Saturday, February 25, 2017

This Counter Has Managed To Pass The Super Scorecard!

Despite holding onto this counter for almost 1 year, I realised I have yet to blog about this counter. Therefore I shall do a short review on this counter since it has recently released its full year results and its share price has ran up quite a bit.

Furthermore, this counter used to pass the Enhanced Triple S Scorecard with Dividend Scorecard Portion. But now I will be doing the review using the Super Scorecard instead. It will be interesting how this counter reacts to the changes in the Super Scorecard.

Profile In Short

Captii Limited is an investment holding company that operates in the technology and telecommunication businesses in South East Asia, South Asia, the Middle East, Africa, and internationally.

It operates through three segments: Unifiedcomms, GlobeOSS, and Others. It offers content-driven mobile value-added services; mobile messaging and signaling systems, solutions, and managed services; mobile network operation support systems, solutions, and managed services; and venture investment services. The company offers telecommunications, technology, and customized solutions for telecommunications operators, service providers, and enterprises; and research and development, software engineering, system integration, project management, and maintenance and support services for the telecommunications industry. It also offers global roaming quality and service management solutions; and management services, as well as distributes information technology and telecommunications products.

The company was formerly known as Unified Communications Holdings Limited and changed its name to Captii Limited in May 2014.

Captii was founded in 1998 and is based in Singapore. Captii is a subsidiary of Worldwide Matrix Sdn Bhd.

(If you do not know what they really do, it basically state that it provides value-added services for the telecommunication industry.)

Based on The Super Scorecard (Present Price of $0.540 as of 25 Feb 2017):

As per the above pictures, the counter passed the Super Scorecard. 

So what is so good about it?

Pass the Super Scorecard - The fact that, at an even higher price, the counter continues to pass the super scorecard amazed me. This also meant that there is still room for the share price to rise before it fail the Super Scorecard.

High Cash Profit Margin - With the Super Scorecard, I am able to analyse the change in Cash Profit Margin for the last 5 years. The Cash Profit Margin has been able to maintain above 15% for the last 5 years. In addition, the last 2 years has risen above 24%! Amazing! 

No Leverage - For the last few years, Captii does not have any leverage despite the growth!

Increasing Dividend Amount - The company has paid dividend every year and the dividend amount has rise from 0.01 in 2010 to 0.025 in 2016 (There was a share consolidation of 10 for 1 in 2015).

High number of Telecommunication Users - I am not very sure if the company's services are usage-based or contract-based. But the high number of mobile users in South East Asia will have assisted with the growth of the company as well as the demand of its service.

Telecommunication Industry - Most of the customers are major telecommunication companies in each of their respective country within South East Asia. These companies remains profitable and will definitely have the ability to pay Captii when required. Therefore, there will be very low provision for bad debt over the years and its receivables will most probably be collectible within the required time frame.
Taken from http://www.unifiedcomms.com
But there are still some issues such as...

Complicated Business - Rather than being a negative point, this point is to emphasize on the lack of understanding of the company's services that it provides to its clients. Without the full understanding of its services, we may not be able to fully appreciate the services Captii provide to its clients.

High Intangible Amount - The company has a high intangible amount in its non-current asset. If written off, there could be a drastic reduction in its net asset value.

Owned by Malaysia Firm - In my opinion, Singapore investors are not really keen on companies listed in Singapore that is not owned by Singapore companies/Individuals. Captii's major shareholder is a Malaysia firm, Worldwide Matrix Sdn Bhd. Thus, this may have negatively impacted the perception of Captii.

In Short

Since Captii continues to pass the super scorecard at its current price, I will continue to hold on to it and collects its revenue. In my opinion, I believe it has a chance of being the next "PNE Industries Ltd". Do note that I have held PNE Industries for a long time and it has just been rising and rising.

Current Price: $0.540 as of 25 Feb 2017.

Please do your own due diligence before you invest in this stock. 

Do note the author is vested in this counter/company. 

For those interested in getting and understanding a bit more of the Super Scorecard, I will be having a short paid seminar on 25th of March. All participants of the seminar will be able to receive the Super Scorecard after that.

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

No comments:

Post a Comment