Tech Companies (3)

Notion VTEC, Omesti, Panpage, Pentamaster, Theta Edge

Author: Icon8888   |   Publish date: Fri, 6 Feb 2015, 12:56 PM 

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Notion Vtec

Notion Vtec Bhd (NVB) Snapshot

Open 0.44		Previous Close 0.45
Day High 0.44		Day Low 0.44
52 Week High 07/23/14 - 0.75		52 Week Low 12/16/14 - 0.34
Market Cap 118.0M		Average Volume 10 Days 71.0K
EPS TTM -0.10		Shares Outstanding 268.3M
EX-Date 12/23/13		P/E TM --
Dividend --		Dividend Yield --

Quarter Result:

F.Y.	Quarter	Revenue ('000)	Profit before Tax ('000)	Profit Attb. to SH ('000)	EPS (Cent)	DPS (Cent)	NAPS
2014-09-30	2014-09-30	55,320	-15,912	-9,522	3.55	-	1.1048
2014-09-30	2014-06-30	52,190	961	1,265	0.47	-	1.1349
2014-09-30	2014-03-31	44,201	-8,709	-7,379	-2.75	-	1.1280
2014-09-30	2013-12-31	47,706	-9,453	-10,023	-3.74	-	1.1520
2013-09-30	2013-09-30	60,178	2,998	296	0.11	1.00	-
2013-09-30	2013-06-30	62,156	45,323	40,133	14.96	-	1.1835
2013-09-30	2013-03-31	50,841	3,571	2,387	0.90	-	1.0640
2013-09-30	2012-12-31	49,140	-22,380	-22,728	-8.61	-	1.0763
2012-09-30	2012-09-30	88,860	21,311	18,722	6.94	2.00	-
2012-09-30	2012-06-30	95,829	24,022	19,836	7.35	1.00	1.1047
2012-09-30	2012-03-31	84,508	16,595	15,537	10.06	-	1.8031

Strong balance sheets





Comments
(1) This group is quite huge, with net assets of RM296 mil. 
(2) Used to do well. But in recent years, had been reporting losses most of the time. 
(3) Three business egments - HDD parts, camera parts and industrial / automotive parts.
(4) Not exciting until there are signs of turning around.


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Omesti

Previously known as Formis Resources

Omesti Bhd (OMST) Snapshot

Open 0.53		Previous Close 0.54
Day High 0.54		Day Low 0.53
52 Week High 03/25/14 - 0.88		52 Week Low 12/16/14 - 0.50
Market Cap 207.3M		Average Volume 10 Days 65.2K
EPS TTM 0.08		Shares Outstanding 387.5M
EX-Date 07/4/96		P/E TM 7.0x
Dividend --		Dividend Yield --

Quarter Result:

F.Y.	Quarter	Revenue ('000)	Profit before Tax ('000)	Profit Attb. to SH ('000)	EPS (Cent)	DPS (Cent)	NAPS
2015-03-31	2014-09-30	120,938	1,573	-1,548	-0.40	-	0.6708
2015-03-31	2014-06-30	94,037	1,610	1,086	0.28	-	0.6672
2014-03-31	2014-03-31	88,529	16,076	14,120	4.14	-	0.6574
2014-03-31	2013-12-31	105,425	13,005	11,670	3.59	-	0.6323
2014-03-31	2013-09-30	88,332	6,204	4,556	1.52	-	0.5951
2014-03-31	2013-06-30	69,312	883	545	0.22	-	0.6260
2013-03-31	2013-03-31	109,668	-34,127	-37,625	-20.24	-	-
2013-03-31	2012-12-31	79,527	2,414	67	0.04	-	0.9513
2013-03-31	2012-09-30	75,490	2,372	1,483	0.80	-	0.9472
2013-03-31	2012-06-30	73,948	-2,838	-4,080	-2.19	-	0.9380
2012-03-31	2012-03-31	84,283	-11,333	-19,165	-10.31	-	-

(1) December 2013 quarter's net profit of RM11.7 mil was mostly due to fair value gain for investment amounting to RM9.2 mil
(2) March 2014 quarter's net profit was mainly due to RM13.4 mil gain from partial disposal of associate company stake, and RM4.5 mil fair value gain for investment.



