Libra Group

[Musicwhiz]

A newly-listed company, Libra Group does M&E if I am not wrong.

It's taking a massive plunge today after speculation pushed it up to unrealistic valuations. As of this writing, down 17.5c (30%) to 39.5 cents from a closing high of 57c the previous day. It actually touched a high of 58.5c.

Read that the same is happening for Malaysian penny stocks - pushed up to unrealistic levels, but that's for another thread.

[Nick]

What was the IPO price ?

[Musicwhiz]

What was the IPO price ?

It was 21 cents. Either somebody is massively optimistic, the Group has wild growth expectations, or someone's gonna get hurt badly. Whichever the case, my duty is to avoid such speculative punts.

[LionFlyer]

What was the IPO price ?

It was 21 cents. Either somebody is massively optimistic, the Group has wild growth expectations, or someone's gonna get hurt badly. Whichever the case, my duty is to avoid such speculative punts.

Announcement on SGX is that their pre-IPO investor dump 4 million shares on the 15th. And he got it at a 25% discount to the IPO price in consideration of a $850k loan. Classic pump and dump.

I thought the memorandum was in place to prevent this from happening?

[Harvest Time]

Good 1H 2014 result

EPS 3 cents for 1H 2014.

http://infopub.sgx.com/FileOpen/LibraGro...eID=310170

http://infopub.sgx.com/FileOpen/LibraGro...eID=310169

[cfa]

SIGNIFICANT EARNINGS AND DIVIDENDS GROWTH AHEAD
- FY13-15F earnings growth at 288% CAGR
- Good value here at 2.7x forward PE
- Conviction BUY with S$0.33 FV

We initiate coverage on Libra Group as our conviction BUY in the small-cap space with a fair value estimate of S$0.33. Based on an analysis of this M&E specialist’s order book, upcoming FY14 earnings is forecasted to increase a whopping 8.0 times YoY to S$4.7m. We further forecast FY15 earnings to grow 68.0% YoY to S$7.8m as the new management team, who took over operations in 1Q14, continues to expand and position the company to capitalize on the healthy public construction outlook. We highlight that this under-the-radar company is already showing initial signs for an earnings upswing: 1H14 earnings had jumped 218.1% YoY to S$3.0m. We believe Libra represents good value here at only 2.7x FY15 forward P/E (versus a peer average of 7.4x). In addition, the group’s dividend yield is forecasted to jump dramatically from 1.6% last year to 8.1% in FY14 and 9.7% in FY15. Our fair value estimate of Libra is based on an undemanding 4.8x forward FY15 PE, which represents a 35% discount versus its peer average. Increased visibility of Libra’s earnings and dividends growth ahead will likely form compelling re-rating catalysts for its share price, in our view.




Research Team
+65 6531 9800
info@ocbc-research.com
www.ocbcresearch.com

[greengiraffe]

Analysts got his mates and family in liao?

Dun Even Know Such Co Existed
GG

SIGNIFICANT EARNINGS AND DIVIDENDS GROWTH AHEAD
- FY13-15F earnings growth at 288% CAGR
- Good value here at 2.7x forward PE
- Conviction BUY with S$0.33 FV

We initiate coverage on Libra Group as our conviction BUY in the small-cap space with a fair value estimate of S$0.33. Based on an analysis of this M&E specialist’s order book, upcoming FY14 earnings is forecasted to increase a whopping 8.0 times YoY to S$4.7m. We further forecast FY15 earnings to grow 68.0% YoY to S$7.8m as the new management team, who took over operations in 1Q14, continues to expand and position the company to capitalize on the healthy public construction outlook. We highlight that this under-the-radar company is already showing initial signs for an earnings upswing: 1H14 earnings had jumped 218.1% YoY to S$3.0m. We believe Libra represents good value here at only 2.7x FY15 forward P/E (versus a peer average of 7.4x). In addition, the group’s dividend yield is forecasted to jump dramatically from 1.6% last year to 8.1% in FY14 and 9.7% in FY15. Our fair value estimate of Libra is based on an undemanding 4.8x forward FY15 PE, which represents a 35% discount versus its peer average. Increased visibility of Libra’s earnings and dividends growth ahead will likely form compelling re-rating catalysts for its share price, in our view.




