STARBURST - "Potential Gem."

Rock
Topic Author
Offline
Junior Member

9 years 6 months ago #21005 by Rock

STARBURST - "Potential Gem." was created by Rock

STARBURST IS A SINGAPORE-BASE ISO9001; 2008 CERTIFIED ENGINEERING GROUP SPECIALISING IN THE DESIGN OF ENGINEERING:

1. Training Facilities Design
Starburst works closely with range consultants in connection with the anti-ricochet ballistic protection systems for the firearms-training facilities.

2. Anti-Ricochet Lining Products
The strength of our services is founded on our proprietary line of anti-ricochet ballistic protection materials.

3. Ballistics Fit-Outs
Firearms remain indispensable for all modern militaries and law enforcement organisations.

4. Modular Training Range
Starburst also builds modular training ranges in addition to our regular ranges

5. Range Maintenance
To ensure that users continue to train within a safe environment.

6. Tactical Training Mock-Ups
Live-firearm and non-live-firearm tactical training mock-ups simulating specific training scenarios.

7. Security and Detention Facilities
Starburst designs, fabricates and installs ballistic protection and security systems for, amongst others, high security detention facilities.

8. Structural and Architectural Steel Works
In addition to firearms-shooting ranges and tactical training mock-ups, Starburst designs, fabricates and installs architectural steel structures.

Starburst is one of the few firms in South-east Asia that designs and install systems for firing ranges. Starburst listed in SGX's Catalist board at 31 cts. Below are the data from the IPO figure.

IPO on 10/7/14 @ 31 cts. Total shares =250m

FY 2013 - December Result
Rev = 21m, increased by 21%
Prof = 8.7m, increase by 34%
EPS = 4.36 cts. EPS after IPO = 3.49 cts
Prof margin = 45%
Net profit margin = 41%
Contract secured as @ 9/6/14 = $45.8m
Dividend policy - at least 20% of net profit

Starburst installs anti-ricochet ballistic protection systems on wall of firing ranges to ensure that bullets do not bounce back and hits anyone. Being in defence industries is probably recession-proof. Starburst has good potential to growth it's business in the Middle East market. In the words of MD Jonathan Yap "You need many years of experience and a safety track record to prove that your products work, so the barriers to entry are high." Starburst is proxy to bigger defence budgets regionally and fastest growing markets in the Middle East.

I believe Starbust is a "Potential Gem". According to DBS Vickers Analyst report, EPS for FY2014 = 6.3 cents. At 60 cents it is trading below 10x PE. Starbust dividend policy of at least 20%, that is 1.5 cent, yield = 2.5%. I'm wait for a good entry level to buy, below 50 cts but the share price had increase to its high at 76 cents. Starburst has build strong support at 59 cents. I have bought few days ago at 59.5 cents on price weakness. I'm waiting for more buying opportunity.

Please Log in or Create an account to join the conversation.

Bubbachuck
Offline
New Member

9 years 6 months ago - 9 years 6 months ago #21009 by Bubbachuck

Replied by Bubbachuck on topic STARBURST - "Potential Gem."

I think it's one contract win in middle east away from unlocking its value.

Vested and looking to accumulate more.

Last edit: 9 years 6 months ago by Bubbachuck. Reason: added text

Please Log in or Create an account to join the conversation.

Rich
Offline
Elite Member

9 years 6 months ago #21013 by Rich

Replied by Rich on topic STARBURST - "Potential Gem."

Re:
EPS for FY2014 = 6.3 cents. At 60 cents it is trading below 10x PE.

Seems like very fair valuation at this level, if not a tad too rich for value investors.

Why not take China Sunsine, at 4X PE 2014FY?

Please Log in or Create an account to join the conversation.

Bubbachuck
Offline
New Member

9 years 6 months ago #21015 by Bubbachuck

Replied by Bubbachuck on topic STARBURST - "Potential Gem."

Rich wrote: Re:
EPS for FY2014 = 6.3 cents. At 60 cents it is trading below 10x PE.

Seems like very fair valuation at this level, if not a tad too rich for value investors.

Why not take China Sunsine, at 4X PE 2014FY?

Eh? China Sunsine and Starburst, what's the relation? Looks completely different sectors to me.

Please Log in or Create an account to join the conversation.

Rock
Topic Author
Offline
Junior Member

9 years 6 months ago #21029 by Rock

Replied by Rock on topic STARBURST - "Potential Gem."

Hi Rich,
I have check throught China Sunshine, listed since 2007 the performance don't look promising. FY 2010 profit was RMB115m and FY2012 profit was RMB 32m and FY2013 profit more than double to RMB 76m. FY2013 no dividend payment as compared to FY2012.
China Sunshine at 4x PE 2014 it don't mean much because of the company poor profit performance over the years. In fact @ 41 cents it's already trading @ 10x PE. China Sunshine profit margin of just above 5% can easily eat away by currency lost.

As for Starburst bussiness the barriers to entry are high, high profit margin, proxy to bigger defence budgets regionally and fastest growing markets in the Middle East.

Starburst has good potential to growth it's business as defence spending in many countries are increasing. If Starburst able to growth its top and bottom lines, share price at 10x PE is consider cheap. Starburst has clear dividend policy - at least 20% of net profit.

Please Log in or Create an account to join the conversation.

Rock
Topic Author
Offline
Junior Member

9 years 4 months ago #21456 by Rock

Replied by Rock on topic STARBURST - "Potential Gem."

Report on Mindef to outsource more tasks to boost NS effeciency will be a big boost to Starburst business. Other than the firing-range operation Starburst can explore other areas of defence expertise which will ensure a steady recurring top and bottom lines.

Starburst already have years of experience and a safety track record to prove that its products work. High barriers to entry means Starburst will have much to gain from Mindef outsourceing more task.

I already had a bridge-start on Starburst recently buying up below 60 cents.

Please Log in or Create an account to join the conversation.

Time to create page: 0.233 seconds