Relatively healthy balance sheets with limited gearing




Comments 
(1) Parent company of ISS Consulting (100%) and ACE listed Microlink (50%, worthed RM35 mil) and Diversified Gateway (60%, worthed RM77 mil). The company also owns 16.8% of Main Market listed Ho Hup (worth RM80 mil). 
(2) The group has huge asset base, with net assets of RM260 mil. Have strong balance sheet with low net gearing. However, as can be seen from segmental breakdown, the various divisions generated limited profit (approximately RM5 to 10 mil per annum).  
(3) With market cap of RM207 mil, the stock is overvalued. Not exciting until there are signs of turning around.


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Panpage

Panpages Bhd (PAN) Snapshot

Open 0.31		Previous Close 0.31
Day High 0.31		Day Low 0.31
52 Week High 09/29/14 - 0.43		52 Week Low 01/7/15 - 0.29
Market Cap 73.6M		Average Volume 10 Days 212.9K
EPS TTM -0.0089		Shares Outstanding 241.4M
EX-Date 09/26/13		P/E TM --
Dividend --		Dividend Yield --

Quarter Result:

F.Y.	Quarter	Revenue ('000)	Profit before Tax ('000)	Profit Attb. to SH ('000)	EPS (Cent)	DPS (Cent)	NAPS
2014-12-31	2014-09-30	8,189	-1,143	-1,077	-0.45	-	0.2843
2014-12-31	2014-06-30	8,739	730	790	0.33	-	0.2899
2014-12-31	2014-03-31	4,363	-3,595	-3,514	-1.46	-	0.2868
2013-12-31	2013-12-31	11,431	2,859	1,634	0.69	-	0.3100
2013-12-31	2013-09-30	10,361	2,470	2,551	1.14	-	0.3026
2013-12-31	2013-06-30	7,636	1,313	1,375	0.57	2.00	0.3121
2013-12-31	2013-03-31	4,541	-1,359	-1,054	-0.44	-	0.3078
2012-12-31	2012-12-31	17,604	4,185	4,663	1.94	-	-
2012-12-31	2012-09-30	14,256	3,418	3,358	1.40	-	0.2912
2012-12-31	2012-06-30	11,649	2,907	2,810	1.17	2.50	0.2767
2012-12-31	2012-03-31	8,538	1,162	979	0.41	-	0.2896

The company operates principally through Information Technology and Search & Advertising segments.

Information Technology division   Provides radio frequency identification solutions for businesses by integrating software, hardware, maintenance, and support services.
e-Security solutions, such as Paymate Secure Suite, a security platform designed to manage data transmissions through unsecure networks.
e-Procurement Suite, a platform that automates the value chain of the purchasing proces; and cloud computing and infrastructure solutions.
Further, it is engaged in the distribution of software products; development of Web portals; and provision of computer programming services.

Search and Advertising division    The company's online business platform operates as a specialized Internet search engine that allows users to search a structured database of local businesses using geographic parameters under the brand name of PanPages.com.
It also prints business directories for commercial and industrial business users; offers online advertising and marketing services through the use of Google Adwords services; resells third party online advertisement products for Google, Alibaba, and Facebook, as well as other Internet advertisement solutions; and is engaged in content development business. 








As shown above, the group has healthy balance sheet with net gearing of 0.13 times.




As shown above, it seemed that the bulk of the group's revenue nowadays is derived from Search & Advertising.






According to management's explanation above, the decline in profitability of Sale & Advertising is due to lower sales from the print business directory division. The online products continued to do well with revenue growth in latest quarter.
Higher expenses was due to commencement of operations of certain subsidiaries in Thailand and Indonesia.


Comments

(a) Panpage was previously known as CBSA Bhd (CBS Technology Bhd) and specialised in provision of RFID related IT solutions. However, in recent years, they ventured into sale and advertising business (involving both print and online) ("SA Business"). This new division has now become the dominant revenue contributor to the group.

(b) In March 2013, the group received an offer from a private equity firm to acquire the SA Business for cash consideration of RM120 mil, equivalent to RM50 sen per share. The deal was subsequently called off after both sides failed to reach agreement on terms and conditions.

(c) I have briefly gone through the Panpage website. It reminded me of Alibaba. It allows a user to search for suppliers for merchandises they are interested in.

(d) As usual, the purpose of this study is to get a general overview of the group. I will only undertake a more detailed study once the group has reported sustainable turnaround. But the group seemed to be maintaining momentum for its online business (print directory experienced decline). Will continue to keep track of this company especially its quarterly results.


