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Tuesday, 8 January 2013

Logistics Holdings Limited



Logistics Holdings Limited ("the Company) launched its IPO for a Catalist listing via placement of 42.075m shares where 31.875m are New shares and the balance vendor shares at $0.23 each. The prospectus is here.

The Company has a track record of 27 years and is principally engaged in building and construction works for government and government related bodies. The IPO will be listed on 18 Jan 2013 at 9am. Since this is a "Placement only" IPO, there is no public tranche. 

Financials


Based on the enlarged share cap of 170m shares and assuming the service agreement was in place, the EPS for FY2012 = Singapore 2.576 cents. This translate into a listing PER of 8.9x. The market cap based on the IPO price is $39m.

Shareholding


Strong Hands?

Not sure who Lim Chye Kim is but he is described as "not related" to the major owners. He invested at 22 cents, which is not much cheaper than the public investors (good sign). Post IPO, he will hold 3.9% of the Company and has undertaken not to sell the company for first 6 months and not to divest more than 50% of his holdings from the 7th to 12th month. Is he the in-house magician that will  perform some magic to the share price post IPO since he will be there for the next 12 months?  Perhaps informed blog readers can shed some light? haha

Dividend Yield

The order books appeared to be very healthy and as of 6 Dec 2012, stand at S$232.90m. The Company intends to distribute not less than 20% of its profit to shareholders as dividends for FY 2013. I am not privy to the forecasts but assuming the profits for FY2013 remained the same as FY2012, the dividends will be 20% x EPS of 2.576 Singapore cents = 0.5152. That translate into a yield of 2.24%.

Clientele

The Company is a long established one and has a "blue chip" clientele of primarily government agencies. That is quite amazing and bad debts is unlikely to be an issue if the company delivered according to the contract specifications.

Fair Value

I will not attempt to give a fair value since there is no public tranche. The recent Kori IPO is still 22% above its IPO price and closed above 14% above its IPO price on the first day. Its performance table below.


If you have been following my blog, you will know how i view small cap catalist companies in the construction industry somemore. hahaha. Probably a big "Avoid" 

Vested

An old friend ask me if i am keen to take some placement shares.  Since this is the first IPO of the year and will list on an auspicious date of 18th Jan, i decided to be part of the action!  Wish me luck? Huat ah.... :) 

Happy IPOing. 

7 comments:

Anonymous said...



Logistics Holdings in the construction business.


So apparently is Tee International.

I keep asking ... can we seriously invest in such companies?

These SMEs may be good living for their owners, but are they good investments for external shareholders?


I suppose time will tell.


=========




Published January 08, 2013


Tee Int'l says Q2 net profit down 32.9%




By

Jasmine Ng

print |email this article





This is despite sales rising 13.5 per cent to $43.97 million, attributable to the recognition of revenue from some of the construction projects awarded last quarter, as well as ongoing projects - PHOTO: SPH











TEE International on Tuesday said its second-quarter net profit declined 32.9 per cent year-on-year to $2.47 million.

This is despite sales rising 13.5 per cent to $43.97 million, attributable to the recognition of revenue from some of the construction projects awarded last quarter, as well as ongoing projects.

On a half-year basis, net profit fell 10 per cent to $5.32 million from a year ago, as revenue lost 5.2 per cent to $74.65 million.

The company has declared an interim dividend of 0.65 cent a share, up from 0.6 cent in the same period last year.

Mr. IPO said...

Haha. Why not u leave a name.. So that I know it's the same person.

Small caps are for those in the know la. You have to trust the management to execute. If you don't know them personally, it is frankly not easy to pick the gems from the stones.

Anonymous said...



Hello Mr IPO. I have stakes, direct, and indirect, in many small companies, over a long period of time.


True, they have to be managed, with a bit of insider info.


However, how can we possibly have so much insider info for so many companies over such a long period of time?

After a while, they become unmanageable.



I still have some doubts about the long-term investibility of SMEs, but of course I hope this investibility problem will gradually improve over time.


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Anonymous said...

Good time to buy-in (buy on dips) --> for those bro starved of IPO, really can consider this stock. tgt price 45c-60c by mid march, buy on dip.

Hi I have been tracking dutyfree for sometime and I am vested in dutyfree, so please read my post with caution as it might be biased (though I try to be as objective as possible. I will first post my tracking of all the dutyfree share buyback recently and then talk about their triple announcements today.
Duty Free Sharebuy back (tracking)
Dec 12, 150 lots, $0.325 = 48,750
Dec 13, 156 lots, $0.328 = 51,168
Dec 14, 20 lots, $0.33 = 6,600
Dec 18, 200 lots, $0.35 = 70,000
Dec 19, 100 lots, $0.35 = 35,000
Dec 21, 220 lots, $0.375 = 82,500
Dec 26, 462 lots, $0.38 = 175,560
Dec 27, 500 lots, $0.38748 = 193,740
Dec 28, 700 lots, $0.38964 = 272,748
Jan 2, 550 lots, $0.39 = 214,500
Jan 3, 350 lots, $0.39714 = 138,999
Jan 4, 840 lots, $0.40471 = 339,956.4
Jan 7, 500 lots, $0.4070 = 203,500
Jan 8, 200 lots, $0.415 = 83,000
Jan 9, 350 lots, $0.42286 = 148,001
Jan 10, 600 lots, $0.42692 = 256,152
Jan 11, 580 lots, $0.42690 = 247, 602
*Jan 14, 980 lots, $0.4156 = 407,288
Total shares till date = 7,458,000
Total Value Bought till date = 2,975,064.4
Average Price (per lot) = 0.3989091
***Crucial Day 14th Jan 2013 Monday, Post Trade Triple Announcement
Triple Dutyfree Annoucement on sgx today after trading hours:
(1) share buyback 980 lots at 0.41561- 6.11 pm
(2) proposed special resolutions to amend articles of association of cpy- 6.09 pm
(3) third quarter results profit before tax up by 15.6% to RM 25 million But Sad thing no dividend- 6.37 pm

Reading 23 page report, with my limited knowledge in Financial Accounting and Finance,

Good News: Profit before tax for the 3rd Quarter only up 15.6% to RM25 million, Profit before tax up to 3rd quarters (includes 1st and 2nd quarter) up 18.1%

Downside (see end report cash flow statement): Negative Cash Flow (red flag) + Break of dividend policy (possible explanations: maybe dividend policy is unsustainable or reserving for special dividend or instead of dividend to share buyback)

Upside: End report talked about land deals worth up to RM350 million to be completed latest 18th March 2013  Special Dividend

Share Price 52 week high: 0.435 (4 lots last Friday 11th Jan 2013 but on the same day also started the selldown and closed at a disappointing 0.42). Today 14th Jan, continue selling down BUT good news is that Dutyfree bought back massive lots 980 at day high prices. Hence should have support the next few days.

Mr. IPO said...

Hi Mr. Dutyfree :)

Thanks for the update. I scanned through the 3rd quarter announcements.

I remembered what stopped me from buying last time was the huge amount of goodwill although i must say the cashflow generation is pretty good.

Always good to see company buying back its own shares. Please drop by again when you see good value emerging.

Let me think about it for a while more :)

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