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Oniontech: Part IV. Shareholder trends and conclusion
Perceived Share float status & trading volume
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last 6mth Price Range from AR |
10 yr highs |
Share float from AR |
Share float Status from AR |
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0.1-0.185-0.11 |
29c 06 IPO |
-62,578,950 |
cornered |
Observations:
1. Share buyback activities of almost 11m shares since November 2006 between 8 to 16c with the latest in June 2007. Share buy back activities are always very good indicators of shareprice movements as company is confident of future cashflows.
2. Share trading volumes since the publication of the annual report in March stand at 88m shares from 10c to 18c till the last 1 week with the price coming down to 11c with the latest half year marginal loss but marginal increased growth in topline esp from core markets in Korea while increased cost of operations integrating acquisitions in Australia and China in the last 6mths.
3. 3. Last 16 trading days with 5 selldowns saw 7m shares trading or an average of 400,000 shares a day with vol thinning out in the last 5 days.
4 4. The short term marginal losses coupled with the current weak sentiment will keep the price of oniontech depressed. Trading just 2c above NTA. Any major turnaround in net profits with high levels of cashflow in the next 6mths once CAPEX for future growth is expected to complete hopefully in the next 6 mths & integration of overseas sales subsidiaries in time for sale of 3G and IDM service.
Conclusion/recommendations
Classis IPO stock raising funds for growth. Listed in 2006 at 29c and then sank down to under 10c. Some encouraging numbers looks in the way the company is managing growth within operating cashflow within resorting to debt or bonds. In fact, conducting a share buyback just 1yr after IPO show management commitment to shareholder value.
With such a small free float of almost 14m shares and its share trading patterns, again the float would be easily cornered. In my opinion, a stock to look out for post rally recovery.
Oniontech Limited: Part III : Shareholder thrends:
The greatest predictor of historical, present and future shareprice moments.
6-mth Stock Price
High: 0.19 Low: 0.09 current 11c
Shareholder Structure
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15-Mar-07 |
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Size of shareholdings |
No. of shareholders |
% |
No. of shares |
% |
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1 ? 999 |
2 |
0.53 |
1,000 |
? |
|
1,000 ? 10,000 |
105 |
28.00 |
587,000 |
0.35 |
|
10,001 ? 1,000,000 |
257 |
68.54 |
19,810,000 |
11.67 |
|
1,000,001 and above |
11 |
2.93 |
149,383,950 |
87.98 |
|
Total |
375 |
100.00 |
169,781,950 |
100.00 |
Top 20 Shareholders
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15-Mar-06 |
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10-Nov-05 |
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Name |
No. Of Shares |
Name |
No. Of Shares |
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KIM ENG SECURITIES PTE. LTD. |
98,345,600 |
PUBLIC |
42,000,000 |
|
O,W&W INVESTMENTS II LIMITED |
13,636,350 |
OTHER INDIVIDUALS |
22,718,150 |
|
DAIWA SECURITIES SMBC SINGAPORE PTE LTD |
9,134,000 |
STIC |
20,000,000 |
|
UNITED OVERSEAS BANK NOMINEES PTE LTD |
8,075,000 |
OWW |
13,636,350 |
|
RAMESH S/O PRITAMDAS CHANDIRAMANI |
4,752,000 |
EMPLOYEES |
12,352,350 |
|
VISION CAPITAL PRIVATE LIMITED |
4,500,000 |
NEOPLUX |
10,000,000 (OUT) |
|
PROVIDENCE INVESTMENTS PTE LTD |
2,000,000 + 1,000,000 |
SYSINVESCO |
5,000,000 |
|
HSBC (SINGAPORE) NOMINEES PTE LTD |
2,500,000 |
DUTCH ASIA |
5,000,000 |
|
DUTCH ASIA PRIVATE EQUITY FUND C.V. |
5,000,000 ? 2,500,000 |
KIC |
4,000,000 |
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PHILLIP SECURITIES PTE LTD |
1,741,000 |
HUR JUNG YOUNG |
2,374,000 |
|
WONG AH WAH @ WONG FONG FUI |
1,200,000 |
HEESUNG |
2,100,000 |
|
HONG LEONG FINANCE NOMINEES PTE LTD |
966,000 |
PROVIDENCE |
2,000,000 |
|
OCBC SECURITIES PRIVATE LTD |
918,000 |
YOO BYUNG MIN |
1,500,000 |
|
TAI TAK SECURITIES PTE LTD |
900,000 |
CJOI JIN GI |
1,485,000 |
|
LOW HAN SENG |
750,000 |
LEE JEI HOON |
616,000 |
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OCBC NOMINEES SINGAPORE PTE LTD |
583,000 |
|
|
|
YIP WAI MUN |
500,000 |
|
|
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SIONG AI POH JOANNE |
448,000 |
|
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CHIAM WEI JUN IRVINE (ZHAN WEIJUN IRVINE) |
381,000 |
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DBS VICKERS SECURITIES (SINGAPORE) PTE LTD |
380,000 |
|
|
|
Total |
155,209,950 |
Total |
144,781,850 |
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Free Float |
14,572,000 |
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Note: There?s only FY 2006 shareholder structure list. The 10 Nov 2005 list is from Oniontech?s Prospectus; hence most of the Top 20 are from the IPO.
