Venture

Venture - It share price tumble more than 12% from $28.82 to close at $25.29.



This could be due to:

" Shares in the cigarette giant plunged as much as 18 percent after its latest earnings report showed that $4.5 billion spent on four new products are failing to win over new customers. Sales growth of the iQos, a device that heats a tobacco plug without setting it on fire, has been slowing after initial success in Japan.

Philip Morris, which sells Marlboros outside the U.S., reported revenue excluding excise taxes of $6.9 billion, less than the $7.03 billion projected by analysts in a Bloomberg survey. The share decline, to as low as $83.50, was the biggest since the company split from Altria Inc. in 2008. The stock had fallen 4 percent this year through Wednesday’s close of trading. "

quote : https://www.bloomberg.com/news/articles/2018-04-19/philip-morris-sales-disappoint-as-cigarette-demand-slips-further

I think Venture could be one of the contract manufacturer for this iQos product for Philip Morris. I think the declining grow rate for this iQos product may affect their future earnings.

Looking through their financial numbers for the past 5 years, we can notice that the company has been able to consistently growing its Total Revenue from 2,329.551m in 2013 to 4,004.539m in 2017.
This is quite impressive.

Next , we take a look at the Net Income figure which has also been increasing from 131.13m in 2013 to 372.82m in 2017. An increase of almost more than 200%. 

EPS has also been growing at CAGR of 31% from $0.319 in 2013 to $0.943 in 2017. This is growing at a high double digits growth rate which is pretty encouraging.

The Total Assets has also been growing /increasing from 2013 to 2017 as per the table below:

This is a Net Net Position company as can be seen the total current Assets of 2,276.156m is more than sufficient to cover its Total Liabilities of 976.141m. Generally, the company has no problem to service it debts.

Ops cash flow is also very healthy which is clocking at CAGR of 40% as can be seen from the table below, the Ops cash flow in 2013 was 106.5m versus 448.5m in 2017. 

Return of Assets and Return of Equity has also been generally increasing from a low single digit grow to a high single digits grow of 9%. And 7.2% to 18% in 2017..This show that the company is capable of demostrating and enhancing the business value.

I have roughly workout the EPS intrinsic value using CAGR of 31% for past 4 years (2013 to 2017) and a discount factor of 12% ( MOS) , the fair value turns up to be around $24.65 .

Interestingly, i have also tried to workout the Ops cash flow intrinsic value using CAGr of 40% for past 4 years ( 2013-2017) , a discount factor of 12% , the fair value is about $24.00.

Therefore, in my view, the current price of $25.29 is trading at a premium level/ above it fair value.

Also the declining sales for iQos may also affect their rev going forward and it may also impact their fair value.

I think investor has to gauge for themselves whether to lock in profit or exit and wait for further insight for next few quarters results.

Dividend has increased marginally from 50 cents to 60 cents in 2017. Yield is about  2.03%

NAV of $7.08 ,  P/B is 3.38 times.


rolling EPS of 0.994, rolling PE of 24.08 times.

Not a call to buy or sell.

Please do you own due diligence.

Trade/Invest base on your own decision.

quote: Jeremyowtaip,I also dug through some historical financial information on Venture Corp. It gives me the impression that it's operating environment is challenging as revenues, operating profits, net profits have dipped over the past decade but recovered in recent years and especially the most recent FY17, the revenue, operating profit and net profit broke new record high.

The big question is whether going forward, can this global giant leader in the electronics and manufacturing service provider continue to grow and break even more record highs. By the outlook painted by the chairman and CEO in their FY17 annual report, it seems that they are positioning themselves in various areas they serve to foster growth. Their chief financial officer also mentioned in one of the article link below that their clients which are global leaders in electronics and manufacturing industries rely on Venture Corp for their strong R&D capabilities while the clients can focus on what they do best in their own businesses. Thus, the business model of Venture Corp is such that the various clients they serve will be sticky to Venture Corp. However, the chairman and CEO did pointed out that 2018 maybe a volatile year for them.

