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Neo Group
23-08-2018, 05:34 PM.
Post: #71
RE: Neo Group
@ NEO GROUP's AGM: 5 takeaways (aside from the sumptuous lunch!)

Written by Leong Chan Teik
Published: 23 August 2018

Key takeaways:
1. Acquisitions for broad-based "empire"
2. Bolstering balance sheet
3. Turning U-Market around
4. Stock price
5. Grab-and-go hot snacks

More details in https://nextinsight.net/story-archive-ma...roup-s-agm
Specuvestor: Asset - Business - Structure.

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23-08-2018, 11:11 PM.
Post: #72
RE: Neo Group
Indeed. Mr Neo has been acting on his words on building his empire.

Quote:1. Acquisitions for broad-based "empire": Executive chairman Neo Kah Kiat said the company had grown from 3 catering brands in 2012 during its IPO to 8 now, and would continue to make acquisitions. 

"Every year, I will try to acquire one or two catering companies. The targets would be 'smaller' ones for now and we take a selective and cautious approach towards the bigger M&As."

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10-09-2018, 05:48 PM. (This post was last modified: 10-09-2018, 06:26 PM by cyclone.)
Post: #73
RE: Neo Group
Neo Group acquires earnings accretive How’s Catering for S$4.4 million

Neo Group Limited announced today the acquisition of Ye Liang How Catering Service Pte Ltd (“How’s Catering”). This earnings accretive acquisition with an aggregate consideration of approximately S$4.4 million will see the Group taking a 51.0% stake in How’s Catering, while existing owners retain the remaining 49.0%.

With roots that trace back to 1991, How’s Catering has risen to become one of the more renowned food caterers in Singapore that focuses on serving corporate clientele. Apart from corporate customers, How's Catering’s other offerings include catering for thematic and festive events, weddings as well as healthier-choice gourmet spreads.

The acquisition will be funded by a combination of cash amounting approximately S$3.6 million and the issuance of 877,193 new shares at S$0.57 per share. Additionally, an earn out consideration of approximately S$0.3 million will be payable, provided How’s Catering’s aggregate consolidated net profit before tax for the financial period from 1 April 2018 to 31 March 2019 (“FP2019”), financial year ended 31 March 2020 (“NFY2020”) and financial year ended 31 March 2021 (“NFY2021”) is more than S$4.0 million.

More details in :
1. http://infopub.sgx.com/FileOpen/NGL-Hows...eID=524583
2. http://infopub.sgx.com/FileOpen/NGL-Pres...eID=524584
Specuvestor: Asset - Business - Structure.

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10-09-2018, 05:49 PM.
Post: #74
RE: Neo Group
Looks like they are trying to consolidate the industry, does it mean that their organic biz is slowing down?
Full-time Investor and Blogger at https://kelvestor.com/

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29-11-2018, 04:34 PM. (This post was last modified: 29-11-2018, 04:35 PM by weijian.)
Post: #75
RE: Neo Group
It is actually worrying if the singular focus is on revenue growth. But expanding vertically and then horizontally nearby your circle of competence/market, seems like a good move to me (contrast that with Sakae Group)

A whole new ball game for Neo Group

Mr Neo also floated the idea of a listing for the 80.7 per cent-owned Thong Siek unit, which makes DoDo-branded fish paste products. It could go public depending on how it does in the next few years, he said, but declined to give more details.

Neo Group had bought a 55 per cent stake for S$7.35 million in 2015 and raised its interest last month.

And there just seems to be no stopping the shopping. The group announced in April that it would take a 51 per cent stake in Lavish Dine Catering, followed by a similar buy-in with How's Catering in September.

The spate of purchases came even though Neo Group posted losses again in its latest half year. Its net loss shrank to S$236,000 for the six months to Sept 30, down from S$1.2 million in same period the year prior.

Mr Neo attributes the fall into the red to his zeal for new purchases. "If I did not have all these new businesses, I would be profitable. We have one arm that is the most profitable," he said, referring to the catering core.

"So this is the muscle that I have. Then why do I say that I need to continue to acquire? It's because I have one arm that is very profitable and can continue to generate profits. That allows me to continue to acquire. And when we bought Thong Siek, there were significant losses. Now, we have made it profitable. We might also think of spinning it off for a listing."

https://www.businesstimes.com.sg/compani...-neo-group

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30-11-2018, 01:39 AM.
Post: #76
RE: Neo Group
food business strong operating cashflow....
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

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30-11-2018, 08:51 AM.
Post: #77
RE: Neo Group
Mr Neo should pare down company borrowings and debts and stop acquisitions for a while. Let the biz stabilise and grow steadily.

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30-11-2018, 04:59 PM.
Post: #78
RE: Neo Group
Mr Neo seems intent to send the message that he is good at buying loss-making companies and turning them around and then listing them thereafter. But it seems to me that he mentions nothing about buying loss-making companies and having difficulty turning them around.

I am not sure if he is astute at operations but i am very sure he is good with numbers and playing with financials. Sell optimisim, keep the share price high and use the overvalued shares to buy other companies. If this is a way to grow, it is not that bad an idea, but if he can purchase profit-making companies in the first place, i thought it would be a better idea

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01-12-2018, 05:03 PM.
Post: #79
RE: Neo Group
(30-11-2018, 04:59 PM)money Wrote: Mr Neo seems intent to send the message that he is good at buying loss-making companies and turning them around and then listing them thereafter. But it seems to me that he mentions nothing about buying loss-making companies and having difficulty turning them around.

I am not sure if he is astute at operations but i am very sure he is good with numbers and playing with financials. Sell optimisim, keep the share price high and use the overvalued shares to buy other companies. If this is a way to grow, it is not that bad an idea, but if he can purchase profit-making companies in the first place, i thought it would be a better idea

Buying companies whole like Mr Neo did, is probably very similar to an OPMI buying equities - all part of this thing called asset allocation. In asset allocation, the key is to maximize the winners and minimize the losers, rather than only selecting winners/totally avoid losers. I believe all of us prefer to "advertise" our winners, it feels better and is self reinforcing to our own ego. That said, I do tend to agree that there is much more to learn if someone is willing to share the "lessons from their losers".

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