Techcomp

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14 years 2 weeks ago #3885 by Joes
Replied by Joes on topic Re:Techcomp
Its business is defensive, selling to government institutions. Sometimes, opportunieis arise to buy at good prices, here it is now at 31 cents - What do u think? :cheer:

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14 years 1 week ago #3911 by Joes
Replied by Joes on topic Re:Techcomp
Can someone comment on the impact on Techcomp of an economic slowdown in Europe? The company has several small acquisitions there. On the one hand, they will enjoy lower costs as they shift their manufacturing to Techcomp\'s plants in China. Techcomp can also market their products in Asia. On the other hand, the euro has weakened - and i am sure their contribution to Techcomp has weakened because of the forex. A number of other aspects to consider too.....Bottomline: Positive or negative?

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14 years 1 week ago #3912 by PKC
Replied by PKC on topic Re:Techcomp
If you see Techcomp\'s latest presentation slides. Currently,Europe only contributes about 5% of the total revenue. About 80% comes from China. Even with recent acquisitions, I guess the revenue derived from Europe is still

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14 years 1 week ago #3913 by Joes
Replied by Joes on topic Re:Techcomp
Thank you PKC (what does it stand for? At first I thought it is PCK, phua chu kang hahaha....). You are right abt the small contribution to Techcomp\'s revenue, so I would nt be worried about its growth story this year. China market is big enough + Asia. Europe is a bonus. However, now Techcomp is doing about 7X last year\'s earnings. Not exactly dirt cheap, unless u compare with its HK - listed peers who are doing 15-20X. Based on expected 25% growth this year, Techcomp is now running at about 5-6X PE which is v attractive if the earnings materialise. Agree?????

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14 years 1 week ago #3914 by MacGyver
Replied by MacGyver on topic Re:Techcomp
Hi Happin, 7x is cheap. In fact, equity should command 10x and above if they can bring you higher capital gains. In US, if you trade at 1x PEG, you are cheap. In the case of Techcomp, they can grow 25% in 2010, 7x PE means a PEG of 0.28x. Unfortunately, it is this mentality that prevents Singapore from becoming a successful capital market. Techcomp\'s sales should balloon in 2010 given that they made 2 acquisitions last year. I am expecting organic growth of 10-15% for the distribution side given that it is a stable business and expects the manufacturing side to double its sales. In all, profit should be around US$10-US$12m. PE is only 5x FY2010 if we expect US$10m. If Techcomp dual list in HK, they can trade up to at least FY2010 10x PE . Check out their HK counterpart, Sunny Optical and you will know what I mean. I am currently holidaying in Paris, catching the Roland Garros Open. The economy here is not too bad. People are still spending and the shops are still busy. Looks like the media overblown this European crisis. :) :)

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14 years 1 week ago #3941 by Mel
Replied by Mel on topic Re:Techcomp
Techcomp up 1.5 cents now at 34 cents. Recovering, right? Wonder when they will do dual listing in HK.

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