Some of the things I like about this company includes:
- The founders (aka boss) are still substantial shareholders...
- Core business deals in in Fire Protection and Power Supply which is of recurring and / or maintenance nature, ie. need to be replaced after serveral years...
- Has an interesting and futuristic division on the Fitbone Technique (cosmetic & orthopedic surgery).
- It has been profitable for the last 5 years and its NTA has been increasing steadily over last 5 years.
- It has entered into green-field power plant projects with the aim of developing a new recurring incomestream. In June 2005, its wholly-owned subsidiary, Colben System Pte Ltd (“Colben”), signed a 10-year power purchase agreement with Electricite Du Cambodge (“EDC”), a state-owned utilities company, to develop two power generation projects (a 5MW plant in Sihanoukville and a 10MW plant in Phnom Penh) under a build-own-operate arrangement. The plants are scheduled to start operations towards the end of 2006.
The 1 thing I do not like about this company is that there was a drop in revenue in 2006, compare to 2005. This is due largely to the fall in sales from its Controlled Power Supply division, which had benefited from the completion of a number of major projects in the previous year.
Overall, I still like it! So, I bought in today at $0.19, I belive the intrinsic value to be $0.28... :)
More statistical details tomorrow or maybe the day after... watch this space! :)
Best of luck to your investing!
Warm regards, Fu Chin
P/S: As always, this is not a recommendation to buy or sell anything and investors should always do their own analyses when considering investing decisions.