VICOM

(12-07-2014, 11:53 AM)thor666 Wrote: One of my friends is scrapping his car this week. The other is looking to get a second hand car after the current Coe expires.

Agree with porkbelly, vicom is a great investment.


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I think what is important for vicom is the no of vehicle testings.
So, this depends on whether people scrap their vehicles earlier than the 3 year free of inspection period. This was the case 7 to 8 years ago, when cars of less than 2/3 years were "scrapped"(exported) because of very low coe prices. Brand new cars were cheaper than older ones. Will it come again?

(12-07-2014, 02:43 PM)mee2 Wrote:

(12-07-2014, 11:53 AM)thor666 Wrote: One of my friends is scrapping his car this week. The other is looking to get a second hand car after the current Coe expires.

Agree with porkbelly, vicom is a great investment.


Sent from my iPad using Tapatalk

I think what is important for vicom is the no of vehicle testings.
So, this depends on whether people scrap their vehicles earlier than the 3 year free of inspection period. This was the case 7 to 8 years ago, when cars of less than 2/3 years were "scrapped"(exported) because of very low coe prices. Brand new cars were cheaper than older ones. Will it come again?

If we looked into the company historical data, the revenue of FY2006-7 (7-8 years ago) were not affected by the low COE then.

It might not affect the company business, when it comes again in the future, IMO

(not vested, but monitoring)

Just some food for thought when I see how some are worried about Vicom business..

looking at the number of cars on the street due to scrap in the coming years, vicom will prob have reduced sales volume down the road.

If the number of testing do go down, what do you guys think car owners will do when Vicom increase the price of their inspection? "Lose" customers? To who?

(vested)

(04-08-2014, 09:34 PM)Iosias Wrote: If the number of testing do go down, what do you guys think car owners will do when Vicom increase the price of their inspection? "Lose" customers? To who?

If Vicom increase price while ST and JTC price remains, of course most car owners will chose the latter two. I owned a car for 8 years and i never once inspect my car at Vicom. I dunno what is great about Vicom which other car inspection companies cant do.

However, i do believe they act like petrol companies. One increase price the rest usually follow suit.

I don't own cars. But since you do, you would know from there are 9 inspection ctrs in sg.

Vicom 5, Sta 2, Jic 2.
From annual report, you would know that of the remaining 4, 2 ctrs from Jic are 78% owned by Vicom.

Quite difficult to completely avoid Vicom. You can only go sin Ming or boon lay.

Anyone can offer views on how this plays out as a business? Price controls and all..
(vested)

http://www.businesstimes.com.sg/premium/...m-20140812

PUBLISHED AUGUST 12, 2014
Vicom's Q2 net gain up 5.5% at S$7.23m
BYMINDY TAN
tanmindy@sph.com.sg @MindyTanBT

VEHICLE inspecting and testing services provider Vicom has reported net profit for the second quarter ended June of S$7.23 million, up 5.5 per cent from S$6.85 million a year ago. This was on the back of revenue rising 2.4 per cent, to S$27.26 million from S$26.62 million.
For the six months ended June, net profit rose 6.5 per cent to S$15.24 million; revenue rose 2.9 per cent to S$54.16 million. A tax-exempt, one-tier interim dividend of 8.75 Singapore cents per ordinary share was declared, to be paid on Aug 26.
On the repairs and maintenance front, the group notched S$357,000 for the second quarter of 2014, compared with S$535,000 a year ago - a 33.3 per cent drop. Its materials and consumables rose 2.7 per cent to S$768,000 from S$748,000 a year ago; contract services fell 20 per cent, to S$1.04 million from S$1.3 million.
Looking ahead, the group said that demand for vehicle testing services was expected to moderate, as more vehicles are expected to be deregistered in the year. The non-vehicle testing business is expected to grow despite keen competition.

(04-08-2014, 09:34 PM)Iosias Wrote: Just some food for thought when I see how some are worried about Vicom business..

looking at the number of cars on the street due to scrap in the coming years, vicom will prob have reduced sales volume down the road.

If the number of testing do go down, what do you guys think car owners will do when Vicom increase the price of their inspection? "Lose" customers? To who?

(vested)

(04-08-2014, 10:25 PM)Iosias Wrote: I don't own cars. But since you do, you would know from there are 9 inspection ctrs in sg.

Vicom 5, Sta 2, Jic 2.
From annual report, you would know that of the remaining 4, 2 ctrs from Jic are 78% owned by Vicom.

Quite difficult to completely avoid Vicom. You can only go sin Ming or boon lay.

Anyone can offer views on how this plays out as a business? Price controls and all..
(vested)

In a quasi-monopoly that you are implying, then prices should be dictated by the company. Anecdotally that doesn't seemed to be the case.

How do you think the ownership of CD and the overseeing of LTA has on Vicom's pricing power? Or as per what we had been discussing, ie quantity of inspection is key determinant?

http://www.businesstimes.com.sg/companie...t-to-s716m

Vicom posts 5.6% rise in Q3 net profit to S$7.16m
By
Claire Huanghuangjy@sph.com.sg@ClaireHuangBT
12 Nov5:50 AM
Singapore

VICOM, a vehicle inspection and testing services provider, has posted a 5.6 per cent year-on-year rise in third quarter net profit on higher business volume.

Net profit for the quarter ended September 30, 2014, came in at S$7.16 million, or 8.08 Singapore cents per share

(12-11-2014, 07:56 AM)greengiraffe Wrote: http://www.businesstimes.com.sg/companie...t-to-s716m

Vicom posts 5.6% rise in Q3 net profit to S$7.16m
By
Claire Huanghuangjy@sph.com.sg@ClaireHuangBT
12 Nov5:50 AM
Singapore

VICOM, a vehicle inspection and testing services provider, has posted a 5.6 per cent year-on-year rise in third quarter net profit on higher business volume.

Net profit for the quarter ended September 30, 2014, came in at S$7.16 million, or 8.08 Singapore cents per share

VICOM's growth is slow and steady, and has sustained at least for the last 10 years. Mr. Market likes certainty in profitability, and VICOM has provided that.

(not vested)

Note that VICOM will be releasing their FY 2014 earnings on February 9, 2015 (Monday) after market close.

Recap:
2014 Interim Dividend = 8.75c/share
2013 Total Dividend = 22.5c/share (70% Payout ratio)
2013 Final cum special dividend = 14.5c/share (8.1 + 6.4)
2013 Interim Dividend = 8.0c/share