I am not sure what the chairman and CEO means by year 2018 maybe volatile. We do see a recent news of Philip Morris, one of the many clients which Venture Corp serves which is involved in selling IQOS (I Quit Ordinary Smoking) devices revealed in it's recent earnings call that their sales of IQOS may fall short of their ambitious expectations. According to Venture Corp's FY17 annual report based on the CIMB article link below, only one client accounts for more than 10% of Venture Corp's FY17 revenue of which CIMB thinks it is not Philip Morris. Therefore, this recent negative news will still impact Venture Corp's revenue this year 2018, but it is likely not a significant impact since the potential contribution to Venture Corp's revenue is not more than 10% of it's total revenue.

Venture Corp has strong balance sheet in a net cash position. It has been generating good amount of positive operating cashflows for the past decade. And it's required capital expenditures (capex) every year have been small resulting in high amount of free cashflows generated for the past decade every year. The small amount of capex requirement every year could be so as Venture Corp is more of a service provider for it's clients rather than a manufacturer, therefore it need not expend high capex to purchase a whole lot of plants and equipments.


I also checked up the compounded annual growth rate (CAGR) of it's diluted EPS over the past 5 years since it's profitability has improved over the past 5 years. Venture Corp has grown it's diluted EPS at a CAGR of 20.68% over the past 5 years. Since Venture Corp's latest FY17 performance was an exceptional year and I am not sure whether it can parallel such exceptional performance continually for the next 7 years of a business cycle, I will take a very conservative stance and estimate that it can only grow it's diluted EPS at CAGR of 6% for next 7 years upon it's current record breaking diluted EPS factoring in that the chairman and CEO mentioned before that 2018 is likely a volatile year for them. Therefore assuming this CAGR of 6% for it's diluted EPS going forward, using my method of estimation, I work out the fair share price of Venture Corp to be around $26.65. Based on one of the article link below by CIMB Research, their target price for Venture Corp is $30.81.

Venture Corp last closed at $25.29. Thus, I believe we are about there in terms of a fair share price for it. If an investor is worried whether the share price still has room for falling, then my suggestion is to wait for further price weakness to get it even cheaper or wait for the price to stabilise before buying. The cheaper one gets it below the estimated fair share price, the larger margin of safety one will receive to cushion the impact from Philip Morris affecting Venture Corp. Any further selling of the shares based on what I can see could be an over-exaggerated reaction to the impact from Philip Morris on Venture Corp's performance this year.

Venture Corporation Limited, together with its subsidiaries, provides technology services, products, and solutions in the Asia Pacific. The company operates through Electronics Services Provider, Retail Store Solutions and Industrial, and Components Technology segments. It offers manufacturing, product design and development, engineering, and supply-chain management services to the electronics industry. The company also designs, manufactures, assembles, distributes, and trades in electronic, mechanical, and computer related products and peripherals; manufactures and sells terminal units; develops and markets color imaging products for label printing; designs, integrates, and trades in electronic security systems; and develops and supports information systems. In addition, it engages in the provision of manufacture, design, engineering, customization, and logistics and repair services; manufacture, design, fabrication, stamping and injection, metal punching, and spraying of industrial metal parts, tools, and dies; and design, customization, and marketing of tool-making and precision engineering solutions. Further, the company manufactures plastic injection molds and moldings with secondary processes and subassembly; and provides manufacturing services to electronics equipment manufacturers, as well as offers management services. Additionally, it imports and exports electronic parts, components, equipment, devices, and instruments. Venture Corporation Limited was founded in 1984 and is headquartered in Singapore.

Bank counter

DBS , UOB & OCBC bank counters are having similar chart patterns did you happen to notice that ?

It could well be a push & dump tactics being planned / played out by Big Buyer(BB). So , it is better to be careful not too chase blindly without having a proper plan in place .

Do exercise your own due diligence.

The series of Gap Up is a warning sign and may not likely sustain.

Bank counter may suffer greater fall when market goes into Bear mode or major correction.

Especially with Dow and S&P closing softer/lower last night , we may see some selling effect today .

Not a call to buy or sell.
Trade/invest base on your own decision.

