Share w you my thoughts on Ntegrator, a turnaround company.
Ntegrator was profitable in 2015 and 2016. It got into a loss situation in 2017
and 2018. The loss was attributed to loss in revenue in their Vietnam operations
because of some technical issues. Since then the technical issues have been
resolved.
From the latest datas, it seems to me that the company has turned around.
It shows a profit of 389K in 2nd half 2018. It was profitable again in 1st half 2019.
On revenue of $14.8 mil the company has a profit of 306K on 1st half of 2019.
Given its huge book order of $87.5 as of end June 2019, the 2nd half result is
likely to be better than its1st half. So, financial ending Dec 2019 is likely to be
good.
The profit trend is likely to flow through to the year 2020 for the following
reasons:
1. existing huge book order
2. higher contribution from its project management and maintainance services
which is a more stable n reliable source of income. On turnover of $13.1 mil
it contributed $3.8 mil of gross profit.
3. likely projects from Vietnam as technical issues have been resolved
Will share reasons why i am vested if time permits.
With a proven track record, the Group considers companies such as
Viettel (the largest Telco operator in Vietnam), Singtel, M1 and the
Government of Myanmar as part of its well established customer base.
In addition, the Group is supported by loyal key suppliers, including
Alcatel Lucent and ECI Telecom &ndash all leadingplayers in their respective
fields.
... end of quote ...
It seems that the company has good quality customers.
profitable on 2nd half 2018 and profitable on 1st half 2019
2. profit n revenue likely to grow in the next reporting season
1st half was profitable on revenue of $14.8 mil. 2nd half profit is likely
to be better given its huge book order of $87.5 mil
3. absolute low price of 0.9 cts. (less than 1.0 cts}
Before 3 June 2018, the share price was trading at 1.2 cts or higher.
It even hit a high of 13.3 cts on 2nd Oct 2013. Its all time high was
on 26 Mar 2006 when it closed at 18.0 cts. This is 20 times its
current price.
4. potentially under valued
Company is currently capitalised at $9.5 mil. Further profit growth will
lead it to be under valued.
5. trading below nav
current nav is 1.71 cts against current price of 0.9 cts.
6. current profit is supported by Project Management and
Maintainance Services segment.
This segment has a recurring revenue characteristic. In 1st half of 2019,
this segment contributed $13.0 mil revenue and gross profit of $3.8 mil.
Above are just my analysis and I could be wrong. Pls do your own
due diligence if you are interested in the counter.
What does Ntegrator do?
Ntegrator specialises in design, installation and implementation of data, video, fibre optics,
wireless and cellular network infrastructure, and voice communication systems. The Group
also provides a wide range of other services such as outside plant services, including fibre
cable installation and pipe laying, project management services as well as maintenance
and support services.
Who are the customers?
With a proven track record, the Group considers companies such as Viettel (the largest Telco
operator in Vietnam), Singtel, M1 and the Government of Myanmar as part of its well
established customer base. In addition, the Group is supported by loyal key suppliers, including
Alcatel Lucent and ECI Telecom &ndash all leading players in their respective fields.
VIETNAM is the fastest-growing digital economy in the region, in large part due to investment inflow which is still on an unprecedented rise. Over the last four years, approximately US$1 billion in funding has poured into Vietnam's e-commerce sector, reaching a record high in...
