Serial System Ltd

[promptpost]

Trading Halt Pending Release of Announcements

http://infopub.sgx.com/Apps?A=COW_CorpAn...4KJnChpffc

[promptpost]

Serial System selling its entire 13.6% stake in listed company Jubilee Industries to another listed company WE Holdings,

http://infopub.sgx.com/Apps?A=COW_CorpAn...ubilee.pdf

RATIONALE FOR THE DISPOSAL
The Board considers the Sale Shares as non-core assets, and is of the view that the Disposal
enables the Company to realise returns on its investment in Jubilee, and also avail itself of
cash which can be deployed into its core businesses and/or utilised for other business
opportunities.

The Group intends to use the proceeds from the Disposal for general working capital
purposes or other business opportunities as and when they arise and/or reduction of
borrowings.

[greengiraffe]

http://www.businesstimes.com.sg/premium/...6-20140812

PUBLISHED AUGUST 12, 2014
Serial System Q2 profit jumps 36%

BYNISHA RAMCHANDANI
nishar@sph.com.sg @Nisha_BT

LIFTED by higher sales, electronics components distributor Serial System's net profit for the second quarter ended June 30, 2014, surged 36 per cent year on year to US$5.01 million.
Revenue climbed 28 per cent to US$262.92 million, boosted partly by higher turnover from North Asia while earnings per share increased to 0.55 US cent from 0.41 US cent previously. Gross profit margin fell to 8.6 per cent during the quarter under review, down from 9.2 per cent in Q213 as the group's Greater China and Singapore subsidiaries saw higher sales volumes of lower margin products. However, gross profit increased 19 per cent to US$22.58 million.
For H1 2014, net profit was 35 per cent higher at US$7.12 million while revenue grew 26 per cent to US$475.28 million. The group said it is on track to hit its revenue target of US$1 billion by end financial year, which would translate to topline growth of around 22 per cent. It stressed that it remains focused on its three-pronged strategy to "increase revenue, deepen its value proposition and improve internal efficiencies and margins".
The group recently acquired 20 per cent interests in Australia industrial laundry firms E-Laundry & Dry Cleaning Services and SPL Investments. It is working with the firms' management to find ways to grow the businesses in Australia. Therefore, Serial expects increased contributions from these associated companies in the near future.

[greengiraffe]

http://www.businesstimes.com.sg/companie...nd-of-year

Serial System eyes US$1b sales by end of year
By
Jamie Lee leejamie@sph.com.sg@JamieLeeBT
5 Nov5:50 AM
Singapore

SERIAL System expects to hit its US$1 billion revenue target by the end of this financial year. This comes as the electronic-parts seller on Tuesday reported a 50 per cent boost in net profit for the third quarter compared to a year ago, on higher sales.

Net profit for

[newborn1000]

Precision Software, a division of QAD Inc. (NASDAQ:QADA) (NASDAQ:QADB), and a leading provider of industry-leading transportation and global trade management software solutions, today announced that Serial System Ltd., a Singapore-based distributor of electronic and electrical components, selected its Precision Trade Compliance and Global Trade Management solution.

The deployment of Precision Trade Compliance and Global Trade Management software provides increased visibility into trade compliance screenings and helps standardize critical business processes. It enables Serial System the ability to automate compliance checks and audit compliance processes to ensure due diligence with in-country regulatory programs and cross-border customs requirements.

“We are pleased to deploy Precision’s Trade Compliance and Global Trade Management solution to help us better support our supplier network requirements,” stated Serial System Ltd. Vice President Sidney Thong, Corporate IT & Central Functions. “Regulatory compliance is a critical consideration for a global distributor of electronic components and Precision’s solution helps ensure we are compliant in all markets we serve.”

“Global distributors of electronic and electrical components must comply with regulations from the various jurisdictions in which they operate or risk suspended operations,” said Precision Software President Steve Gardner. “The Precision solution automates screening processes and provides the audit trail necessary for any required audits which addresses a major concern for companies operating in multiple markets.”

The implementation of the Precision Trade Compliance and Global Trade Management solution has helped the company meet trade compliance requirements for Serial System’s Line Card suppliers and local customs authorities. All orders are screened through the Precision software when shipped from warehouses across Asia. This was a critical factor as Serial System Ltd. required a scalable solution able to maintain regulatory compliance with markets throughout Asia, Europe and the United States.

[vesfreq]

Hi,

Anyone vested in this counter? Gross margins seems very low of about 8 to 9%. With the weak global economy, how will Serial Systems continue to growth at record rates? The recent share price run up was exceptional.

The key risk seems to lie in whether SS sales volume growth in this year. Should the global demand weaken, their net margins will easily diminish. The company is heavily exposed to china market, which is worrying. China not likely to go through exponential growth rates in the past.

Another worry is the presence of other competitors from Taiwan and mainland China. Believe there may be formiable foes from Taiwan and China too. Haven't read more on this area yet.

Any views from fellow VB?

Moi not vested.

[hannyhanny]

Hi,

Anyone vested in this counter? Gross margins seems very low of about 8 to 9%. With the weak global economy, how will Serial Systems continue to growth at record rates? The recent share price run up was exceptional.

The key risk seems to lie in whether SS sales volume growth in this year. Should the global demand weaken, their net margins will easily diminish. The company is heavily exposed to china market, which is worrying. China not likely to go through exponential growth rates in the past.

Another worry is the presence of other competitors from Taiwan and mainland China. Believe there may be formiable foes from Taiwan and China too. Haven't read more on this area yet.

Any views from fellow VB?

Moi not vested.

Hi, I agree that the razor thin margin is a major overhang for this stock but the management has managed to consistently grow the revenue and make acquisitions with synergies. I think the company had in Para 10 of the full-year results given a fair situation and expectation on the next 12 months. Barring any unforeseen circumstances, the Board of Directors expects the financial performance for FY2015 to be better than that of FY2014. The company has a reasonable PE of less than 10 and pays regular dividends (abt 6% now). My personal view is that there is more upside than downside. Vested.

[newborn1000]

Balance sheet is rather weak especially if it continues to acquire more companies........

[opmi]

From The Edge article, Serial boss Goh said he was right to reject Alibaba in early 2000s. Said Alibaba will drag Serial down..
Another 'could have been', other than Transpac.

[vesfreq]

Balance sheet is rather weak especially if it continues to acquire more companies........

Economies of scale arising from these acquisitions should arise overtime but the synergistic gains may not materialise soon enough and balance sheet will continue to face pressure.

The low margins is also of concern too.

Not vested at this time. Watching.