Portek International

[dydx]

The fact that a small company has been able to win contracts from various governments and quasi-government operators to manage their ports - and so far quite profitably! - makes Portek a very special company.

[pianist]

ecuador doesn't sound like a safe place to me
nevertheless me too is impressed by their business connectivity & resourcefulness

[dydx]

An old one-page article (first published in Nov10) from the ST on Portek, entitled "Efficiencies And Opportunities: Buzzwords At Portek".....
http://portek.listedcompany.com/newsroom...301110.pdf

I have benefited from it.

[pianist]

thanks for sharing ..it is amazing that its roe figures rose from a low 2007 to high 2010 @ 1.83% 7.20% 14.95% 19.55%.
it also reminds me of the volalitity of the business environment.

[Nick]

I am guessing that the change in their margins and ROE is due to the switch from an order-book based port engineering (crane manufacturing etc) to port operation and management business. I think the latter has higher returns and margins (and of course risk). This has led to a recovery in its earnings from 2007 onwards.

Honestly, I think it is not a matter of if but rather a question of when will Portek realize its value in the port operating business through a sale/listing.

Is there any analyst covering Portek ?

Their income tax rates looks extremely high ! $8 mil tax for $22 million worth of PBT !

(Not Vested but Interested)

[Nick]

Portek has risen rapidly this week. CWT has been rising slowly as well...perhaps some news on the Russian JV port ?

[dydx]

I guess the impending listing of Hutchison Port Holdings Trust has stirred up market interest towards established port operators like Portek.

Just based on the yardstick of a reasonable PER or FCF multiple, IMHO, Portek - at today's closing price of $0.54 - remains grossly.

[yaosheng]

wonder if anyone has seen this ( http://www.ifc.org/ifcext/spiwebsite1.ns...FC0069333B )

IFC is proposing to finance an investment by Portek into a Rwanda storage and distribution company, partially state-owned

[portuser]

wonder if anyone has seen this ( http://www.ifc.org/ifcext/spiwebsite1.ns...FC0069333B )

IFC is proposing to finance an investment by Portek into a Rwanda storage and distribution company, partially state-owned

Portek's profile should rise when this materialises as IFC is part of World Bank.

---

I am guessing that the change in their margins and ROE is due to the switch from an order-book based port engineering (crane manufacturing etc) to port operation and management business. I think the latter has higher returns and margins (and of course risk). This has led to a recovery in its earnings from 2007 onwards.

Honestly, I think it is not a matter of if but rather a question of when will Portek realize its value in the port operating business through a sale/listing.

Is there any analyst covering Portek ?

Their income tax rates looks extremely high ! $8 mil tax for $22 million worth of PBT !

(Not Vested but Interested)

Portek does not manufacture cargo handling equipment. Portek carries out equipment repair, enhances the handling capacity of existing equipment, and sources used equipment for ports. You can read up interesting articles written by Larry Lam in Portek website.
Portek should do well in its terminal operations. The running cost of terminal is largely fixed, and a very large part of the revenue from the additional cargo goes to the bottomline.

[Nick]

Portek reported 21.3% growth in shareholder's profit to $7.25 million for 1H 2011. It does look like Portek should be able to continue growing its dividend this year barring any major upheaval in their port home country and world trade.

http://info.sgx.com/webcoranncatth.nsf/V...40016C7B6/$file/Portek-Masnet-FY1H2011.pdf?openelement

I also came across an article about Portek from portstrategy posted today -

http://www.portstrategy.com/features101/...s-retrofit