Europe/Middle East/Africa 7%
4) Revenue contribution by industry segment – Oil and gas 68% (50% onshore & 50% offshore), Infrastructure 25% & Mining 7%
Acquisition activities (6 acquisitions at SGD 23 million since 2016):
1) CC American Oilfield – manufacturing and repairing pressure vessels for wellhead oil & gas production in Corpus, Christie, Texas & USA
2) Mobile Masters – delivering two-way radio communication systems and infrastructures in Western Australia
3) Tetracom – delivering two-way radio communication systems and infrastructures in South Australia
4) Ezi Communications – provision of two-way radio communication system in Queensland, Australia
5) Gulf Coast Power & Control of Louisiana – provision of equipment & services for the midstream and downstream O&G industry, mainly Gulf Coast of USA
6) Combined Communication Solutions – provision of two-way radio communication system in Darwin, Australia
Financial highlights (2017 VS 2016):
1) Revenue from America ⬆️ by 30%, Middle East ⬇️ by 43%
2) Revenue from Infrastructure ⬆️ by 55%
3) ⬆️ in revenue but lower profitability due to lower gross margins from oil and gas projects.
4) Dividend – Dividend maintained at 2.75c (2.25c at downturn FY 2016)
5) Board fees has ⬇️ 17% over 3 years (WOW! 😱)
6) Maintained positive operating cashflow even after several acquisition activities was took place
Financial highlights (2018 Q1):
1) Outstanding order book stands at SGD 148.6 million as at Q12018.
2) New orders received decreased by 41.5% due to slow season (Q1 is usually slow) as claimed.
Other Information:
1) Top 20 shareholders holds around 74.71% of the shares.
2) Latest annual report cover’s slogan was “Ready to ride”, “Gathering momentum”. It seems that their management is confident in coming year performance.
Prospect:
Going forward, CSE will continue to improve the effectiveness of its business through
1) Revitalizing its existing solutions and services, improving delivery and new applications,
2) Adding new solutions and services,
3) Retaining and maintaining existing customer relationships,
4) Adding new customers, and
5) Cost control and cash generation
It will continue to explore acquisition opportunities to support its long term sustainable growth objectives & also explore available market opportunities with Serba Dinamik.
Potential Risks:
1) Foreign currency risk – from sales & purchase - USD, GBP, EUR, AUD. Their net investments in foreign subsidiaries are not hedged as the currency positions in respective countries is long-term.
USD – 50% (Benefit from USD weakening)
AUD - 30% (Benefit from AUD weakening)
Other – 20%
2) Acquisition risk - Change in global economic events which is unfavorable (to be monitor)
3) Oil price - indirectly affect CSE as when oil price is unfavorable, O&G customers tends to focus on cost-cuttings
Notes:
1) The group claimed that they have several large projects that will reach billing milestone in Q2 & Q3 2018.
2) With current outstanding order book at PE 8 - 10, the fair value of this stock is around S$0.46 – 0.56. It was traded at S$0.49 as per 25/05/2018’s closing.
However, the future growth of this company can be monitored as the acquisitions was just take place.
3) Serba Dinamik Bhd acquired 24.8% stake in CSE Global.
Disclaimer: Just for sharing purpose. Not buy call.
You may refer to my previous post on Serba Dinamik here: https://www.facebook.com/V.Invest.Together/posts/1974388769543447
Technical Analysis: https://www.facebook.com/V.Invest.Together/posts/1974877639494560
Saturday 26 May 2018
Serba Dinamik Holdings Bhd (5279)
SERBA DINAMIK HOLDINGS BHD (5279)
Sector: O&G
Company Background:
1) Providing engineering solutions to the Oil and Gas & power generation industries with operational facilities in Malaysia, Indonesia, UAE, Bahrain & UK
2) Engineering solutions – O&M (Operations and Maintenance), EPCC (Engineering, Procurement, Construction and Comissioning) & other product and services (compressed natural gas, CNG in Indonesia)
a) O&M – MRO services (Maintenance, Repair and Overhaul) for rotating equipment used in the energy industry. IRM services (Inspection, Repair and Maintenance) for steam boilers
3) Customer base – O&G operators, Gas processors and oil refineries, petrochemical manufacturers, engineering companies and contractors, independent power producers
4) Industries served – O&G Upstream (Production), O&G Downstream (Processing, refining and manufacturing) and Power Generation
5) listed in Bursa on 08 Feb 2017
Projects:
During FYE2017, Serbadk secured 34 additional contracts (non O&G) with an estimated value of approximately RM2.8 billion. Serbadk’s total order book value stands at approximately RM6.0 billion with an average contract duration of 3-5 years.
