GSS Energy

[sillyivan]

Did not manage to find a thread on this small cap SGX counter so decided to start one for discussion.

This company’s core business is its precision engineering segment which counts many global MNCs as its customers. It is currently the sole revenue driver and has been constantly producing stable income for the company.

In recent years the company went into the O&G segment in which they explore and dig up old gas wells together with a local partner. The company has met many setbacks in the past couple years with regard to this new business and as a result share price plummeted. However, it seems they are finally poised to monetise the oil wells this year.

Also, recently the PE business struck a joint partnership with GPCC Korea to manufacture and assembly  electric scooters and tuktuks. The partnership will see them introduce a range of high performance electric vehicles under the ISO brand which is owned by Ferruccio Lamborghini (grandson of the founder of the Lamborghini group) through a master license agreement.

Currently it is at a market cap of ~$50M, and market has not included any value to its O&G segment. Would be great If anyone has any insights/pointers to share about this company!

[DCF]

Did not manage to find a thread on this small cap SGX counter so decided to start one for discussion.

This company’s core business is its precision engineering segment which counts many global MNCs as its customers. It is currently the sole revenue driver and has been constantly producing stable income for the company.

In recent years the company went into the O&G segment in which they explore and dig up old gas wells together with a local partner. The company has met many setbacks in the past couple years with regard to this new business and as a result share price plummeted. However, it seems they are finally poised to monetise the oil wells this year.

Also, recently the PE business struck a joint partnership with GPCC Korea to manufacture and assembly  electric scooters and tuktuks. The partnership will see them introduce a range of high performance electric vehicles under the ISO brand which is owned by Ferruccio Lamborghini (grandson of the founder of the Lamborghini group) through a master license agreement.

Currently it is at a market cap of ~$50M, and market has not included any value to its O&G segment. Would be great If anyone has any insights/pointers to share about this company!

Prices is low and may be worth to buy. Potential additional upside include:
1. If Oil and Gas bring in revenue. They will get cost recovery of all previous investment, and 20% profit sharing after that
2. The expanded to a much bigger factory in Indonesia and own it. This may be an indication that they are pursing bigger business there. will be good if they come.

At the same time, people have concerns on how the Chairman buy into the controlling shareholder position, and if he has the ability to run the PE business with no previous experience. The previous management team is still there, but the chief is the CFO. Not sure if they can ran the company well.

[sillyivan]

Did not manage to find a thread on this small cap SGX counter so decided to start one for discussion.

This company’s core business is its precision engineering segment which counts many global MNCs as its customers. It is currently the sole revenue driver and has been constantly producing stable income for the company.

In recent years the company went into the O&G segment in which they explore and dig up old gas wells together with a local partner. The company has met many setbacks in the past couple years with regard to this new business and as a result share price plummeted. However, it seems they are finally poised to monetise the oil wells this year.

Also, recently the PE business struck a joint partnership with GPCC Korea to manufacture and assembly  electric scooters and tuktuks. The partnership will see them introduce a range of high performance electric vehicles under the ISO brand which is owned by Ferruccio Lamborghini (grandson of the founder of the Lamborghini group) through a master license agreement.

Currently it is at a market cap of ~$50M, and market has not included any value to its O&G segment. Would be great If anyone has any insights/pointers to share about this company!

Prices is low and may be worth to buy. Potential additional upside include:
1. If Oil and Gas bring in revenue. They will get cost recovery of all previous investment, and 20% profit sharing after that
2. The expanded to a much bigger factory in Indonesia and own it. This may be an indication that they are pursing bigger business there. will be good if they come.

At the same time, people have concerns on how the Chairman buy into the controlling shareholder position, and if he has the ability to run the PE business with no previous experience. The previous management team is still there, but the chief is the CFO. Not sure if they can ran the company well.

Can you elaborate more on your point of the management team? You were trying to say the Non-executive Chairman Kuek Eng Chye, Anthony bought into controlling shareholdings or was it the Group CEO Yeung Kin Bond Sydney? Prior to that the chief is CFO Ng Say Tiong? All 3 were nominated to BOD in Oct/Nov 2014.

[sillyivan]

Independent director Sanford Chee exercised options on 700,000 shares at $0.098 for a total consideration of $70,000. Good earnings results for FY2019 to be expected?

1. GSS does not have any more expenses relating to the O&G segment that has been an overhang for the past 3-5 years weighing down on net profits from its Precision Engineering business.

2. It's precision engineering business started PCBA production in 2019. With the current semicon industry upcycle which sell side analysts are so in love with, there might be an indirect consequence of increased demand in GSS' PE business + PCBA production.

With increased production(revenue), decreased expenses(costs), there could be a nice boost in both top line and bottom line growth that could propel its stock price as near term catalysts.