US Stocks close lower as Apple falls, rates rise

• Shares of Apple fell 2.8 percent, while Nvidia, Micron and Advanced Micro Devices all declined at least 2.4 percent following a warning from Taiwan Semiconductor Manufacturing.
• Wall Street also watched out forrising interest rates, as the 10-year Treasury note yield broke above 2.9 percent.

Dow Jones industrial averageclosed 83.18 points lower at 24,664.86, with Apple among the worst-performing stocks in the index. The S&P 500 declined 0.6 percent to 2,693.13 with technology and consumer staples falling 1.1 percent and 3.1 percent, respectively. The Nasdaq composite dropped 0.8 percent to 7,238.06.(cnbc.com)

20 April 2018 :

Dow Jones industrial average fell 201.95 points, or 0.8 percent, to 24,462.94 as Apple dropped 4.1 percent. The Nasdaq compositedeclined 1.3 percent to close at 7,146.13.

The S&P 500 pulled back 0.8 percent to 2,670.14, with tech sliding 1.5 percent. The index also broke below its 50-day moving average, a key technical indicator.

DBS - DBS is a leading financial services group in Asia, with over 280 branches across 18 markets. Our aim is to become “The Asian Bank of Choice for the new Asia”. We are an Asia-centric commercial bank focused on harnessing the region’s long-term potential as the centre of economic gravity shifts eastwards to Asia. To differentiate ourselves, we have developed a unique brand of banking, Banking the Asian Way. We seek to provide a kind of banking that's joyful and trustworthy as we help to transform this region that we live in.

We are distinct from local lenders or global players. As an Asian specialist, we have the reach and sophistication to outcompete local lenders, and deep Asian insights that distinguish us from global competitors.

We seek to intermediate trade and investment flows between Asia’s three key axes of growth – Greater China, South Asia, and Southeast Asia – as well as participate in Asia’s growing affluence. Our key franchises are in Singapore, Hong Kong, China, Taiwan, India and Indonesia.

In Singapore, our home market, we are a universal bank serving all customer segments, including the mass market through the DBS and POSB “People’s Bank” franchise. In other markets, we focus on three lines of business :

• Corporate/Investment banking
  (covering large corporations and institutional investors)
• SME banking
• Wealth management

We see an opportunity to leverage digital technology as a means to reach customers across Asia.

China Sunsine

China Sunsine - It has managed to stage a nice reversal after being sold down as reflected on the chart .

Seems likelike BULL is in control as The price is trading abive its 20 day MA & 50 day MA.

Looks Bullish! It may likely move up to retest $1.49. Breaking out of $1.49/$1.50 with ease + high volume that may likely propel to trend higher to $1.55 then $1.60 and above.

Rolling EPS of 0.116. Rolling PE of 11 times. NAV of 0.668.

Not a call to buy or sell. pls do you own due diligence.

China Sunsine Chemical Holdings Ltd., an investment holding company, engages in the manufacture and sale of rubber chemical products in the People's Republic of China, rest of Asia, the United States, Europe, and internationally. The company offers rubber accelerators, anti-oxidant agents, vulcanizing agents, anti-scorching agents, and insoluble sulphur used for the production of tires and other rubber related products, such as shoes, belts, and hoses. It is also involved in the production and supply of heating power, including preparation and implementation of the project; and hotel and restaurant business. The company offers its products under the Sunsine brand name. It primarily serves the tire companies. The company was incorporated in 2006 and is based in Singapore. China Sunsine Chemical Holdings Ltd. is a subsidiary of Success More Group Limited.


 First, we look at the compounded annual growth rate (CAGR) in revenues for China Sunshine for the past 5 years from 2013 to 2017.

  Total Revenue - is the sum of cash inflows, increase in operating accounts such as receivables and occasionally, unrealized gains generated in the course of Company's Business activities.

 Total revenue has been increasing in double digits growth of almost 50%(CAGR) which is superb. The total revenue has grown from $353M to $562m.

 Next, we are looking at the Net Income which is growing at a multiple of almost 4 times which is $16M from 2013 to a whopping $70.1m for 2017.



