Oxley Holdings: Net profit attributable to shareholders surged to $275.9 million for the six months ended 31 December 2013 compared to $18.0 million in the previous corresponding period. This was on a 709% surge in revenue to $888.2 million.
It has financed most of its deals via debt, and the debt financing model is good only when interest rates remain low.
If one looks at its gearing, one can certainly get a shock, but its margin from revenue is way above its interest costs.
When interest rates move up, the only way Oxley can survive is to unwind its portfolio and reduce gearing.
Valuetronics: Reported 5.1% rise in 9MFY14 revenue to HK$1.8 billion. Net profit from continued operations rose 17.1% to HK$108.4 million.
This company is expected to deliver 6 cents SGD earnings per share for the coming year and has a NAV of about 30 Singapore cents.
Not much publicity given to this counter. Free cash flow looks good.
But it is Hongkong based and listed in Singapore.
(See forum postings on Valuetronics here. )
Nam Cheong: Revenue surged 71% to RM851 million for 9M2013 while net profit rose 55% to RM135 m.
Need to understand from management: (1) Why Nam Cheong prefers to list in Singapore instead of Bursa Malaysia?;
(2) How does Nam Cheong hedge its ringgit exposure since its minority shareholders are in Singapore, and dividend is paid in Singapore currency;
(3) besides scalability, what is Nam Cheong's competitive edge and its critical success factors?