Vicom: Company Profile & Business Model

Posted: May 13, 2014 in Uncategorized

VICOM Ltd is Singapore’s leading provider in technical testing and inspection services. A pioneer in vehicle inspection, The VICOM Group is a subsidiary of ComfortDelGro Corporation Limited, the world’s 2nd largest transport company. It comprises VICOM and JIC Inspection Centres and SETSCO Services. These centres are all located at convenient locations throughout Singapore.
Recognised for our service quality and efficient business practices, our expertise has also extended abroad to countries in Asia and the Middle East. As early as 1985, we were consultant/adviser to OMACO of Saudi Arabia and helped set up inspection centres there. In 1995, we offered consultancy services to MCM (Malaysia) and also Bangladesh. In 2003, we were jointly involved with ATB Services in the vehicle inspection project for Land Transport Department of Brunei.
Corporate Development
Vicom is performing in various business segment and had a vast business expansion plans like:-

  • Chemicals
  • Calibration & Measurement
  • Consumer Goods
  • Construction
  • Electrical & Electronics
  • Environment
  • Food & Biology
  • Industrial & Manufacturing
  • Medical & Pharmaceutical
  • Oil & Gas, Petrochemical
Profit & Loss Q1 FY 2014 Q1 FY 2013 Growth %
Revenue 26,897 26,03 3.31%
Profit Before Tax 9,669 9,144 5.74%
Profit Attributable To Shareholders 8,013 7,463 7.37%

As compare to the other counter in the sector the Tritech is giving good return than any other counter on annual term and is at a right price to enter in the counter.
Reading into Vicom Annual Report
Total Equity increased by $8.1 million to $138.2 million as at 31 March 2014 due mainly to profits generated from operations, partially offset by dividend payment to non controlling interests.
Total Assets increased by $6.1 million to $164.5 million as at 31 March 2014 due to the increase in Current Assets by $6.2 million. Total Liabilities decreased by $2.0 million to $26.3 million as at 31 March 2014 due mainly to the payment of variable bonus in March 2014
The net cash inflow in the quarter was $6.4 million.
Fundamentals Analysis

Fundamentals Values
EPS (S$) 0.321
PE 18.37
Dividend (S$) 0.16
Dividend Yield(%) 2.72
NAV(SGD) 1.55
Market Cap 522.82
Issued & Paid-up Shares 88,614,000
Price / NAV 3.08

Revenue
The Group’s total revenue was $26.9 million for 1Q14 was $0.9 million or 3.3% higher than 1Q13, contributed by higher business volume.
Operating Expenses
The Group’s operating expenses were of $17.4 million for 1Q14 was $0.4 million or 2.3% higher than 1Q13 due mainly to the higher expenses needed to generate the increased revenue.
Operating Profit
Consequently, the Group’s operating profit of $9.5 million for 1Q14 was $0.5 million or 5.2% higher than 1Q13. The Group’s profit before tax of $9.7 million for 1Q14 was $0.5 million or 5.7% higher than 1Q13.
The Group’s Profit attributable to Shareholders of the Company of $8.0 million for 1Q14 was $0.6 million or 7.4% higher than 1Q13
As per the return on the investment and security, Vicom is a good counter to hold for 6 or 12 months to 18 months.
Comparison of Vicom & transport sector.

Return PE Rolling PE Price / NAV Dividend Yield (%)
Vicom 18.378 18.030 3.8060 2.725
TRANSPORT Sector 24.968 25.212 1.5540 3.033

Technical Analysis
Currently the counter is trading in a very range bound phase and had bounded itself into very close Support of 5.8 and Resistance of 5.9 else the tec. Indicator RSI is above the centre line @76.90, is about to go in overbought condition. CCI is @67.17. we can expect the counter to take a up move and break the resistance in coming sessions.
#Bullish Consolidate
After having a detail study on the Vicom the counter is in consolidate up side phase. But overall the counter (Technically & Fundamentally) is in a bullish trend and is good to hold for a long term.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s