shopper360

[dydx]

A dividend policy..
https://links.sgx.com/FileOpen/Shopper36...eID=680904

Putting in words how to reward shareholders is a positive thing.

[dydx]

I thought this new investment is most interesting, and can become highly synergistic to Shopper360's existing business operations and growth..
https://links.sgx.com/FileOpen/Press%20R...eID=681730

[dydx]

For those who do not know enough about the myriads of services provided by Shopper360 to FMCG brand-owners/distributors, retail chains (hypermarkets/supermarkets, convenient stores, petrol kiosks, etc.), and consumers, the FY21 AR makes good reading..
https://links.sgx.com/FileOpen/Annual%20...eID=683338

This is really a people business. While the most important 'assets' - customer relationships (e.g. with Nestle Group, FairPrice, etc.), management talent including their expertise/experience, all the softwares that support the business and customer services, and the large, motivated workforce - are not reflected on the balance sheet, such assets are nonetheless highly valuable.

[BlueKelah]

Hi Dydx, 
thanks for highlighting this smallcap. 

Financials look pretty good with net cash position.

it is making a profit as well. if you take latest FY2021 results the profit is SGD 1.71c which give  a yield on price of 13.8c today about 3.7% assuming they give 30% payout of EPS. Not that much but still repectable given its only be a couple years since IPO.

not sure when they will eventually start paying out dividend, maybe starting next year? but looks like a pretty good business. 

I will be buying if they ever work with shengshiong

[dydx]

On last count, ShengShong has 63 single-format supermarkets...
https://corporate.shengsiong.com.sg/store-locator/

and FairPrice has over 370 stores of 7 different formats: FairPrice Supermarket, FairPrice Shop, FairPrice Finest, FairPrice Xtra, Unity Pharmacy, FairPrice Xpress and Cheers convenience stores.

[BlueKelah]

On last count, ShengShong has 63 single-format supermarkets...
https://corporate.shengsiong.com.sg/store-locator/

and FairPrice has over 370 stores of 7 different formats: FairPrice Supermarket, FairPrice Shop, FairPrice Finest, FairPrice Xtra, Unity Pharmacy, FairPrice Xpress and Cheers convenience stores.

well if shopper360 can work with shengshiong or fairprice group that would be pretty good for them.
@dydx I assume you are vested in this stock already?

[dydx]

BlueKelah, It is good that you have also taken notice of shopper360 as a sustainable and attractive business too..

[BlueKelah]

BlueKelah, It is good that you have also taken notice of shopper360 as a sustainable and attractive business too..

lol you not answering my question but thats ok... 

shopper360 is sustainable as making profits now

Attractive not so sure, as the bar for replicating their business model is not very high. Big supermarket chains should be able to do similar stuff within their own marketing departments. 

according to the financials it seems top line has shrunk since last year. Could be due to pandemic, but the sector they are in supposed to hold up during pandemic, so this shows some weakness in their business.

[dydx]

Shopper360's market cap now stands at only $15.0m (108.8m o/s issued shares x last done at $0.138). Whatever valuation methods or bases one applies, it is not expensive. It may be worthwhile to also note that Shopper360 was priced at $0.29/share during its IPO in Jun2017..

[dydx]

This morning's releases..
https://links.sgx.com/FileOpen/Shopper36...eID=684787 [AGM presentation slides]
https://links.sgx.com/FileOpen/AGM%20for...eID=684786 [response to shareholders' questions]

It is a lot of additional useful information on the group's businesses.

Based on yesterday's last done at $0.138 and the outstanding issued shares at 108.8m, market cap now stands at $15.0m. We have a grossly underpriced situation here..