Now , we are going to take a look at the Normalized diluted EPS - Normalized Net Income divided by the diluted weighted average share outstanding. It is growing at a CAGR % of 40% which is amazing from 3.3 cents from 2013 to 12.8 cents from 2017.

Next on to their efficiency. China Sunsine's return on assets (ROA) and return on equity (ROE) have maintained well from 2013 to 2017. In fact, I looked at their past trend these two return Metricsand they have maintained well at current levels of ROA (above 25%) and ROE (above 22%). We must realise that it is not easy to maintain the ROA and ROE in any business while it is growing it's assets and shareholders' equity through time. To be able to maintain the same level or even increase the level of ROA and ROE would mean the business has high efficiency. China Sunsine justdemonstrated their high efficiency in their businesses. If they can continue to maintain these same levels of returns, I will be even much more impressed with them.

ROA - is a measure of company profitability relative to total assets. It is calculated by dividing Tax Effective EBIT ( earning before interest and tax) by average total assets over a twelve months period.

ROE - is a measure of company profitability relative to total equity. It is calculated by dividing Tax Effective EBIT ( earning before interest and tax) by average total equity over a twelve months period.

Now on to their liquidity. We see that China Sunsine just got much better at their cash conversion cycle. Now on to their liquidity. We see that China Sunsines just got much better at their cash conversion cycle. The number of days in their cash conversion cycle has decreased significantly over the past 5 year meaning that it takes them much lesser time in number of days to convert cash on hand into even more cash through their operations.he number of days in their cash conversion cycle has decreased significantly over the past 5 year meaning that it takes them much lesser time in number of days to convert cash on hand into even more cash through their operations.
It is taking lesser nos of days to collect the cash from 121 days to 101 days.

We now look at how their balance sheet has changed over time.. I will tabulate the comparison of some important metrics between close to 5 years ago (2013) versus latest financial report (2017).


Current ratio = 1.67 (2013) vs 3.69 (2017) . It measures the company's ability to cover current debts with current assets.It it calculated by dividing total current assets by total current liabilities.

Quick ratio = 1.30 (2013) vs 3.14(2017). It measures the company's ability to cover current debts with liquid current assets. It is calculated by dividing the sum of the cash, short term investments, and account receivable by total current liabilities.

Net Profit Margin = 4.53 (2013) vs 12.46 (2017)

EBITDA Margin = 11.61 ( 2013 vs 21.14 (2017)


I also noticed that they are now a net net company with their current assets more than their total liabilities. 
Total Current Assets - $292.607m vs Total Current Liability of $79.139m.

The Operation cashflow has a great improvement from $27.59m to $79.37m.

Net Change in Cash inflow from $7.11m to $45.56m

I have roughly workout the intrinsic fair value for EPS for past 4 years (2013 - 2017) with CAGR of 40% and discount factor of 25% to come up with a value of $2.51.
I would further factor in a further discount of 20% i.e.$2.51 X 0.8 = $2.00.

The current price of $1.46 may present a further upwards potential of 37% to reach $2.00.

If using the Cash flow to work out the intrinsic value for past 4 years with CAGR of 50% and a discount factor of 25% we may roughly drive the fair value of $1.828.
Let say we factor in another 15% discount which is $1.828 x 0.85 that would give us a estimated fair value of $1.56.

The potential to rise from current price of $1.46 to $1.56 is another 10 cents..

Dyodd

Sunningdale Tech

Sunningdale Tech - From TA point if view, it is heading into bearish mode and oversold territories.

Immediate support is at $1.73/$1.69.

I am getting excited and see some opportunity is surfacing.

Not a call to buy or sell.

Please do your own due diligence.

I have looked through Sunningdale Tech and here are my thoughts on this tech company.

Sunningdale Tech is a leading Asian tooling, plastic injection moulding and precision assembly company. They are currently operating in four main business segments namely automotive, consumer/IT/environment, healthcare and tooling/mould fabrication. They currently have 19 manufacturing facilities spread across 9 countries and as their chairman mentioned, they continue to receive queries from both new and existing customers who recognise their ability to undertake projects on a global scale. So far so good, the background business profile seems to suggest they are a global player in their field.

