Thursday, 6 August 2015

CMC Infocomm Limited



CMC Infocomm Limited ("CMC" or the "Company") is offering 24m New Shares at $0.25 each. There will be 21.6m placement shares and a public tranche of 2.4m shares. The IPO will end on 12pm on 11 Aug 2015 and start trading on 13 Aug 2015. The market cap is around S$38m

The Company is a regional communications solutions and services provider with operations in Singapore, Thailand and the Philippines covering four main segments:
  1. In-Building Coverage
  2. Outdoor Construction
  3. Telecommunications Implementation
  4. Maintenance Services
Financial Performance


I am not privy to the projected performance for 2015. Assuming it makes a fully diluted EPS of around 0.36 cents, the PE ratio is still a very high double digit number > 40x.


I don't like the fact that the revenue is overly concentrated in M1.

What i like about the Company
  • It's a regional company with operations in higher growth countries like Thailand and Philippines and not limited to Singapore. 
  • Even though it is a small listing, the majority of the proceeds (66%) will be used for business. The Invitation expenses makes up the balance.
  • Company finally turned around this year for the first 9 months.
  • Interesting corporate shareholders in CMC Engineering and Tee International, which resulted in 84% being locked up.
  • Interesting appointment of Alex Siow as independent director, who used to work as Starhub
Some of my concerns
  • It has a small cap company with short operating history, having started in 2011 and making losses for last 3 years
  • M1 is a major customer at between 34-47% of the revenue! Heavily reliant and M1 is also facing tough environment in Singapore
  • It is a competitive landscape and the Company is right down the value chain with no recurring source of income
  • Seems like a business created by a father for his son...
Mr IPO ratings

I will give it a one Chilli rating - buy only if you are in the mood to punt.

From a fundamental perspective, really nothing to shout about. I don't really like the fact that it is over reliant on M1 as well as the prospects of the sector. The IPO valuation is also too high. I struggle to give it a higher rating for fundamental reasons and will run road if i can make money. (you may want to buy Tee International instead) ^_^ 

Having said that, the free float of 24m is really small and can be easily taken up by friends and family of Tee International and CMC Engineering. It is not too difficult to place out the shares well.

Mr IPO is vested with 100 lots. Let's see how it performs but he won't overstay his welcome and will run road where possible.

38 comments:

Rohaizad Wahid said...

Appreciate the honest assessment as always

Anonymous said...

I like your "run road where possible".
Anyway, good luck to you and huat ah!
From: Dennis.

Anonymous said...

"Thanks to Mr IPO"
When he buys and recommends others to buy, price goes up
THen he sells and price goes down, and these others who follow his recommendation suffer a realised loss.
So, please dont miscommunicate when u write your articles

Anonymous said...

I think 1st day may hit 29-30 cents, then run liao.. profit of 4-5 cents good enough...

Choo Chiang 1st day close 39 cents from IPO price of 35 cents. Thereafter drop back to 36 cents. So sell at 30 cents for CMC Infocomm.

Annoymous said...

what's your guess/view on this IPO's first day likely opening price on 13th aug's 8.59pm?!

Anonymous said...

Open at 27 cents, reaches 30 cents peak, Close at 28 cents

nonton flim online said...

very nice bos..

Jessie Wong said...


SGX stock market is profitable for the tradingpoint of view Singapore stock recommendations is best way to earn money.

Annoymous said...

the writer of this article wrote he is vested with 100 lots in this ipo, so 1) is it he also paid the same price price of 25 cts per each share?! And 2) he also paid a 1% brokerage placement fee for his this 100 lots too?!

Mr. IPO said...

Yes to both your questions...100 lots means 100,000 shares just to be clear...

Mr. IPO said...

Not sure what you saying above about "miscommunicate when you write your articles"

Please be specific ^_^ on which part is unclear? :)

Anonymous said...

How is the new ipo?soo Kee group

Anonymous said...

So looking at the released balloting ratio, what is your guess on tomorrow's likely opening price for this ipo?!

Annoymous said...

The article also wrote 84% of this ipo's shares are locked up, so these 84% of shares is it also bought at 25 cts or were bought at what price by those shareholders?!

Anonymous said...

If you want to criticize, you should at least be brave enough to do it non-anonymously...

Annoymous said...

you are a crazy moron!

