Should investors know about the earnings of Samurai 2K Aerosol Ltd’s?

Samurai 2K Aerosol Ltd (SGX: 1C3) is a vaporized covering master with an emphasis on the car revamping and repairing industry. A portion of its brands incorporates Samurai 2K, Samurai and Kurobushi. ( share trading tips)

Prior to this week, Samurai 2K Aerosol reported its money related outcomes for the entire year finished 31 March 2018 (FY2018). Here are 10 things financial specialists should know from the income declaration: 

1. Income for FY2018 came in at RM90.0 million, surging 128.8% year-on-year. The ascent was essential because of higher deals volume, which was helped by continuous advertising endeavors to present an advance Samurai's airborne items. These advertising activities were brought out through advanced channels like web-based social networking, displays and hands-on item exhibits to potential clients. 

2. Indonesia was the biggest supporter of aggregate income at 64.3%, with Malaysia coming in second at 27.2%. Whatever is left of the deals was from Thailand, Vietnam, Philippines, United Kingdom and Singapore. 

3. Net benefit enhanced by 117.7% year-on-year to RM38.7 million. 

4. As the cost of offers expanded quicker than income, net overall revenue for FY2018 boiled down to 43.0% from 45.1% in FY2017. The decay was to a great extent because of the energy about Ringgit Malaysia against Indonesian Rupiah. This realized lower send out pitching costs to Indonesia. 

5. Net benefit for the most recent time frame swelled more than fivefold to RM11.7 million, from RM2.2 million a year prior. Income per share went up 412.6% to 11.38 RM sen. 

6. Samurai 2K Aerosol's monetary record reinforced for the year. As at 31 March 2018, the firm had RM39.3 million in real money and bank adjusts, and RM7.8 million in all-out obligation. This gives a net money position of RM31.5 million. In correlation, as at end-March 2017, the organization had RM10.1 million in net money. 

7. Exchange receivables climbed over 700% year-on-year to RM25.2 million, mostly on the back of higher deals volume. The expansion in exchange receivables, be that as it may, is considerably more than the income increment of 129%. Exchange receivables expanding at a substantially speedier rate than income is a potential warning. 

8. For FY2018, Samurai 2K Aerosol created income from tasks of negative RM1.1 million. A year prior, it created a positive working income of RM5.1 million. With respect to capital use, RM6.4 million was spent amid the most recent time frame while a year back, the fire burned through RM5.9 million. It had no free income to discuss in the two years. 

9. The firm did not announce any profit for FY2018, much the same as in FY2017. 

10. Ong Yoke En, official chief and CEO of Samurai, stated: 

"We keep on growing the Samurai business via doing supported advertising endeavors in all business sectors we are in. We stay focused on R&D, in order to make new licenses and innovations to keep up our market intensity. 

We were as of late conceded the "Single Head 2K System" creation patent by the United States Patent and Trademark Office. This gives Samurai the select appropriate to make, utilize, offer available to be purchased, or offer this innovation all through the USA or import the development into the USA. This holds incredible potential for us given the immense USA advertise. It will be Samurai's next motor of development."source

One Anonymous Singapore Stock That We Would Like

Recently, while I was researching stocks to add to my portfolio, I came across a few Singapore-listed companies that I thought were interesting. A quick search on the internet also showed that these companies are not extensively covered by big-name investment analysts. (singapore penny stocks)

In this article, I will touch on the first company that I like: Advancer Global Ltd(SGX: 43Q). Let’s jump in to find out more about this company and the reasons why I like it.

The business

As a quick background, Advancer Global, which listed in the Singapore stock market in July 2016, is a workforce solutions and services provider in Singapore. It has three business divisions: employment services; facilities management services; and security services.

The company’s services are generally required in both good and bad economic times. Security service is one such example which is defensive in nature (no pun intended). Also, with many working adults not having the time to upkeep their homes and tend to their children and elderly parents, foreign domestic workers are in demand.

