Hock Lian Seng Holdings Limited operates as a civil engineering construction company in Singapore. The company operates in two segments, Civil Engineering and Building Materials. The Civil Engineering segment engages in civil engineering works for bridges, expressways, tunnels, mass rapid transit, port facilities, water and sewage facilities, and other infrastructure works. Its customers include government and government-related bodies. The Building Materials segment procures and sells building materials comprising concreting sand and aggregates for building and construction purposes. The company also involves in the rental of property; and leasing of machinery for construction and engineering companies, which consist of excavators, cranes, vibratory rollers, concrete pumps, and bulldozers, as well as slip form pavers, wall saws, and wire saws. Hock Lian Seng Holdings Limited was founded in 1969 and is based in Singapore.
Main reason to bullish on this counter was due to:
1. Total Cash Per Share about 0.30, in other words I only paid 5% premium over it's net cash value.
2. 52 week lowest trading price was 0.26 on 15.07 only 17.5% lower than current share price.
3. Net profit margin 11.81% and ROE 25.06% (2010 3Q data).
4. Current stock price was above 20 & 50 days MA, and 20 days MA was above 50 days MA with increased trading volume.
Also quoted comments from Chinese website forum on 02.12.2010 for reference.
| 1，主营地铁等大型建筑项目，政府计划在若干年地铁扩展一倍，目前新加坡只有三家公司可以做这种大型项目 2. 目前手头项目还可以做1.82年（根据去年的Revenue计算） 3. 上市以来还没有算冲过，价值投资者的安全地带, Forward PE 5.3 4. 营收5年内稳定大幅度增长 5. 净利5年内稳定大幅度增长 6. 毛利率最近三年稳定增长： 11.6% -> 12.4% -> 13.3% (没有以前的数据，故取三年) 7. 营运利率最近三年稳定增长： 8.9% -> 9.7% -> 11.0% 8. 净利率最近三年稳定增长： 8.0% -> 9.5% -> 11.8% 9. 营运现金三年内稳定增长，手头现金及等价物5年稳定增长 10. 手头净现金每股0.30，股价才0.29 12. 收益率（分红）达5.2% 13. Current Ratio 3年逐年增加 14. Gear Ratio 3年逐年下降 |
In conclusion, I am willing to hold this counter for long period in view of it's strong fundamentals and my exit point for this counter will be 0.25 (abt 18.5% lost).
No comments:
Post a Comment