Thursday, September 9, 2021

Let's Talk EP2: OTS Holdings Released Their FY21 Full Year Results

Please read till the end for a SPECIAL SURPRISE!

Since the last article as of 15 Jun 21, OTS has released its full year result.

SAC Capital has subsequently provided a “Buy” rating on them with a price target of 40 cents (SAC Target, not mine) as per article.

As quoted in the article, these are the interesting pointers that I like to highlight:

“…Earnings excluding IPO expenses would have been 13.9% higher y-o-y at $4.0 million. Revenue for the period was 11.5% higher at $38.5 million…”

“… OTS made inroads into Malaysian foodservice sector in early 2020 before Covid-19 hit. It plans to commence sales in the Philippines in Nov 2021 to take on competitor brand SPAM. In Indonesia, it has a 50:50 JV with Salim Group to produce and sell processed meat products…”

Furthermore, I will like to add the following 2 points:

1. Many investors tend to miss this – but if we look at the cashflow generated from the operating activities, it is a significant increase of over 300%!

This is mainly due to significant improvement in their operations, especially the changes in Inventory – from an increase of S$5.2m ending FY20, to a reduction of S$2.139m ending FY21 – meaning their inventory are selling fasting!

2. Initially, I was also worried if their expansion may mean that they need more cash in future. But looking at the Cash and cash equivalent amount at the end of FY21 which was S$15m, it seems that these worries are irrelevant.

Conclusion

In short, I just like to point out the other positive aspects of OTS full year results in terms of cashflow as a company that just IPO.

Although I am still not vested yet BUT I had tried their luncheon meat last month as posted on InvestingNote (1 week after trying a South Korean Brand). In my opinion, it is definitely less salty and taste better.

Screenshot of InvestingNote

Therefore, I took the opportunity to just write to OTS if they were interested to provide anything EXCLUSIVELY for my readers.

Just to be upfront, this is not sponsored. I just wanted to try something different this time round for the readers.

AND OTS GOT BACK TO ME!

This is an exclusive deal for T.U.B. readers:

Subject to the following

- 1 person can only use the code ONCE.

- This promotion will end on 16 Sep 21.

- Subject to availability.

What should you do?

Go to their website (https://golden-bridge.com/shop/ or https://www.ellaziq.com/shop) and apply the coupon code accordingly to get the 15% OFF! (See the picture below)

Golden Bridge Website code: GB15OFF (15% off min spend $40)

Ellaziq Website code: EL15OFF (15% off min spend $40)

Taken from Golden Bridge Website

That’s all.

I hope you like this special surprise!

See you in the next post!

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