The chairman in the FY16 annual report did raised a few challenges their businesses constantly face such as foreign exchange movements, rising labour cost, pricing pressure from customers, rising input costs, and structural reforms in China (which affects their China based businesses).

With these backdrop, let us look into their business performance so far over the past decade. First, we look into how their revenues have grown over the past decade. Revenues have grown by a compounded annual growth rate (CAGR) of 6.52% over past decade.

Next, their operating profit has grown by a CAGR of 9.2% over the past decade.

Next, their profit attributable to shareholders has grown by a CAGR of 9.98% over the past decade.

Next, their diluted earnings per share (EPS) has grown by an impressive CAGR of 25.9% over the past decade.

This is a low profit margin company. Let's look at how the profit margins have changed a decade ago compared to now.

Operating profit margin = 4.6% (2007) vs 5.9% (2017)
Profit attributable to shareholders margin = 3.1% (2007) vs 4.3% (2017)

The various profit margins have improved over the past decade though they are generally still at low single digits. The operating profit, profit attributable to shareholders and diluted EPS have all grown faster than revenues. It seems that Sunningdale Tech have managed to keep the various operating expenses well controlled to achieve better operating efficiency. Indeed, the % of operating expenses (excluding finance cost) over revenues have decreased from 12.4% to 9.6% over the past decade. In 2017, operating expenses (excluding finance cost) only made up 9.6% of their revenue. They have been definitely doing well to reduce operating expenses while improving profit margins amidst a challenging business environment they operate in with pricing pressure from customers and rising input cost and labour cost over the past decade.

Now let's look some of the various metrics from their balance sheet and see how have they changed over the past decade.

Current ratio = 1.21 (2007) vs 1.74 (2017)
Quick ratio = 0.39 (2007) vs 0.39 (2017)
Debt to equity ratio = 0.29 (2007) vs 0.28 (2017)
Shareholder equity CAGR = 1.12%

This was a net net company (current assets > total liabilities) a decade ago and a decade later, it still maintains it's net net company status. The company has maintained similar leverage level taken a decade ago and now. It's balance sheet is strong as it has maintained it's net net status over the past decade. However, Sunningdale Tech did not grow it's shareholder equity at high CAGR thus not making their shareholders wealthier at a fast rate.

The returns on assets, returns on equity and returns on invested capital a decade ago were at low single digits of 2.36%, 3.75% and 3.62% respectively. However, the various returns have improved over the past decade and now returns on assets, returns on equity and returns on invested capital stand at 6.98%, 13.28% and 10.75% respectively. Clearly, the management has become more efficient over the past decade in producing better returns. The question now is can the management continue to improve their various returns any further or are these the best they can achieve? This is because the various returns though have improved over the past decade, have also remained stagnant around current levels for the past 3 years.

Next, we look at how their cashflows have grown. Operating cashflows have not grown much at all and remained at about similar levels now as compared to a decade ago. Free cashflows have decreased in their reported FY17 financial results as compared to a decade ago. I noticed the trend of their operating cashflows and free cashflows over the past decade can be quite volatile with some years having more operating cashflows and free cashflows while other years having lesser. Nevertheless, their free cashflows are still able to meet their dividends paid. One may need to watch their future cashflows carefully to make sure their cashflows can continue to grow even while over any single year, it may show volatile swings. If future cashflows do not grow anymore and even show a decreasing trend, then it could be a potential red flag to watch out for.

Nevertheless, Sunningdale Tech has strong balance sheet. But, we will also like to see that it can continue to receive increasing operating and free cashflows from it's businesses as it continues it's growth. Or else, the current assets carried on their balance sheet though looking impressive giving them a net net status and especially made up of a good amount of trade and other receivables, may start to make one worry whether there are any difficulties with collecting cash from these receivables.

