Portek International

This week's The Edge has a good write up on Portek. It has helped me to understand their business better.

Sir MW,

Any summary for me who has no access to The Edge?

Thanks

(28-03-2011, 12:37 AM)guru Wrote: Sir MW,

Any summary for me who has no access to The Edge?

Thanks

Hi there,

I didn't know I was "knighted" haha!

I actually bought the physical copy from a bookstore, so there's no online version I can copy/paste.

To be honest, it was because of an article featuring Boustead, so if I have time, I will try to summarize for both Portek and Boustead.

Cheers.

(28-03-2011, 01:11 AM)Musicwhiz Wrote:

(28-03-2011, 12:37 AM)guru Wrote: Sir MW,

Any summary for me who has no access to The Edge?

Thanks

Hi there,

I didn't know I was "knighted" haha!

I actually bought the physical copy from a bookstore, so there's no online version I can copy/paste.

To be honest, it was because of an article featuring Boustead, so if I have time, I will try to summarize for both Portek and Boustead.

Cheers.

You are more than qualified to be "knighted" due to your service to VB!
Thanks in advance!

Portek shareholders should feel good that Mr Market has finally started to re-rate the share price towards its justified fair value. Based on the 147.889m issued shares (as at 31Dec10) outstanding, and the last done share price of $0.655 (this morning), Portek now has a market cap. of $96.87m.

Using Portek's H1 (ended 31Dec10)-FY11 results as a basis.....
http://info.sgx.com/webcoranncatth.nsf/V...40016C7B6/$file/Portek-Masnet-FY1H2011.pdf?openelement
, and by simply extrapolating the H1's revenue of $65.684m and NP of $7.257m, we can reasonably assume Portek's growing port management and engineering businesses are now running at an annual revenue of approx. $131.4m and bringing in a yearly NP of approx. $14.5m.

The derived PER based on current-year NP is only approx. 6.7x. To me, this certainly appears still way to low for a well-established and growing port infrastructure business!

It pays to review Portek's last FY10 (ended 30Jun10) and corporate website to better appreciate the investment merits and value of this promising local enterprise.....
http://info.sgx.com/listprosp.nsf/07aed3...b00188a79/$FILE/Portek%20International%20Limited%202010%20AR%20(SAR1006020).pdf [FY10 AR]
http://www.portek.com/

I would somehow love to find out the edge interview list for the next 3 months and select stocks from that list. Haha.

Portek owns 49% of Bejaia Port of Algeria. In FY 2010 ended 30 Jun 2010, its 49% share had a net profit of $7.3m from revenue of $18.8m, a net margin of 40%:
************** FY 2010******FY 2009
Revenue *********18,798******14,975
Profit before tax**** 9,667*******6,503
Profit after tax***** 7,315*******4,629
The high margin was the result of mechanisation and efficiency.
If throughput at Bejaia increases by 15%, as claimed by Larry Lam in the Edge, profit should rise more than this percentage in this high fixed cost business.

The articles in Portek's corporate website under headings "Portek Presentations at International Conferences" and "Portek Articles in Industry Journals" are worth reading.

Portek is making another port investment. This time round, it is an inland port in Rwanda.....
http://info.sgx.com/webcoranncatth.nsf/V...100397394/$file/Portek-Announcement-of-Purchase-of-MGR-Incorp-of-PEATL-13-04-2011.pdf?openelement

From the just released announcement on SGX's queries made on Portek's acquisition of Rwanda's main inland port.....
http://info.sgx.com/webcoranncatth.nsf/V...60011C469/$file/PortekInternational_ReponsetoSGX.pdf?openelement
, it appears that SGX's review officers actually looked into Portek's earlier announcement with a fine comb, but perhaps putting too much emphasis on minor matters. Portek's response was sharp and factual - good!