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ZGL - ZICOM GROUP LIMITED


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In reply to: obelix on Monday 25/08/08 02:37pm

Profit growth was a little slower than expected by people like me who were aiming for high growth.

 

We will need to see the annual but at a pe of just on four and with large revenue growth locked in for next year it would seem to be a great buy at current levels.

 

The balance sheet is also laden with cash and they have virtually no debt (we shall see the latest version in a few days and I expect that statement to remain correct).

 

I hope it all works out but if they can grow at 20-25% this year you will then have a company with a nice history of strong growth over 5+ years (check pre the back door listing records) trading on a pe of around 3. Logic says 10 is easily achievable.

 

Regards,

James

 

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  • 1 year later...
Not the easiest to value James being in Singaporean dollars; bit of manipulation in my model. I notice the profit guidance that came out on 18 August had eps at S4.86c which they equated to AUD4.47c, which seems a bit high as AUD$ has been around 0.85. If they can make money in the other segments outside of marine, they'll take off. Still compelling. Don't hold.
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love this stock. conservative. strong balance sheet. low gearing. top management that themselves for ever buy on market and already controls by far the mojority of this stock. talk about confidence. you can not go wrong on this. a no brainer. :))) i hold heaps.
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  • 2 weeks later...

Just wondering how leveraged their "offshore, marine, oil & gas" sector is, or can be, to the gorgon projects and others in the area. ZGL is already undervalued, but could be drastically undervalued if they can get their claws into that geographic market.

 

Products manufactured: Deck Machinery viz winches, windlasses, capstans, deck cranes, derricks, cable laying & life boat davits, shark jaws, towing pins.

 

Not directly comparable, but MRM on a PE of 20 and ZGL less than 4 :o

 

Cheers

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yeh I hold some of these, admittedly i dont know much about them cept it has a low pe, was trying to work out today if they could get any gorgon work...? Where does most of their work come, doesnt seem like they announce bigger contact wins etc
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The vast majority of their operational profit comes from the marine sector. My understanding is the nature of their business doesn't usually involve big ticket contracts. But its early stages in our relationship, the only background I've picked up is from their website, annual report and a couple of people I know in the industry.

 

Cheers

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  • 1 year later...

Anybody on here invested in these? Last post nearly two years ago.

They are an ASX listed asian manufacturer of equipment including cement mixers, condensate recovery plants, offshore marine equipment, hydraulic drives for agricultural equipment, precision engineered medical equipment etc.

They havent sat back during the recent financial crisis but have increased their capacity, building a new factory in Thailand as well as a few small acquisitions.

NPAT over the last three halves has increased from S$3.61m to 6.53m and last half 8.69m.

If the last half result is repeated in this half PE will be 5.

Ventrade, which acquired the bulk of their shares in 2004 for just over S$500,000 have been selling down their stake at a substantial profit over the last year or so, putting a bit of a cap on the shareprice. There is a buyback in place with 16million shares still to buy, which was suspended while half year results were released.

Only other disadvantage I can see is that the Sim family seem to treat it as a family company.

May benefit from the rebuilding that is going to be necessary after the recent disasters, and from the rising oil and agricultural prices.

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