This company just reported strong profits in its FY2013. The jump from FY2012 was 199%, which reflected strong performance of the company.
It is going to issue out about 12.5% dividend yield to shareholders this financial year, which is very attractive for shareholders.
However, the problem with this company is that it lacked analyst reports on the stock, and many people are not aware of this stock yet.
Its main currency is in HK and they are an IT solutions provider, mostly for the Hong Kong government departments. They deal mainly with maintanance and support contracts and several large scale software development projects.
I'm buying this stock tomorrow. My advice to you is to recognize this stock before the market do. :)
as per suggetions from : www.sgx-stockpicks.blogspot.com/p/blog-page.html
ReplyDeletei dont find this stock in SGX
A bloomberg link for you Anshul.
ReplyDeletehttp://www.bloomberg.com/quote/AZEUS:SP
Good luck!
May i know what is the main business of this company?
ReplyDeleteThey are doing big scale it projects mostly government linked entities. A mini version of IBM.
ReplyDeleteIt sounds like a good company that is pricing well below it's intrinsic value, but then what about the qualitative part of the business? Would you mind telling me how does the company actually earn $$$ ??? I'm afraid it may be a value trap
ReplyDeleteSoftware development can be very lucrative, especially big projects. And companies like Azeus already have the experience to do such projects mostly for government-linked entities. And if you read up on CMMI level 5, they are specialized in continually improving process performance.
ReplyDeleteBoth software development and maintenance contracts are cost-effective because the major resources required to deliver are their staff.
Maintanance contracts can be easy money if there are very few or close no non-technical failures.
Software Development on the other hand, can also be sold to other entities via software licenses and so, they can reuse the same project.
An example of a profitable company like this would be Silverlake Axis, which is listed on SGX.
Their abiity to generate cash flow will enable the company to grow at a better and healthier rate.
Thanks for sharing, do they have a good management and do you know why the earnings for 09 or 10 was so low?
ReplyDeleteEarnings for 2010 wasn't low. It was close to 2012 earnings. The management team good or not is very subjective. But looking at the earnings from 2012 and the contracts they win in 2011, they are poised to grow at a sustainable rate.
ReplyDeleteAnd looking at their cashflow from 2009 till now, they are holding on to very positive cash flow and no debts. This is really good for a company to grow because they have the necessary resources and not affected by increasing interest rates in the coming months when they Fed start to reduce QE.
P.S, I mean why was the net profit in 2009 slow, hope you wont mind me asking so much about the company. I'll agree with you that the company has good cash flow and no debt which is very very good if wants to grow rapidly.
ReplyDeletehaha no worries. There are also a lot of unknowns within the company. And by asking questions, you can solve more of the unknowns.
ReplyDeleteFirst of all, there are a lot of unbilled revenue during that period. Customers have not paid up, most probably due to the lehman crisis during that period which caused many companies to lost a lot of money. Looking at the revenue at that period, they are still doing well despite a crisis.
Secondly, expenses went up due to employee compensation, lawsuit expenses, repair and maintenance expenses and also hardware purchases.
Repair and maintenance expenses could mean their clients hardware broke down, and thus have to spend money to replace or repair.
Hardware could have failed and new hardware could be bought. Or probably upgrading their office with new computers.
A major part of the low profit could be due to the lehman crisis as mentioned earlier.
Hmm... Sounds legit, hey btw, hope you don't mind if I'm to ask you your opinions about some stock. What do you think about comfortdelgro, fundamentally their really great but their debts maybe be a little problematic, what do you think?
ReplyDeleteHi Alex,
ReplyDeleteYou don't have to worry much about their debts too much. They have enough cash to pay back their debts. And furthermore, they are paying very little interests for such a huge debt.
In my opinion if these interest rates stay low for long, I would hold on to these debts for a long time. Because with such a high cash flow, i can seize any opportunities to grow my company.
Hope that answer your question.
Hi Lancelot,
ReplyDeleteI chanced on your blog and thought it was very well thought out with good ideas for the stocks that you recommend.
Just wondering, how do you compare Azeus with Silverlake? Is Azeus' growth sustainable?
* I am vested in Silverlake.
This is very nice post thanks for sharing this type of post Singapore stock recommendations is necessary part at time of intraday trading.
ReplyDeleteIf the investingSGX blog also contains some hows related to online forex signals will be more better for a beginner as well as experienced one.
ReplyDelete