The financial numbers

One of the main things to look at before investing in a company is its financial performance. For the full year ended 31 December 2017, Advancer Global’s revenue surged 28.2% year-on-year to S$65.3 million, with all three business divisions performing well for the year. The higher revenue was largely due to increased placements of foreign domestic workers to households in Singapore, a full year's worth of contributions from subsidiaries acquired in the second half of 2016, and higher aggregate service fees charged for on-going security services projects. Meanwhile, net profit attributable to shareholders grew 14.2% to S$3.1 million.

Advancer Global’s customer retention rates for the facilities management and the security services businesses were also admirably high at 87.2% and 93.9%, respectively.

Furthermore, the company has an asset-light business model with low capital expenditure needs. From its initial public offering (IPO) prospectus, it had a capital expenditure of below S$500,000 in each year from 2013 to 2015.

In 2017, even though cash flow from operations tumbled 32.7% to S$2.9 million, free cash flow came in at a commendable S$2.0 million. The free cash flow generated can be used by the company to reinvest into its own business, acquire other businesses, dish out dividends to its shareholders, buy back its own shares, or pay off debt.

Advancer Global has a strong balance sheet as well, which would enable the company to tide through tough economic conditions. As of 31 December 2017, Advancer Global had S$8.0 million in cash and cash equivalents, and total debt of just S$1.9 million. This gives a net cash position of S$6.1 million.

And lastly, Advancer Global has room to grow its dividends, in my view. In 2017, its total dividend was 0.83 Singapore cents per share, representing a dividend payout ratio of just 49.1%. Generally, if a company has a low payout ratio (say, below 80%), it has room for error to maintain its dividend even if its profits were to drop in the future. Source

Would Warren Buffett Be Interested in Valuetronics Holdings Limited ?

My associate, Chong Ser Jing, as of late positioned every one of the stocks in the Singapore showcase as indicated by the Magic Formula, a putting system promoted by Joel Greenblatt in his book, The Little Book That Beats The Market. Ser Jing needed to discover the 30 best stocks in Singapore for 2018, in light of the Magic Formula, and Valuetronics Holdings Limited (SGX: BN2) happened to be one of them. 

Valuetronics is a coordinated hardware producing administrations supplier with its central station in Hong Kong. The firm was established in 1992 and offers an extensive variety of configuration, designing, assembling, and inventory network bolster administrations for electronic and electro-mechanical items. (share trading tips )

Despite the fact that Valuetronics was positioned exceedingly on Greenblatt's Magic Formula, would one of the best speculators on the planet, Warren Buffett, be keen on the organization? We can't ask him face to face, yet we can swing to a six-point obtaining criteria detailed by the Oracle of Omaha to give us a few pieces of information to answer the inquiry. In any case, more vitally, Buffett's agenda, together with the profound jump into Valuetronics' financials that I did as of late, can enable speculators to build up a superior comprehension of the organization. 

With that, how about we swing to Buffett's procurement criteria. 

1. Pre-tax earnings of at least US$75 million

Buffett has this measure set up in light of the fact that the combination he controls, Berkshire Hathaway, is a close US$500 billion behemoth, so his procurement targets should be of a specific size to move the needle for Berkshire. 

In 2017, Valuetronics had pre-impose income of HK$173 million (around US$22 million), which is much lower than the main rule. Retail financial specialists investigating Singapore-recorded organizations, however, ought not be excessively strict about this administer as this may incidentally sifter out some little top quality organizations. 

2. Demonstrated consistent earning power

The second paradigm enables Buffett to decide whether an organization has a stable as well as developing business. Organizations that have a past filled with relentless and developing income have a tendency to have upper hands that assistance their organizations develop after some time. 

The table beneath demonstrates the net benefit for Valuetronics in the course of the last five years:Source: S&P Global Market Intelligence 

With the exception of the dunk in all that really matters in 2016, Valuetronics' net benefit had developed relentlessly from HK$78.7 million out of 2013 to HK$154.1 million of every 2017. This could point to upper hands in the business. 

3. Good returns on equity (ROE) while employing little or no debt

This present model's motivation is like the second: It enables Buffett to recognize organizations with upper hands. For the most part, an organization that has a past filled with producing great ROE while utilizing next to zero obligation has a high shot of having tough upper hands. 

