Starburst Holdings

If Starburst can maintain its growth and recurring income, its current valuation is indeed low. Those who can take the risk can expect good rewards too. It is a trade off.

I am vested because of its growth story, the current small profit in absolute value which allows it to grow much easily, high management ownership and good financial position.

Found a more detailed report.

http://www.nextinsight.net/index.php/sto...7-c-target

Niche defence play. Starburst is one of the very few integrated suppliers who design, manufacture, install and upkeep anti-ricochet ballistic protection systems for firearm training facilities.

Since its inception in 1999, Starburst has built a track record with different defence departments in the region. A key aim of the company’s IPO this July is to raise funds to double its production capacity to undertake bigger contracts.

Beneficiary of higher defence spending in SEA & the Middle East. SEA is actively upgrading and modernizing facilities, partly to protect critical infrastructures whereas in the Middle East, the implementation of compulsory military services is propelling demand for new shooting ranges in Qatar, UAE and Kuwait.

Most of all, Saudi Arabia, the biggest spender on defence, continues to push up military budget by 21% in 2014.

Steady earnings growth from FY14F-16F. Starburst is bidding for ten contracts worth >S$100m over the next 2-3 years and its recurring Maintenance income will expand along with a higher installed base. We believe its niche capability and higher barrier to entry would support net margins of >30%.

BUY, TP of S$0.77 is based on 11x FY15 PE, which is pegged to 25% discount to peers’ average of 15x forward PE. We estimate that Starburst will return 2.1% yield based on 20% payout on FY14 earnings.

Sorry for spamming, but here is the full report:

http://www.remisiers.org/cms_images/rese...rburst.pdf

Accumulated more at 0.6 today. I remain optimistic about the companies future. This is the highest percentage in my portfolio currently.

Results released today. Revenue increased more than 100% YoY. Net profit fell but its mainly due to a one-off IPO expense of 1.2 mil. Otherwise it's a 64% gain YoY. Net gain in cash as well.

No dividend declared.

Vested.

(12-11-2014, 06:05 PM)LocalOptimal Wrote: Results released today. Revenue increased more than 100% YoY. Net profit fell but its mainly due to a one-off IPO expense of 1.2 mil. Otherwise it's a 64% gain YoY. Net gain in cash as well.

No dividend declared.

Vested.

Adding to this, 3Q EPS would have been 1.12 without the one time IPO expense. My estimate for FY2014 EPS is 6.5 - 6.8 and therefore forward PE ratio with the current price of 0.59 on my estimate is around 8 - 9. Still cheap in my opinion.

(Vested)

(12-11-2014, 06:34 PM)Bubbachuck Wrote:

(12-11-2014, 06:05 PM)LocalOptimal Wrote: Results released today. Revenue increased more than 100% YoY. Net profit fell but its mainly due to a one-off IPO expense of 1.2 mil. Otherwise it's a 64% gain YoY. Net gain in cash as well.

No dividend declared.

Vested.

Adding to this, 3Q EPS would have been 1.12 without the one time IPO expense. My estimate for FY2014 EPS is 6.5 - 6.8 and therefore forward PE ratio with the current price of 0.59 on my estimate is around 8 - 9. Still cheap in my opinion.

(Vested)

Guys is this a good result or expected? The stock remained quite stagnant today.

(12-11-2014, 06:41 PM)Shoguns Wrote:

(12-11-2014, 06:34 PM)Bubbachuck Wrote:

(12-11-2014, 06:05 PM)LocalOptimal Wrote: Results released today. Revenue increased more than 100% YoY. Net profit fell but its mainly due to a one-off IPO expense of 1.2 mil. Otherwise it's a 64% gain YoY. Net gain in cash as well.

No dividend declared.

Vested.

Adding to this, 3Q EPS would have been 1.12 without the one time IPO expense. My estimate for FY2014 EPS is 6.5 - 6.8 and therefore forward PE ratio with the current price of 0.59 on my estimate is around 8 - 9. Still cheap in my opinion.

(Vested)

Guys is this a good result or expected? The stock remained quite stagnant today.

Very good result for me. Price is only a reference for me as I focus on business and not on the price. [emoji106]

Summary as follows :

2013
Gross margin - 58.2% (3M)/60.7% (9M)
Profit margin (minus the write back) - 16.4% (3M)/23% (9M)

2014
Gross margin - 63.4% (3M)/62.6% (9M)
Profit margin (minus ipo cost) - 37.1%(3M)/ 40.9% (9M)

(12-11-2014, 06:45 PM)Bubbachuck Wrote:

(12-11-2014, 06:41 PM)Shoguns Wrote:

(12-11-2014, 06:34 PM)Bubbachuck Wrote:

(12-11-2014, 06:05 PM)LocalOptimal Wrote: Results released today. Revenue increased more than 100% YoY. Net profit fell but its mainly due to a one-off IPO expense of 1.2 mil. Otherwise it's a 64% gain YoY. Net gain in cash as well.

No dividend declared.

Vested.

Adding to this, 3Q EPS would have been 1.12 without the one time IPO expense. My estimate for FY2014 EPS is 6.5 - 6.8 and therefore forward PE ratio with the current price of 0.59 on my estimate is around 8 - 9. Still cheap in my opinion.

(Vested)

Guys is this a good result or expected? The stock remained quite stagnant today.

Very good result for me. Price is only a reference for me as I focus on business and not on the price. [emoji106]

I share the same sentiments. Will be looking to add more soon.