I'm not the one that post that remark!

Anonymous said...

May do a Choo Chiang, not much meat, say trading narrow range of 26 to 27cents region..

Anonymous said...

According to the published balloting result, Mr IPO is more gutsy than the CMC Infocomm CEO, who is only vested with 50,000 IPO shares. Mr IPO is be a very privileged person to be vested with 100,000 IPO shares. Even the daughter of CMC Chairman (vested with 81,000 IPO shares) cannot beat you in this placement allotment.

Anonymous said...

Anonymous to Anonymous: please read your zeros carefully lah...

Anonymous to Annonymous: wasn't refering to you lah.. I said "non-anonymously", not "non-annonymously". chill bro =)

Annoymous said...

you are a crazy moron!

The simple word annoymous you this moron also spelt wrongly!

Annoymous said...

that IPO fella lost badly! he said he got 100 placement lots, the price now only 22.5 cts as of now!

Anonymous said...

When things seem to easy to get, better dun get...
IPO Fella can get 100 lots so easily means danger sign is there..

lucky i cut loss at 24.5 cents this morning...

Annoymous said...

21.5 cts as of now!

Annoymous said...

21.5 cts as of now!

Mr. IPO said...

Sometimes I just don't understand... I don't disclose my shareholding, I get "accused" of not diclosing.

I have placement shares but advised readers not to subscribe, I get ridiculed for "losing money".

Really don't know what your guys want. Not that I really care anyway but I just find it hilarious. Lol

LT said...

Mr IPO, some people just want to watch the world burn. Probably jealous of your success and knowledge.

A man is measured by the things that bother him. Keep it up! =)

Mr. IPO said...

Haha thanks for your kinds words 8=)

Mr. IPO said...

Winning and losing is all part of the game. You support during the bad times and hope they remember you during the good times. ^_^ 礼上往来. But still heart pain if lose money though. Hahaha

Annoymous said...

this IPO fella is a sore insincere total loser retard!

And that LT is also a total loser retarded shoe-licking dog!

AC Tan said...

Hi Mr IPO,

Ignore all those haters. Been a follower of your blog since ages ago, please don't let these haters stop you from all the IPOs update.

Looking forward to your Soo Kee analysis soon!

Anonymous said...

AC Tan is also a total loser retard.

this retard total loser IPO fella is always wrong in his predictions on IPO's debut performance. He wrote Choo Chiang and IX Biopharma are NOT good and should avoid but these 2 ipos opened ABOVE their ipo prices for a STAG instead. Then this lousy CMC infocomm he never say avoid and he took big placement, instead this IPO opened BELOW water on it's debut.

Last time that Pahlawan and Tradesman are the good zhun ones on IPO's opening day predictions

Anonymous said...

A real moron. Why are you still visiting this blog? Start your own blog then or better still consult Pahlawan and Tradesman. Are they still around?

Anonymous said...

I have to agree. A mad dog barking. Mr. IPO already said not to subscribe. Stupid fellow.

Anonymous said...

He probably lose too much money from the crash and need someone to vent it out from his own stupidity. Lol. Born Loser

Anonymous said...

To the above 3 retarded moronic total loser stupid scum dogs, you 3 are all retarded moronic total loser mad scum dogs!

Limpeh never even apply for this ipo! Limpeh never even touch this ipo at all! Becos Limpeh last time from that Sabana Reit placement experience already know any ipo placement if brokerage can allot 100 lots placement to client, it means 100% confirmed the ipo is a must avoid becos it will confirmed opened below water.

An average ipo even if a retail client apply 5 million shares, maximum the brokerage will allot him is only around 20-30 lots. This simple thing the above 3 retarded moronic scum total loser ignorant stupid dogs confirmed don't know!

Annoymous said...

Linpeh just noticed another thing, the above 3 retarded total loser stupid mad dogs made their 3 postings in almost the same timing at 21.58pm, 22.01pm and 22.06pm, this means most likely these 3 postings are made by the same balless coward retarded scum total loser mad dog or made by that retarded total loser scum mad dog ipo fella dog itself

Anonymous said...

I bid 500,000 but only manage to get 10,000 allocated from my broker. Mr IPO clearly specified it is only for punting and so I match out at open with minimun losses. Thank you Mr IPO.

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