PS Group supply quality fasteners with a product range in excess of 15,000 different types and size of fasteners and supply to 200 customers in more than 45 countries.
As you can see from the financials above, the revenue has been pretty stagnant for the last 3 years and the progit before tax was on a declining trend, dropping from $1.9m in FY2010 to $1.3m in FY2012.
The EPS assuming the service agreement has been in place and enlarged share cap will be 1.68 cents and that translates into a historical PER of around 14.9x, which isn't exactly cheap. The market cap post IPO will be $17m.
The Company intends to pay at least 30% of its net profit after tax for FY2013 and FY2014 as dividends. Assuming EPS remains at 1.68 cents, the dividend per share will be 1.68 x 30% = 0.504 cents. This translate into a yield of around 2%.
The company is held by Mr. Teo Choon Hock (38.5%) and Mr. Kwek Keng Seng (31.5%) with the public holding the balance 30%.
This is a small cap company with a net margin of less than 10% in a challenging industry where barriers to entry is pretty low . The business is probably stable but not going to see a lot of growth. Unless you are into small caps, i will probably give it a miss from a fundamental view (not that you can apply for it at the ATM anyway). Probably the small float means that most of the shares are placed out to friends and family. ^_^
Happy watching (from the sidelines again).