VICOM

(13-06-2013, 05:04 PM)Temperament Wrote: GE?... i think all the same reason more or less.

Hi Temp,

sorry, I was really living in the mountains then..
I only started to looking into investing and reading up less than 6 mths..didnt read financial news prior also..

Jus googled and wiki-ed, GE = Great Eastern?
M&A?

(13-06-2013, 05:15 PM)evolance Wrote:

(13-06-2013, 05:04 PM)Temperament Wrote: GE?... i think all the same reason more or less.

Hi Temp,

sorry, I was really living in the mountains then..
I only started to looking into investing and reading up less than 6 mths..didnt read financial news prior also..

Jus googled and wiki-ed, GE = Great Eastern?
M&A?

GE. Insurance belonging OCBC (partially or fully).

total float 88mio, of which ComfortDelgro owns 70%

swee la

The Directors are pleased to declare a tax-exempt one-tier interim dividend of 8.00 cents (2012: 7.50
cents) per ordinary share.

Vicom has been quietly moving up and is now quoted at $5.53 / share. Simply awesome for early investors. I'm just wondering what could be causing the current rerating? Upcoming results? What other catalyst(s) on the horizon?

maybe good to purchase comfort delgro instead? since it owns 70% of Vicom, also comfort delgro's stock price still the same and haven't moved much over the last few months

(22-01-2014, 10:31 AM)valuehunter Wrote: Vicom has been quietly moving up and is now quoted at $5.53 / share. Simply awesome for early investors. I'm just wondering what could be causing the current rerating? Upcoming results? What other catalyst(s) on the horizon?

I think it could be investors putting a higher valuation multiple to the business


VICOM -Resilient business with formidable balance sheet (AM)
VICOM L TD
LAST LOSE S$5.00
FA * VALUE S$6.28
Resilient business with formidable balance sheet

Initiating coverage on VICOM with BUY, TP $6.28. VICOM Ltd has a balance of pro-cyclical and anti-cyclical business segments. Vehicle inspection (anti-cyclical) provides for earnings stability while investors may participate in economic cycle recovery provided for by its subsidiary SETSCO Services.


Resilient income stream. Mandatory vehicle inspections have to be conducted at any of the 9 inspection centers in Singapore. With 7 centers strategically located across Singapore, VICOM captures more than 70% of the market share. Higher COE prices may extend the useful life of a car, thereby increasing the need for VICOM’s services. Furthermore, regulatory changes such as stricter emission standards and the Lemon Law may boost demand for VICOM’s vehicle ancillary services.

Promoting the value of accreditation.SETSCO provides independent testing, inspection, calibration and certification services for companies across multiple industries looking to enhance consumer confidence. Increased focus on compliance with regulatory requirements and conformance to international standards will drive growth of SETSCO Services.

Strong track record. VICOM operates mainly in Singapore, but has achieved remarkable growth in both top-line and bottom-line. In the last ten years, revenue grew at CAGR 9% while net income expanded at a pace of 14%. As long as Singapore continues to attract capital-intensive industries, SETSCO should continue contributing positively to VICOM.

Sustainable dividend yield. VICOM has been paying out more than 60% of its earnings in the last 2 years. Despite the bonus payout, the cash-rich company is able to consistently grow its cash holdings—debt-free balance sheet- at CAGR 24% in the last 5 years through FY12. Moreover, income growth has been growing in the last 10 years.

Valuation at $6.28 using Discounted Dividend Model represents an upside of 26% from VICOM’s current share price. Our target price translates to 18.4x forward earnings, which is still cheaper than foreign-listed peers average of about 20x PE.

it is 5.62 now. i think very hard to go any higher

30 % of cars are 8 - 10 years old.

(22-01-2014, 10:31 AM)valuehunter Wrote: Vicom has been quietly moving up and is now quoted at $5.53 / share. Simply awesome for early investors. I'm just wondering what could be causing the current rerating? Upcoming results? What other catalyst(s) on the horizon?

the biggest catalyst will be the payment of special dividends out of the cash pool that is building up (>70mio as of Sep13) out of a business that is already FCF +ve. Does CDG want the cash?