Here's a table representing Valuetronics' arrival on value, and aggregate obligation to-value proportion, from 2013 to 2017:Source: S&P Global Market Intelligence 

The organization finished 2017 with a noteworthy ROE of 17.2% and no obligation. Its money adjust, as at 31 March 2017, remained at HK752.9 million. 

4. Management in place

Buffett incorporated this measure since he would not like to need to give an administration group when he gets an organization. For securities exchange financial specialists like you and me, this standard has no genuine significance, since open recorded organizations quite often have pioneers set up. Be that as it may, this point is an update for us to investigate the general population running an organization while inquiring about a stock. 

The executive and overseeing chief of Valuetronics is Tse Chong Hing, who has more than 25 years of involvement in back and tasks administration in the gadgets producing industry. In Valuetronics, he administers its vital arranging and general administration. 

5. A simple business

As I would see it, Valuetronics isn't a basic business to get it. 

In any case, it is significant that Buffett had this control set up to take into account his hover of skill. He is just intrigued by procuring organizations that he gets it. Running with this line of reasoning, what I believe is an entangled business might be simple for you to comprehend, and the other way around. 

6. An offering price

This is another standard in Buffett's agenda that isn't material for securities exchange speculators, since stocks have cited costs that are effortlessly observed, dissimilar to the private organizations that Buffett assesses for acquisitions. This basis, however, fills in as a valuable update that the value we pay for a stock is basic. 

On the off chance that we overpay for a stock (which means we put resources into a stock at a costly valuation), the odds of our speculation succeeding will be low. An adage from Buffett, "Cost is the thing that you pay, esteem is the thing that you get," seems to be accurate here. 

Coming to Valuetronics, the organization last exchanged at a stock cost of S$0.825 yesterday, giving it a trailing cost to-income proportion of around 10 and a profit yield of near 3%. Source

Keep an Eye on this stocks: Singtel, CapitaLand Commercial Trust, AusNet

The stocks which has affected the Sgx stock market. Singtel on Thursday posted a 19 per cent fall in net profit to S$781 million for its fourth quarter ended March 31, 2018, down from S$963 million a year ago. CCT is buying a majority stake in a prime Frankfurt property for 342.7 million euros (S$542.5 million), which will be partially funded through an equity placement of at least S$212 million. AusNet on Wednesday announced it will invest A$140 million (S$141 million) in construction after being contracted to build a 70 kilometre, 132kV (kilovolt) power transmission line in the Australian state of Victoria.

Singtel

Singtel on Thursday posted a 19 for each penny fall in net benefit to S$781 million for its final quarter finished March 31, 2018, down from S$963 million a year back. This returned on the of unfriendly cash developments, bring down benefits at Telkomsel and Airtel, and in addition bring down commitment from NetLink NBN Trust, following Singtel's lessening to its greatest advantage in the fiber arrange administrator. Income grew 2.8 for each penny to S$4.3 billion. Profit per share were 4.78 Singapore pennies, contrasted with 5.9 pennies a year ago. Singtel has proposed a last common profit for every offer of 10.7 pennies, bringing the aggregate conventional profit per share for the year to 17.5 pennies. (sgx analyst recommendation)

CapitaLand Commercial Trust (CCT)

CCT is purchasing a dominant part stake in a prime Frankfurt property for 342.7 million euros (S$542.5 million), which will be incompletely subsidized through a value position of in any event S$212 million. The private arrangement incorporates the assignment of 130 million new units in CCT to financial specialists at an issue cost amongst S$1.631 and S$1.676 per unit. Situated in Frankfurt's focal business region, the property has a net lettable territory of 436,175 sq ft (40,522 sqm). It is a 38-story Grade A business working with auxiliary retail, and a four-story legacy working for office utilize. Net property wage yield is relied upon to be around 4 for each penny. 

AusNet Services

 AusNet on Wednesday declared it will contribute A$140 million (S$141 million) in development in the wake of being contracted to assemble a 70 kilometer, 132kV (kilovolt) control transmission line in the Australian province of Victoria. Under the agreement, AusNet, which is somewhat possessed by Singapore Power, will get long haul settled qualifications for giving association and system administrations. Development is booked to start in July 2018, and anticipated that would be finished towards the last part of 2019.Source