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Neo Group
06-07-2012, 10:25 PM.
Post: #11
RE: Neo Group (IPO)
how was the food

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07-07-2012, 10:47 AM. (This post was last modified: 07-07-2012, 10:47 AM by shanrui_91.)
Post: #12
RE: Neo Group (IPO)
(06-07-2012, 10:25 PM)pianist Wrote: how was the food

there's lot of food review sites around on the web

btw, anyone knows where to get an online prospectus for it? I can't find it anywhere, not even on SGX.

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07-07-2012, 10:54 AM.
Post: #13
RE: Neo Group (IPO)
(07-07-2012, 10:47 AM)shanrui_91 Wrote:
(06-07-2012, 10:25 PM)pianist Wrote: how was the food

there's lot of food review sites around on the web

btw, anyone knows where to get an online prospectus for it? I can't find it anywhere, not even on SGX.

It's here

http://www.sgx.com/wps/wcm/connect/57a32...a840e5ede3

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07-07-2012, 11:10 AM.
Post: #14
RE: Neo Group (IPO)
(07-07-2012, 10:54 AM)Some-one Wrote: It's here

http://www.sgx.com/wps/wcm/connect/57a32...a840e5ede3

Thank you! May I know where did you find it? I can't find it under IPOs or Prospectus

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07-07-2012, 11:31 AM.
Post: #15
RE: Neo Group (IPO)
It would be listed on the Catalist Board

http://www.sgx.com/wps/portal/sgxweb/hom.../catalodge

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07-07-2012, 11:51 AM.
Post: #16
RE: Neo Group (IPO)
I am pretty impressed by its founder Mr Neo Kah Kiat as I have read about him in an article on Straits Times before. Didn't think that they will get listed at that time.

http://www.spring.gov.sg/NewsEvents/ITN/...20425.aspx

Catering is a better business than food retail as seen from their profit margin. I heard from my friend who is working at select catering that the cost of food is cheap but they can market it at a higher prices.

Main reason for the sharp expansion of margin is that "Our purchases and consumables used as a percentage of total revenue declined by 3.0% from 41.4% in FY2010 to 38.4% in FY2011. This decline is attributable to the favourable pricing we were able to enjoy from bulk procurement of raw materials from our suppliers through the establishment of our Food and Catering Supplies Business in FY2011, and our continuing efforts to control and reduce food wastage, and sourcing of supplies at competitive prices"

Key risks involved will be that this seemed to be an industry with little barrier of entry with the existence of many small scale caterers as well. While its brand and reputation are sound, I think that real competitive advantage needs to be built on scale - having the ability to cater to huge orders which a lot of the small caterers will not be able to meet.

Another risk is that most of the leases are negotiated every 3 years or less which will subject them to rental inflation. And as expected, the food retail segment has been making losses for the past 3 years. And their FCF is negative for the past 3 years though this might be due to the expansion of their food retail

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07-07-2012, 12:36 PM.
Post: #17
RE: Neo Group (IPO)
thanks for sharing. retail lease negotiated every 3 years is a norm here i think while in other part of the world, they have negotiation every year.

fcf is negative..hmm.that doesn't seem comfortable

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08-07-2012, 12:00 PM.
Post: #18
RE: Neo Group (IPO)
r u applying for the ipo? i saw its nav is 10cents

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09-07-2012, 10:00 AM. (This post was last modified: 09-07-2012, 10:02 AM by shanrui_91.)
Post: #19
RE: Neo Group (IPO)
(08-07-2012, 12:00 PM)pianist Wrote: r u applying for the ipo? i saw its nav is 10cents

While I am impressed by the fonuder I am not going to buy the stock. I am not interested in IPO in more than 90% of the time, though it is always great to read prospectus to gain some insights

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09-07-2012, 11:26 AM.
Post: #20
RE: Neo Group (IPO)
Stagging IPOs can be quite profitable especially when my investment fund was low.
It was one of my favourite activites in the earlier day of investment since the potential gain of stagging is actually quite high.

Since there is a good possibility of some money left on the table for some of the IPOs, why not take some?
Doing a proper analysed of the IPO will give a good gut feel of whether the stag will be profitable.

Neo group will most likely be above water.
As for IHH, I think the IPO price sucks although it is likely to be above water.(a few cents??)

I had stagged many IPOs but I think none of them remains in my portfolio.

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