Starburst Holdings

[Bubbachuck]

After the CIMB report yesterday, the price shot up at around 15% in 2 days to close at 74c this week.

[CityFarmer]

It should be the next IPO that I have regretted not to participate, after Sheng Siong IPO.

At preliminary, the fundamental sound good. I might need to build-up the domain knowledge to determine the fair value. Is the current price of 78 cents over-priced? Hmm...

(not vested)

Shooting-range builder best Singapore stock on mideast unrest

Starburst Holdings, a Singaporean builder of shooting ranges, expects revenue to rise fivefold as Middle East defense spending surges following the Arab Spring uprisings.

The company is pursuing as many as six contracts to provide firearms-training facilities to countries including the United Arab Emirates, Executive Chairman Edward Lim said. Projects in the region may drive sales in five to six years to $100 million from $21 million in 2013, he said. Starburst is Singapore’s best-performing stock since listing shares on July 10, soaring 139% as of the last close. The benchmark Straits Times Index rose 1.5% in that span.

“After the Arab Spring, countries in the Middle East are starting the implementation of compulsory military services,” Lim said in an interview on Aug. 21. “They need to build new shooting ranges to accommodate the increase in the military personnel.”

No region has seen a faster increase in defense spending than the Middle East, with Saudi Arabia boosting its military and security budget 21% to US$81 billion ($101 billion) in 2014 from a year earlier, according to IHS Jane’s. Revolts from late 2010 to 2012 driven by the world’s highest youth unemployment rate ousted leaders including Egypt’s Hosni Mubarak, Libya’s Muammar Qaddafi and Tunisia’s Zine El Abidine Ben Ali.

The UAE is mandating military service for men aged 18-30, with participation optional for women, according to the state- run news agency. Starburst is also seeking a contract with Qatar, which is beefing up security as it prepares to host the 2022 World Cup soccer tournament.

“The Middle East is a huge market for us,” Managing Director Joseph Yap, who co-founded the company with Lim in 1999, said in the same interview.
...
http://www.theedgesingapore.com/the-dail...nrest.html

[greengiraffe]

Asdew Alan Wang power... all mfged for success

[greengiraffe]

By Jonathan Burgos
Aug. 25 (Bloomberg) -- Starburst Holdings Ltd., a
Singaporean builder of shooting ranges, expects revenue to rise
fivefold as Middle East defense spending surges following the
Arab Spring uprisings.
The company is pursuing as many as six contracts to provide
firearms-training facilities to countries including the United
Arab Emirates, Executive Chairman Edward Lim said. Projects in
the region may drive sales in five to six years to S$100 million
($80 million) from S$21 million in 2013, he said. Starburst is
Singapore’s best-performing stock since listing shares on July
10, soaring 139 percent as of the last close. The benchmark
Straits Times Index rose 1.5 percent in that span.
“After the Arab Spring, countries in the Middle East are
starting the implementation of compulsory military services,”
Lim said in an interview on Aug. 21. “They need to build new
shooting ranges to accommodate the increase in the military
personnel.”
No region has seen a faster increase in defense spending
than the Middle East, with Saudi Arabia boosting its military
and security budget 21 percent to $81 billion in 2014 from a
year earlier, according to IHS Jane’s. Revolts from late 2010 to
2012 driven by the world’s highest youth unemployment rate
toppled leaders including Egypt’s Hosni Mubarak, Libya’s Muammar
Qaddafi and Tunisia’s Zine El Abidine Ben Ali.

Expansion Plans

The UAE is mandating military service for men aged 18-30,
with participation optional for women, according to the state-
run news agency. Starburst is also seeking a contract with
Qatar, which is beefing up security as it prepares to host the
2022 World Cup soccer tournament. The stock climbed 4.7 percent
to 77.5 Singapore cents as of 11:37 a.m., heading for a 21
percent three-day advance.
“Starburst has a very interesting story,” Ryan Huang, a
strategist at IG Ltd. in Singapore, said by phone. “They’ve got
their spotlight in the Middle East and there’s a lot of optimism
there. They’re in a very niche market, with high barriers to
entry. They also have high profit margins.”
Contributions from the region will account for 50 percent
of revenue in the next few years from 31 percent last year, Lim
said. Starburst, which has built almost 20 shooting ranges in
Southeast Asia and the Middle East in the past 15 years, plans
to use the net S$13.5 million raised from its IPO to double the
size of its fabrication facility in Singapore.
Starburst’s net income is likely to almost double to S$16.1
million this year and climb to S$28.4 million in 2015, supported
by its strong orderbook, Kenneth Ng and Justin Chiam at CIMB
Group Holdings Bhd. wrote in a note dated Aug. 20.

Relative Value

The company may also extend gains as the shares are trading
at a discount to its global peers, the analysts said. The stock
was valued at 17 times historic earnings at the last close,
compared with a multiple of 36.50 at Cubic Corp., a U.S.
supplier of combat training systems, according to data compiled
by Bloomberg.
“Order wins in Qatar, UAE and Kuwait are possible, but the
big upside is potential work in Saudi Arabia,” according to
CIMB. The kingdom’s defense budget has tripled in 10 years as
conflicts flare in Iraq and Syria, with al-Qaeda offshoot the
Islamic State posing the latest threat. Saudi Arabia is also
guarding against religious extremists within its own borders.

[LocalOptimal]

Dropped more than 5% today... noticed it too late to do anything.

[Bubbachuck]

I view it more as an opportunity. I want to accumulate more but no more bullets. [emoji1]

[Damien]

Hi Buddies,

Does anyone knows if they will report their results half-yearly or quarterly? Noticed some catalist companies report half-yearly.

[CityFarmer]

Hi Buddies,

Does anyone knows if they will report their results half-yearly or quarterly? Noticed some catalist companies report half-yearly.

The requirement falls under the SGX Rule 705(2), for companies with market cap exceed S$75 mil. The company market cap is way above S$75 mil, so quarterly report is required to comply to the Rule, unless waiver received.

(not vested)

[Damien]

Hi Buddies,

Does anyone knows if they will report their results half-yearly or quarterly? Noticed some catalist companies report half-yearly.

The requirement falls under the SGX Rule 705(2), for companies with market cap exceed S$75 mil. The company market cap is way above S$75 mil, so quarterly report is required to comply to the Rule, unless waiver received.

(not vested)

Many thanks for the information!

[greengiraffe]

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