Stratech Group

(08-05-2015, 04:30 PM)Curiousparty Wrote: One way to find out whether Stratech can respond to the higher level of work orders from its clients is to dwell deeper into its staffing structure and whether it has been actively hiring more project managers and where they deploy their managers.

Does anyone have any idea pls? many tks.

http://sg.jobsdb.com/SG/en/Search/FindJo...JSSRC=JDFT

Stratech Systems Ltd
COMPETITIVE ADVANTAGE THROUGH TECHNOLOGY ........
Stratech Systems Limited is an innovative technology-intensive solutions provider with the capability to cater to businesses of the new IT-powered economy. Equipped with state-of-the-art technology, we provide world-class IT systems to both government and corporate customers, especially in the areas of transportation, healthcare, defence, education and e-Business.

With a longstanding commitment to create a Competitive Advantage through Technology, we have now established ourselves as a leading developer of large-scale IT systems and infrastructure. Our sights are set on expanding our core competencies in 3D Computer Vision, Intelligent Transport Systems and e-Business Infrastructure. If you are a creative, dynamic, talented and articulate individual, we invite you to come explore the exciting convergence of business and technology with us.

PROJECT MANAGERS

Responsibilities:
Liaise with sub-contractor for fabrication, design and project work
Perform outdoor structure design / verification / testing
Perform outdoor environment protection design for surveillance equipment
Ability to generate project management plan and component
Ensure timely delivery of projects according to schedule
Assist to generate Variation Orders and assist in Pre-Sales
Responsible for P/L against the project budget
Updating of project accounting for reporting purposes
Requirements :
Degree/Diploma, preferably in Mechanical, Electrical, Information Technology or equivalent
At least 5 – 8 years relevant experience in project management
Must be CITPM or PMP certified
Ability to plan, organizes, control work, have a structured approached to problem solving
Be adaptable, demonstrate initiative and result-oriented
Possess excellent inter-personal communication, presentation and business writing skills
Engineering or Mechanical background preferred
Only Singaporeans need to apply
Please apply with a detailed resume, email address and
expected salary to:

The Human Resources Department
Stratech Systems Limited
31 International Business Park
#02-02 Creative Resource
Singapore 609921

PHILLIP SECURITIES RESEARCH 6 May 2015
The Stratech Group Limited

So how much could it be worth?
iFerret appears to be gaining traction with new contract wins. Share price has risen 63.2% since we first highlighted the stock six months ago. No stock rating provided, but we look at relative valuation of Stratech compared to global peers.

What is the news?
We first highlighted Stratech in our report on 12 November 2014. Since then, the stock price had dipped 31.6%, subsequently recovered and has now pushed to new highs. The stock price has risen 63.2% from when we first highlighted the stock six months ago. We summarise the recent developments since our last report.

February 2015: Announced contract to install iFerret at Hong Kong International Airport (HKIA). April 2015: Restructured from Stratech Systems Ltd to The Stratech Group Ltd. Announced contract to upgrade the iFerret at Changi Airport which is estimated to contribute S$1.7 million revenue.

Investment Thesis
Aviation safety coming under greater scrutiny. Global air traffic forecasted to grow 4.5% CAGR until 2030 (Source: ICAO). Recent aviation tragedies will likely place pressure on Aviation Authorities to tighten up on safety. Adoption is inevitable, just a matter of time. The most high-profile FOD-related accident involved an Air France Concorde taking off from Paris in July 2000. FOD damage is estimated to cost US$4 billion annually from aircraft repairs & maintenance, and up to US$13 billion annually. (Source: FAA) Key product of the iFerret appears to be gaining traction. Stratech recently announced two contracts. One for the installation of the iFerret at HKIA, and the upgrade of the iFerret at Changi Airport. The iFerret had also displaced the incumbent system at the Dubai International Airport last year.

Investment Merits
Oligopoly market structure with high barriers to entry. With a few players in the market, competition will inevitably be less intense than in a highly fragmented market. Superior technology over competitors. The iFerret could become the de facto standard globally at both civil airports and military airbases.

Investment Actions
We do not provide a rating but we look at two scenarios and possible values of the stock. Contingent on the successful adoption of the iFerret globally, Stratech's stock value could range from 4.0 Cents (steady state) to 6.9 Cents (high-growth stage) based on P/B valuation methodology.

Hi

Could u share with us your model for derivation the valuation of Stratech? many tks.

(07-05-2015, 02:19 PM)littleones Wrote:

(07-05-2015, 02:14 PM)Curiousparty Wrote: At a steady state,

Key assumptions are (might be flawed)
1. 33% of revenue each year goes to partners for each airport (just a general assumption)
2. $47mil over 7yrs = $6.7 mil per year (Hong Kong airport case, just an example)
3. So, Stratech gets to keep say $4.5mil per year.
4. NPM = 20%. So net profit per year (over the 7 yr period) = $0.9mil (per airport like Hong Kong)
5. Say, overall, Stratech manages to secure contract for 15 airports at steady state, we would have ~ $13.5mil per year (over 7 yrs)
6. Assume P/E of 19, market cap works out to be $256 mil.

Current market cap ~ $50mil

My guesstimate for Stratech is that it's share price should be above 25 cents this time next year, bringing its market cap to at least $375 million

Correct me if I'm wrong, Radar has certain weakness such as inability to pick up soft objects and because it is active, it could interfere with sensors mounted outside the aircrafts or other equipments on the runways. Stratech's vision tech which is passive, serve better.

(11-05-2015, 04:19 PM)turnngrow Wrote: Correct me if I'm wrong, Radar has certain weakness such as inability to pick up soft objects and because it is active, it could interfere with sensors mounted outside the aircrafts or other equipments on the runways. Stratech's vision tech which is passive, serve better.

This reminds me of physics. Very right. Is iferret based on visual sensors? Would thick fog interfere with its reliability?

think the technology behind the product is sound and usable. iFerret is hardly a breakthrough must have product like the "iPhone" or "iPOD"

basically you can BUY the story which is kinda getting old....

you can't really buy the fundamentals which honestly still look pretty shoddy.

Don't think it can operates well in thick fog condition under which airport would also stop to function anyway. Beside surveillance, one big advantage of iferret is the recording of scene...so that any accidents are not subject to guess work anymore. Remember the SQ accident in Taiwan?

Ended at 4.4 cents today!!!

Stratech has applied to SGX for extension of 1 year so that it can work to improve its accounts so that it can be removed from watch list.

Value is in the eye of beholder. Those who bought massively at around 2 to 2.3 cents would have made a big pile and laughing all the way. Those who bought below 2cents might have locked in some profits by now.

I guess for Stratech to continue its momentum, it has to convince the market that it really can continue to secure NEW and BIG contract wins with reputable airports.

http://www.nextinsight.net/index.php/sto...g-with-ceo

I almost forgot to post this. Not vested, and until the company promises any kind of dividend policy in the case of profit, then will I consider. Imo, the Ceo is paid way too much for an underperforming company, does not align to my personal investing principles.

Note: the listing falls under "the Stratech group", so will need to monitor under "t" on sgx. Though I think as typical convention follows, "s" on valuebuddies makes sense to me.

For those lazy to read through, profit dropped year on year. The story doesn't meet the numbers, and net margins are rather low.

http://infopub.sgx.com/Apps?A=COW_CorpAn...ca93ff7a9c


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