Overall, I find Sunningdale Tech still an alright investment for consideration. But based on some of the above potential weak spots such as the weakness of it's cashflows being raised and operating in a constantly challenging environment, I will put it as an alright but not fantastic investment idea.

Valuation wise, if we assume the diluted EPS will continue to grow at a historical CAGR of 25.9% for next 7 years, the fair share price is $9.84. Wait a minute! This is insane! Sunningdale Tech is only trading at $2 now. At $2 now, the market is according a forward CAGR of 1.9% for the diluted EPS of Sunningdale Tech. Either the market is very intelligent or very stupid from what I can see. Perhaps from certain potential weak spots in the businesses such as the volatile cashflows and challenging operating environment as mentioned earlier, the market is discounting Sunningdale Tech.

I also noticed that the diluted EPS of Sunningdale was also volatile as well over the past decade with some years swinging into losses. The significant growth in the diluted EPS came in only from 2015 to 2017. Previous years had much lower diluted EPS registered. Thus, I think it is better to watch out whether Sunningdale Tech can continue to register stable growth in it's diluted EPS. As such, I think I will perhaps follow the market's assumption that Sunningdale Tech will grow it's diluted EPS at CAGR of 1.9% as a conservative measure and see the current traded price of $2 as my final conclusion of it's fair share price. Any upside will have to depend on how Sunningdale Tech can stably grow it's diluted EPS and cashflows over the next 7 years.

Thus, a fair share price of $2 is not too low an estimate (factoring in a margin of safety for the investor) in order to give the company time in future to see whether they can stabilise their growth going forward in these two areas of their diluted EPS and cashflows, minimising their volatilities, and even avoid any potential losses. If they can do that, their share price will certainly have much room to run higher.

NAV of $1.935 ,Rolling EPS is 16.6 cents, PE of 12 times. Dividend of 7.5 cents, Yield is 3.73%

Price/NAV 1.03 times.

SPH

SPH - Friday 28 April it has managed to gain 4 cents higher to close $2.76 pre-XD come Monday. Still on a nice Uptrend mode, has to monitor how it react come Monday after XD.

It has managed to follow- through on 19tb April and went up high to touch $2.78 before closing well at $2.75. Profit taking is taking place after this impressive running up and closed lower at $2.69 on Friday - 20 April .

Short term wise, I think it is still on a uptrend mode And my likely move up to retest $2.78. Breaking out with good volune that may drive the price higher towards $2.80 and above.

XD 30 April.
Trade/invest base on your own decision.

SPH - today price reacted positively with price Gap up and closed well at $2.71 ,up 11 cents. The volume is also super high.

Looks rather bullish! It has hit the resistance level at around $2.72 before profit taking settling down to close at $2.71.

The next resistance level would be at $2.76. Not sure how would this help to bring in good rev to boost their declining print media business.


I think is good to wait and see what it will turn out for the next 1-3 quarter results.

Not a call to buy or sell.

Please do your own due diligence. Trade/ invest base on your own
decision.

Here is the news being released today : Back Listen to news from The Straits Times, The Business Times and Money FM 89.3 on Google Home Singapore, 18 April 2018 – Singapore Press Holdings (SPH), the leading media company in Singapore, has tied up with tech giant Google to deliver news to audiences in an innovative way. Users of Google Home devices will be able to listen to news and podcasts from The Straits Times, The Business Times and SPH Radio’s MONEY FM 89.3 (MoneyFM) by issuing commands to the voice-enabled smart speakers. Users simply need to download the Google Home app, set their device language to “English (Singapore)” and say: “Ok Google, listen to news from The Straits Times” or “Hey Google, play me the news from The Business Times.” They can also set The Straits Times or The Business Times as their preferred news providers to ensure they receive the latest news from these titles. From 20 April 2018, new subscribers to either The Straits Times All-Digital package or The Straits Times All-Digital + Print package will receive a special gift in the form of a Google Home Mini. Alternatively, they can choose to top up $79 instead to receive a Google Home, which is larger in size and boasts better audio quality. Google Home, a range of voice-enabled speakers powered by the Google Assistant, will hit the shelves in Singapore on 20 April. It allows users to listen to news feeds, music, radio and audiobooks hands-free, and also offers responses to spoken questions. SPH will provide four audio feeds for Google Home: A news bulletin from The Straits Times, presented by MONEY FM 89.3; A financial news bulletin from The Business Times, presented by MONEY FM 89.3; A podcast by The Straits Times; and A segment called Need to Know, which offers tips on career development and personal growth, presented by Business Insider Singapore and MONEY FM 89.3

Raffles Medical

Raffles Medical - slowly edging higher , looks pretty encouraging / positive!