Sharebuyback activities commenced final quarter of last year November which saw 11m share bought back with the latest in June 300,000 at 16c.
Shareholder Trends
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Freefloat latest year |
Shareholder report date in latest Annual Report |
Vol traded after latest AR 15 March 2007 |
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14,679,050 |
15-Mar-07 |
88,100,000 |
Perceived Share float status & trading volume
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last 6mth Price Range from AR |
10 yr highs |
Share float from AR |
Share float Status from AR |
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0.1-0.185-0.11 |
29c 06 IPO |
Oniontech Limited: Part II : FinancialsCore Business
Financial Analysis: a. Company?s operating cashflow has been positive and high in 2005 & 2006. At the later part of 2006, company embarked on 2 overseas acquisitions in Australia and China to increase their customer bases. Cost of acquisitions & integration cost has weight in on the 1st half 2007 numbers with core market Korea contributing to growth in revenue. b. A key potential that has attracted my attention is the start up revenue from 2 new businesses in 3G value add services and IDM products. Cost of development is sunk & one off and outsourced showing management keen eye on cost & not having a high number of development team. If executed well, the ready products with modifications/enhancements would see incremental costs in development but maybe able to derived significant high margin revenue when sold in different markets that the company has diversified into. Ie China, Aussie, Japan, Vietnam, Russia through fast growing 3G services. c. Core operations and new businesses in Korea are generating free cashflow unfortunately being used in overseas ventures esp Australia. d. Company has also used quite a bit of cash for share buy backs which in some ways to good for long term shareholder value and demonstrate confidence of the company of future operating cashflow without resulting to share financing or debt. Company has a very low level of debt.
Oniontech Limited: Part I : Core Business Starting coverage of oniontech as a potential post IPO growth stock which may spring major surprises in the next 6-9mths. Company is growing its core businesses in Korea?s 3G broadband market with 2 new businesses of 3G products/services and IDM services showing decent top-line contributions. Company has started to widen its international coverage in Russia, Japan through tie ups with NEC, Australia, Vietnam and China where potential market growth for its 3G and IDM services may yield high net margin revenue as cost is sunked in the development and any new costs for market localisation would be incremental. Core Business Oniontech was established in 2000 by the current CTO and a team of software engineers. Its first principal activity is the provision of software solutions such as RBT (Ring Back Tone), which is their flagship product, and 3G VMS (Voice Messaging System) solutions to telcos who provide these services to their customers. Oniontech?s other principal activity is the provision of content related services such as mobile games and content aggregation for mobile data services such lifestyle and news information. Its other businesses include Digital Voice Recording and the provision of community entertainment portal services. Apart from expanding its current business activities to Guangdong, Australia, Pakistan, Russia and Japan, Oniontech has also sought to diversify their income streams from solutions (consisting 85% of revenue) to new value-added avenues such as 3G wireless internet portal and iDMB (Digital Multimedia Broadcasting). History of diversification
Management Team Jang Jong Jung (Chairman & CEO) - Bachelor of Science degree in Computer Science from Dongkook University in Korea - Joined in October 2001 Hur Jung Yong (VP & CTO) - Bachelor of Science Degree in Mathematics from Yonsei University in Korea - One of the founders Lee Jei Hoon (VP & CFO) - Bachelor in Business Administration from Yonsei University in Korea - Master of Science in Finance from University of Illinois at Urbana-Champaign - Joined in May 2003 Choong Yoon Kian (Non-Executive Director) - Bachelor of Social Science degree, majoring in economics and accounting, from Bristol University, United Kingdom - Chartered Financial Analyst and a fellow of the Association of Chartered Certified Accountants - Appointed to the Board on 31 December 2004 Adrian Chan Pengee (Independent Director) - Bachelor of Laws degree from the National University of Singapore - Member of the Governing Council of the Singapore Institute of Directors - Appointed to the Board on 19 September 2005 Lee Keen Whye (Independent Director) - Master?s degree in Business Administration from Harvard Business School - Bachelor's degree in Business Administration from the University of Singapore - Appointed to the Board on 19 September 2005 Yoo Byung Min (Director, Biz Development) - Bachelor and Master of Science Degrees in Information Engineering from Sungkyunkwan University - Joined in September 2002 Choi Jin Gi (Director, Solutions Development) - Bachelor of Science in Genetic Engineering from Sungkyunkwan University, Korea - Joined in January 2000 Competitive Edge Has in-depth experience in Voice Processing Technology and other audio-related technologies and is a total solutions provider (design, develop, install and operate) for the RBT services on a large scale.
Competitive analysis Oniontech only provides RBT solutions for one of the telcos in Korea, LGT. Widerthan Co., Ltd, Witcom and Wiz Communications Co., Ltd provide certain portions of the RBT system to SKT and KTF.
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