SUTL enterprise (previously known as Achieva)

[vesfreq]

Anyone vested in Achieva? The recent RTO was quite interesting. Strangely, prices kept pressing upwards.

Personally, I can't see any economic value add with One Degree 15 having this "marriage" with Achieva. Being a high end club, the most it can do is more membership numbers. Given singapore being a small market, how many more member numbers can be garnered?

Anyone views or comments?

Not vested and not likely to be. Just seeking some views and opinions.

[asphodeli]

Bought just before share consol in 2015.

Reasonable bet on asset-light company with somewhat of a moat in private yachts & marine club management. Good to see that they're going global, and they give dividends only after 2 years of takeover, which is a good sign.

[bardsmanship]

This thread should be renamed "SUTL Enterprise" and moved to the appropriate sub-forum.

A rather interesting business in marina development and management.
In hindsight, the risk-reward ratio was quite favourable back in early-mid 2016, as the company was divesting its loss-making IT business.

I find management's vision of building out marina infrastructure in Asia to attract HNWI to explore the region in their yachts quite enticing, since Southeast Asia does have a lot of islands and coastal areas. But the company still only owns 1 marina so far, they are only providing consultancy and management services for the others (the Brooklyn marina and the upcoming ones in Indonesia and China). It'll be interesting to see how long they'll get to manage the new marinas - the contract for the Brooklyn marina is only for 5 years and will run out in 2021 if not renewed. It probably depends on how successful they are in maintaining / enhancing the cachet of the ONE°15 Marina brand.

Meanwhile the balance sheet is very healthy with 0 debt and ~S$34 million net cash (cash & equivalents - all liabilities), though I'll note that they have already committed to invest S$40 million in a JV to develop a marina in Iskandar.

Of course, yachting being a luxury business means that in a downturn there will probably be a chance to get in at a better price.

[kelvesy]

I attended the AGM and I see high potential in this business especially growing out the marina infrastructure in Asia, especially in Indonesia. Asia is heading towards this direction of lifestyle now.

Cash flow + recurring business, however, scalability is not that fast. To accelerate, perhaps, buy old Marina and turnaround to extract more value.

Arthur Tay is friends with Mark Richards of Grand Banks Yachts. I believe Arthur Tay is very well-connected.

http://www.asia-pacificboating.com/news/...k-richards

https://yachtharbour.com/news/genting-gr...hting-1725

[weijian]

This thread should be renamed "SUTL Enterprise" and moved to the appropriate sub-forum.

hi bardsmanship,
Thanks for the highlight. Changes have been made accordingly

[fallscushion]

At the price of S$0.55, basically the net cash is over 90% of the Market Cap.

This is interesting, the pipeline for the future of linked Jewels is going as visioned by Arthur tay.
I guess the question is on the execution and how long it takes for the jewels to shine.

I'd think they have 3 jewels as per now:
1 up and running in Sentosa Cove, upcoming 1 in Iskandar & another still KIV in Phuket.

With such cash buffer, if the ROI for the new marinas are reasonable, this is a reasonable bet for me.

[fallscushion]

SUTL is a niche company albeit with insignificant bottom line.
I reckon it's a play with an expected long times of cultivation before the harvest.
The question is always HOW LONG?
and whether the harvest season may even come to fruition?

Having said that, with current price of S$0.49, it's selling below Net Cash per share of S$0.525.
Basically Mr Market is pricing the company business with negative value.

What is the catalyst? basically there is none.
This business is tough to expand and takes a very long times to build up another successful One degree 15.
It's slowly building up though.
Building up phase will weigh down the bottom lines, hence there will be dark period ahead before the harvest.

[Amiee]

Was looking around the market with a value mentality and came across this company called SUTL.



This company has 48m cash and most of its liabilities are on deferred revenue, which for a membership business costs practically nothing. Yet they only have a market cap of 47m, while they have an operating business printing 5.5m revenue and 782k per year with basically a captive audience thanks to their members.

Early on they sold a bunch of products at $60k and everyone was happy.



and now those are going for $3k on Carousell.



Wouldn't be surprised if they're being ripped to Sh** by their rich clientele but hey its hard to short on the SG market.

Any thoughts?

[fallscushion]

Again a so so result from SUTL, slowly muddling through the rough sea:
https://links.sgx.com/FileOpen/H2%20FY20...eID=649183

Another company selling below net cash.
Little wonder there are so many delisting in Singapore Exchange.
Tons of companies swimming in net cash and yet Mr Market continues to ignore them, throwing opportunities to Management to offer low balls.

[fallscushion]

So so 2021-H1 result but surprised 10cent dividend!
About 20% over the last closed price of 50cent.
Seems like they think this pandemic is over.
https://www.sgx.com/mobileapp?action=vie...1OBJNOGB67