VICOM

[BlueKelah]

Vicom posts 14% fall in FY2020 net profit to S$24.5 million

FY20 final dividend 6.22cents (FY19 6.07 cents final dividend + 3.5275 cents interim dividend)

https://www.businesstimes.com.sg/compani...45-million

expected after the peak of new car sales in 2017

[weijian]

Vicom posts 14% fall in FY2020 net profit to S$24.5 million

FY20 final dividend 6.22cents (FY19 6.07 cents final dividend + 3.5275 cents interim dividend)

https://www.businesstimes.com.sg/compani...45-million

expected after the peak of new car sales in 2017

There are actually more cars that are "supposed" to be inspected in 2020 than 2017. The prior decade of boom-bust in vehicular inspections has actually been tapered down to an extent due to the record increase in vehicles going beyond the 10 year age, from 2017 onwards.

The current fall in profit isn't surprising because of the delay in vehicular inspection due to Circuit Breaker, and more importantly SETSCO (non vehicular inspection) as the construction sector was closed down for a big part of the year as well.

[r0n]

Vicom posts 14% fall in FY2020 net profit to S$24.5 million

FY20 final dividend 6.22cents (FY19 6.07 cents final dividend + 3.5275 cents interim dividend)

https://www.businesstimes.com.sg/compani...45-million

expected after the peak of new car sales in 2017

There are actually more cars that are "supposed" to be inspected in 2020 than 2017. The prior decade of boom-bust in vehicular inspections has actually been tapered down to an extent due to the record increase in vehicles going beyond the 10 year age, from 2017 onwards.

The current fall in profit isn't surprising because of the delay in vehicular inspection due to Circuit Breaker, and more importantly SETSCO (non vehicular inspection) as the construction sector was closed down for a big part of the year as well.

Agreed - not just the construction sector, but general business activity has been much lower which drivers lower profits in the non-vehicle inspection business.

[brattzz]

FY20 : it's only 1x final dividends, 6.22 cents, there is no interim dividend payout.

company should pay back the 7.7m gov relief!! :O 

[brattzz]

1Q 2021 versus 4Q 2020


Financial Performance
• The 1Q 2021 results were still impacted by the effects of COVID-19. Group PATMI at
$6.2m fell $1.2m or 16.0% against 1Q 2020
QTRLY EBITDA S$9.4 MILLION VERSUS S$10.7 MILLION.QTRLY REVENUE S$24.1 MILLION VERSUS S$25.3 MILLION.NON-VEHICLE TESTING BUSINESS IS EXPECTED TO CONTINUE TO FACE CHALLENGES AHEAD.
• Government Reliefs of $0.6m
Revenue↓$0.3m or 1.4% Lower revenue from vehicle testing as backlog inspection of private cars deferred during Circuit
Breaker were completed by 4Q 2020, offset by higher revenue from non-vehicle testing as situation has improved and workload has gradually increased

• Healthy cash balance of $94.8m to weather prevailing uncertainties (SO MUCH CASH!! CDELGRO GOT TO MILK IT!)
• Net cash generated of $1.6m during 1Q 2021

[weijian]

The AGM minutes have some interesting information about EV inspection and also the oligopoly status quo that we should maintain. On the question of VICOM's plan to expand overseas, their answer is simply music to VICOM shareholders.

FY22 looks like peak vehicular inspection and hence we continue to see 1Q22 churning around nicely. With Spore opening up, SETSCO will move along.

Minutes of AGM: https://links.sgx.com/FileOpen/VICOM%20A...eID=716675

1Q2022: https://links.sgx.com/FileOpen/1Q2022%20...eID=716689

[brattzz]

Income Statement – 1st Quarter 2022
1Q 2022 versus 1Q 2021
• Revenue ↑ $1.9m – Mainly from the higher business volume in the non-vehicle testing business as it rides on
the recovery phase of the Singapore economy.
• Operating Costs ↑ $1.5m – Higher operating costs of $1.0m in tandem with higher business volume and lower
COVID-19 Government reliefs of $0.5m.
• Operating Profit ↑ $0.4m – This is due to the higher revenue which more than offset the higher operating costs.
• PATMI ↑ $0.2m – Contributed by higher operating profit but offset by higher tax expense.

Good lah!

[brattzz]

so car reaches 3 years old, drive to vicom inspection centre - JIC for a quick 20 mins check, KACHENG! $70.62!!
short Q, so it was fine waiting,

https://links.sgx.com/FileOpen/VICOM%20M...eID=727961

happy to see that,

VICOM’S RESULTS
FOR THE HALF YEAR ENDED 30 JUNE 2022
 Revenue for the first six months increased by 8.5% to $53.3 million.
 Group operating profit increased by 10.6% to $16.5 million.
 Net profit attributable to Shareholders increased by 9.2% to $13.1 million.

Revenue +8.5%
Operating Profit +10.6%
Net Profit Attributable to Shareholders +9.2%
EBITDA +9.4%
EPS - cents +9.5 cts

Dividend
A tax-exempt one-tier interim dividend of 3.32 cents per share has been declared
representing a payout ratio of 90%

[weijian]

After 5 years, a 5% increase in vehicular inspection fees - from 60sgd (64.20sgd after gst) to 63sgd (67.41sgd after gst).

Eight lessons from 11 years of owning VICOM

The next revision would only come a decade later in November 2017 when inspection fees were raised by around 10.7% to S$64.20.

Unsurprisingly, the latest revision was made earlier this month in line with higher inflation. Car inspection fees have increased by another 5% to S$67.41.

https://sg.finance.yahoo.com/news/eight-...00398.html

[weijian]

The AGM minutes have some interesting information about EV inspection and also the oligopoly status quo that we should maintain. On the question of VICOM's plan to expand overseas, their answer is simply music to VICOM shareholders.

FY22 looks like peak vehicular inspection and hence we continue to see 1Q22 churning around nicely. With Spore opening up, SETSCO will move along.

Minutes of AGM: https://links.sgx.com/FileOpen/VICOM%20A...eID=716675

1Q2022: https://links.sgx.com/FileOpen/1Q2022%20...eID=716689

In AGM2022, there a definitive "NO" answer to any overseas expansion, and any overseas expansion would be carried out by the parent.

I wonder if this will change soon? Currently, VICOM only has a SETSCO (non vehicular inspection) in Malaysia and a search on VICOM's annual report will yield "Engaged to provide consultancy services to set up vehicle inspection centres in Malaysia in 1993". From paultan.org's article, Puspakom was appointed by the Msian Gov in 1994 and connecting the dots, VICOM probably advised Puspakom 30years ago?

Puspakom’s monopoly on vehicle inspection services to end in 2024, gov’t opening up the field
https://paultan.org/2023/03/24/puspakom-...2024-loke/