 From TA point of view, the current price of $1.17 is staying above its 20 days moving average as well as 50,100 & 200 Days MA.
This is rather bullish! MACD is also rising in a orderly manner and is looking positive to continue to trend higher.

 Short term wise, I think it may likely Re-attempt $1.21 .
 Breaking out of this Price level with ease + high volume that may propel to drive the price higher towards $1.25 then $1.30.

 Trade/invest base on your own decision.

quote : jeremyowtaip
Yeah! This one no need think so much. Long term trend in share price is up supported by general growth in domestic and medical tourism as a baseline support. The potential catalysts are the two new China hospitals which will contribute to it's earnings growth going forward. Even if the initial execution meets with hiccups, I think they will be able to work things out for the longer term as I am confident they have already done their extensive due diligence and ground studies before embarking on the new hospitals. And it is not just one but two new hospitals set up in two separate cities in China. To be able to trigger such a huge expansion project, they must have worked out that on a long term basis, the market there in China have tailwinds favouring demand for private medical healthcare. And Chongqing and Shanghai are two of the largest cities in China which are strategically located with high population and considered few of the important economic centres of China apart from Beijing.

Total Revenue has been consistently increasing from $340.99m in 2013 to $477.58m in 2017.

The Total Revenue is growing at a CAGR of 8.1%. A single digits high ,of which I think is quite good already.

 Operation cash flow has been quite healthy as they are able to generate $71.19m in 2013 to $82 .69m in 2017.

 Net income Margin has been generally declining from 24.89% to 14.82% in 2017.


It might be due to higher material /operation costs. NAV of 40.01 cents. EPS of 4 cents. PE of 27.64 times

 Dividend has been generally increasing from 1.7 cents in 2013 to 2.2 cents in 2017. This is really a welcome news for shareholder .

 For RMG, I have two possible fair values depending on how well it can execute it's new expansion and growth of it's Bugis hospital extension and also it's two China hospitals to grow it's EPS.

For the conservative fair value, it is $1.14 assuming a CAGR of 10% on it's EPS for next 7 years.

 For the more aggressive fair value, it is $1.46 assuming a CAGR of 14% on it's EPS for next 7 years. Thus, any price $1.14 and below is a bargain opportunity. not a call to buy or sell. dyodd.


Raffles Medical Group Ltd engages in the medical clinics operation and other general medical service businesses primarily in Singapore. The company operates through three segments: Healthcare Services, Hospital Services, and Investment Holdings. Its flagship hospital is Raffles Hospital, a tertiary care hospital that offers services, including emergency, cancer, children and women care, traditional Chinese medicine, counselling, dental, diabetes and endocrinology, dialysis, ear nose and throat, eye, family medicine, fertility, health screening, heart, internal medicine, international patients services, neuroscience, pain management, rehabilitation, radiology, Japanese clinic, orthopaedic, skin and aesthetics, surgery, urology, and nuclear medicine services for inpatients and outpatients. The company also operates 100 medical clinics that provide various services, such as general practice/family medicine, emergency, health check, health screening, immunization, travel health, specialty, minor surgery, X-ray, pre-marital screening, and corporate programs; provides health and related insurance; trades in pharmaceutical and nutraceutical products, and diagnostic equipment; and provides healthcare management and consultancy services, as well as specialized medical, medical laboratory, imaging center, dental, and clinical services. In addition, it owns properties; develops IT solutions; provides advisory and medical emergency assistance services; and sells medical kits. The company was founded in 1976 and is based in Singapore.