Contribution in Revenue:
1) O&M – 86%
2) EPCC – 13%
3) Others – 1%
Potential risks:
1) Fluctuation of Oil price - 79.55% of revenue is from O&G clients. Changes in oil price have minimal implication on the company, as long as the production platforms continue production and where maintenance contracts will be utilised
2) Forex risk - exposed to foreign currency risk on sales, purchases and borrowings. Serbadk maintained their cash inflow in a USD denominated bank account which provides natural foreign currency hedge
3) Oversea operational risk – Changes in political & economic factors. Serbadk has expanded their operations across 11 countries and 5 main regions to reduce their exposure to one individual country or region.
Other:
1) About 83.72% of the shares was hold by Top 30 shareholder. Board of director itself holds about 60% of the shares.
2) Acquired 24.8% stake in CSE Global which is listed in SGX. This acquisition will expand Serbadk’s geographical footprint given CSE’s global presence in more than 20 countries, including the USA, Mexico, Australia and New Zealand. 57% of its FY17 revenue was derived from the Americas region, followed by Asia Pacific (37%). Meanwhile, it may also strengthen Serbadk’s capability in IT-related services by potentially integrating CSE’s various IT solution platforms, which include systems automation, integration and packages.
Prospect:
Currently, Serbadk are targeting the Power Generation, Water Treatment and Utilities sectors. As of 31 December 2017, they secured over RM1.74 billion worth of non Oil & Gas related projects mainly focused on the hydro-power generation and water treatment sectors.
Notes:
1) Board of directors is very aggressive in expanding. They also have great vision in the growth of different industries in different countries that allows them to take advantage prior to other competitors. For example,
Malaysia – growing in renewable energy
Indonesia – growing in power generation
Middle East – shifting focus from upstream sector to downstream
Disclaimer: Just for sharing purpose. Not buy call.
Sector: O&G
Company Background:
1) Providing engineering solutions to the Oil and Gas & power generation industries with operational facilities in Malaysia, Indonesia, UAE, Bahrain & UK
2) Engineering solutions – O&M (Operations and Maintenance), EPCC (Engineering, Procurement, Construction and Comissioning) & other product and services (compressed natural gas, CNG in Indonesia)
a) O&M – MRO services (Maintenance, Repair and Overhaul) for rotating equipment used in the energy industry. IRM services (Inspection, Repair and Maintenance) for steam boilers
3) Customer base – O&G operators, Gas processors and oil refineries, petrochemical manufacturers, engineering companies and contractors, independent power producers
4) Industries served – O&G Upstream (Production), O&G Downstream (Processing, refining and manufacturing) and Power Generation
5) listed in Bursa on 08 Feb 2017
Projects:
During FYE2017, Serbadk secured 34 additional contracts (non O&G) with an estimated value of approximately RM2.8 billion. Serbadk’s total order book value stands at approximately RM6.0 billion with an average contract duration of 3-5 years.
Contribution in Revenue:
1) O&M – 86%
2) EPCC – 13%
3) Others – 1%
Potential risks:
1) Fluctuation of Oil price - 79.55% of revenue is from O&G clients. Changes in oil price have minimal implication on the company, as long as the production platforms continue production and where maintenance contracts will be utilised
2) Forex risk - exposed to foreign currency risk on sales, purchases and borrowings. Serbadk maintained their cash inflow in a USD denominated bank account which provides natural foreign currency hedge
3) Oversea operational risk – Changes in political & economic factors. Serbadk has expanded their operations across 11 countries and 5 main regions to reduce their exposure to one individual country or region.
Other:
1) About 83.72% of the shares was hold by Top 30 shareholder. Board of director itself holds about 60% of the shares.
2) Acquired 24.8% stake in CSE Global which is listed in SGX. This acquisition will expand Serbadk’s geographical footprint given CSE’s global presence in more than 20 countries, including the USA, Mexico, Australia and New Zealand. 57% of its FY17 revenue was derived from the Americas region, followed by Asia Pacific (37%). Meanwhile, it may also strengthen Serbadk’s capability in IT-related services by potentially integrating CSE’s various IT solution platforms, which include systems automation, integration and packages.
Prospect:
Currently, Serbadk are targeting the Power Generation, Water Treatment and Utilities sectors. As of 31 December 2017, they secured over RM1.74 billion worth of non Oil & Gas related projects mainly focused on the hydro-power generation and water treatment sectors.
Notes:
1) Board of directors is very aggressive in expanding. They also have great vision in the growth of different industries in different countries that allows them to take advantage prior to other competitors. For example,
Malaysia – growing in renewable energy
Indonesia – growing in power generation
Middle East – shifting focus from upstream sector to downstream
Disclaimer: Just for sharing purpose. Not buy call.
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