Research Team
+65 6531 9800
info@ocbc-research.com
www.ocbcresearch.com

[DP28]

Actually many of the old rich doesnt push their counters to become "hot cakes". While I appluad OCBC research trying to innovate themselve to cover small cap space but Its also foreseeable that liquidity will dry up when their coverage is forgotten.

Interesting to note, will be on my watchlist as I see some earning visibility like Kingwan.

Analysts got his mates and family in liao?

Dun Even Know Such Co Existed
GG

SIGNIFICANT EARNINGS AND DIVIDENDS GROWTH AHEAD
- FY13-15F earnings growth at 288% CAGR
- Good value here at 2.7x forward PE
- Conviction BUY with S$0.33 FV

We initiate coverage on Libra Group as our conviction BUY in the small-cap space with a fair value estimate of S$0.33. Based on an analysis of this M&E specialist’s order book, upcoming FY14 earnings is forecasted to increase a whopping 8.0 times YoY to S$4.7m. We further forecast FY15 earnings to grow 68.0% YoY to S$7.8m as the new management team, who took over operations in 1Q14, continues to expand and position the company to capitalize on the healthy public construction outlook. We highlight that this under-the-radar company is already showing initial signs for an earnings upswing: 1H14 earnings had jumped 218.1% YoY to S$3.0m. We believe Libra represents good value here at only 2.7x FY15 forward P/E (versus a peer average of 7.4x). In addition, the group’s dividend yield is forecasted to jump dramatically from 1.6% last year to 8.1% in FY14 and 9.7% in FY15. Our fair value estimate of Libra is based on an undemanding 4.8x forward FY15 PE, which represents a 35% discount versus its peer average. Increased visibility of Libra’s earnings and dividends growth ahead will likely form compelling re-rating catalysts for its share price, in our view.




Research Team
+65 6531 9800
info@ocbc-research.com
www.ocbcresearch.com

[nsengkia]

Must be very careful how I phrase this so I will simply state facts without commenting.

On 26 September 2014, Libra entered into a placement agreement with OCBC Securities Private Limited for the issue and allotment of new ordinary shares in the capital of Libra at an issue price of S$0.20 per Placement Share (see
http://infopub.sgx.com/FileOpen/LGL-Ann-...eID=316064 )

Prior to the completion of the Placement on 13 October 2014 (see http://infopub.sgx.com/FileOpen/LGL-Plac...eID=317979 ), the share price of Libra dropped below the Placement issue price.

And today I note the posting that OCBC Research has initiated initiate coverage on Libra Group as their conviction BUY in the small-cap space with a fair value estimate of S$0.33.

[nsengkia]

More facts.

On 1 Oct 14, Libra announced the resignation of Dr Zhou, their Vice President, Marketing and Business Development. Under Other Relevant Information provided in their announcement, Libra stated that Mr Chu Sau Ben, the Executive Chairman and Chief Executive Officer of the Company, will be overseeing the marketing and business development of the Group pursuant to Dr. Zhou's cessation.

Libra's announcement on 19 Feb 14 is also noteworthy. Libra announced the resignation of Dr Zhang Jian, their Executive Director, President and Chief Executive Officer. Also under Other Relevant Information provided in their announcement, Libra stated that Mr Chu Sau Ben, the Executive Chairman of the Group, will assume the role of Chief Executive Officer and will be responsible for the overall management, strategic planning and business development of the Group.

If buddies are interested, Libra's SGX announcements also mention other interesting resignations over the last year e.g. Dr Zhang's predecessor as Executive Director and CEO on 18 Nov 13, their CFO on 28 Jun 13 and their ID on 24 Apr 13.

Nonetheless, as I do operate a quantitative investment methodology so I am vested in Libra in a small way as I try hard NOT to second guess my system but only moderate my exposure.

Cheers!