Buy @ $0.73
Results were out last night. In summary,
- Div = 4ct maintained
- Cash = $39.3Mil (10.85ct / share), recovered from the drop last 2Qs from $41Mil to $25Mil
- Revenue Flat ; Profit Lower (if exclude Extraordinary Gains from Nera Malaysia acquisition)
- Telecom +ve for Both Revenue & Profit but Orders Reduced
- Infocomm Lower for Both Revenue & Profit (Large drop due to Increased Expenses) but Orders Increased
- FY Results shows good Profits from Telecom and much lower profits from Infocomm
- Q4 Results and Order Intake shows a strengthening Infocomm and weakening Telecom, likely continuing into FY14
If we strictly look at FY13 results, it's rather disappointing if we exclude the one-time Gains from Nera Malaysia acquisitions. In fact, prelim reports from OSK DMG & Lim & Tan indicated similar views…
But, if we look at the strategic changes they'd put in place to increase their recurring income from Payment Solutions segment,
- Leasing model – Explains the depletion of Cash in previous Qs to buy Equipments for Leasing
- Leverage on Indonesia network of new controlling shareholder – Indonesia biz was lower FY13 vs FY12
and if they do succeed, we could potentially see growth… Will need to monitor their quarterly financials closely….
Anyway, their maintaining 4ct div + Cash increase is sufficiently reassuring for me… for now… If the price do go up substantially before it xd, I'll likely take some profits… If it goes down, I'll likely buy more.. 😀