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Pentamaster

Pentamaster Corp Bhd (PENT) Snapshot

Open 0.52		Previous Close 0.52
Day High 0.53		Day Low 0.51
52 Week High 02/5/15 - 0.54		52 Week Low 03/3/14 - 0.21
Market Cap 68.6M		Average Volume 10 Days 5.6M
EPS TTM 0.02		Shares Outstanding 133.2M
EX-Date 07/11/08		P/E TM 24.4x
Dividend --		Dividend Yield --

Pentamaster group designs, assembles, and installs computerized automation systems and equipment in Malaysia, the People’s Republic of China, the United States, the Philippines, Taiwan, Singapore, South Korea, and internationally. The company operates through two segments, Automated Equipment and Automated Manufacturing Solutions.



Quarter Result:

F.Y.	Quarter	Revenue ('000)	Profit before Tax ('000)	Profit Attb. to SH ('000)	EPS (Cent)	DPS (Cent)	NAPS
2014-12-31	2014-09-30	22,307	2,439	2,011	1.51	-	0.4463
2014-12-31	2014-06-30	26,689	2,544	1,607	1.21	-	0.4311
2014-12-31	2014-03-31	9,758	-613	-1,082	-0.81	-	0.4189
2013-12-31	2013-12-31	16,698	1,053	272	0.20	-	0.4269
2013-12-31	2013-09-30	12,161	463	48	0.04	-	0.4252
2013-12-31	2013-06-30	17,293	854	407	0.31	-	0.4230
2013-12-31	2013-03-31	21,192	1,548	1,682	1.26	-	0.4172
2012-12-31	2012-12-31	16,159	-1,884	-1,445	-1.08	-	-
2012-12-31	2012-09-30	15,775	538	606	0.45	-	0.4199
2012-12-31	2012-06-30	15,049	545	542	0.41	-	0.4159
2012-12-31	2012-03-31	9,913	-1,282	-1,036	-0.78	-	0.4120

The group returned to profitability since June 2014 quarter. In September 2014 quarter, results improved further.




Healthy balance sheets






Comments

(a) Pentamaster's case is very simple and easy to understand. The group is involved in manufacturing of automated equipment / systems for semiconductor manuafcturers. Since June 2014 quarter, the group has returned to profitability. Earnings improved further in September 2014 quarter.

(b) Going forward, earnings is expected to improve further as the semiconductor industry is currently doing very well, driven by , inter-alia, strong demand from smartphone manufacturers. 

(c) Based on estimated sustainable EPS of let's say, 6 sen, the stock is trading at approximately 8.3 times PER. Strictly speaking, it is still good value for money.

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Theta Edge

Theta Edge Bhd (THETA) Snapshot

Open 0.30		Previous Close 0.30
Day High 0.30		Day Low 0.30
52 Week High 06/25/14 - 0.65		52 Week Low 12/15/14 - 0.20
Market Cap 32.2M		Average Volume 10 Days 20.8K
EPS TTM -0.07		Shares Outstanding 107.2M
EX-Date 10/20/09		P/E TM --
Dividend --		Dividend Yield --

Quarter Result:

F.Y.	Quarter	Revenue ('000)	Profit before Tax ('000)	Profit Attb. to SH ('000)	EPS (Cent)	DPS (Cent)	NAPS
2014-12-31	2014-09-30	25,975	2,862	-1,722	-1.61	-	0.6000
2014-12-31	2014-06-30	24,205	-2,518	-2,518	-2.35	-	0.6100
2014-12-31	2014-03-31	12,923	-2,828	-2,828	-2.64	-	0.6400
2013-12-31	2013-12-31	21,488	-517	-522	-0.49	-	0.6600
2013-12-31	2013-09-30	41,001	-2,613	-2,613	-2.44	-	0.6700
2013-12-31	2013-06-30	19,390	-1,601	-1,601	-1.49	-	0.6900
2013-12-31	2013-03-31	13,024	-3,281	-3,281	-3.06	-	0.7100
2012-12-31	2012-12-31	23,266	1,604	1,584	1.48	-	-
2012-12-31	2012-09-30	15,630	-4,368	-4,412	-4.11	-	0.7200
2012-12-31	2012-06-30	17,026	-2,650	-2,650	-2.47	-	0.7700
2012-12-31	2012-03-31	19,370	-1,492	-1,494	-1.39	-	0.7900

Theta Edge Berhad, an investment holding company, provides information communication and technology services in Malaysia. It operates as a dealer, software writer, compiler and tester, system developer, trainer, and consultant in computers and services related to information technology industry, as well as operates as a public mobile data network operator. 

Comments

The group is loss making