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Haha cheong ar.
Novo Group is a global steel and coal supply chain management company which provides international & localized integrated value-added services.
Novo Group manages the reallocation of resources from the supply regions to the demand regions globally
1H 2010
Revenue: US$218 million
Net Profit: US$5.5 million
NAV: US$43.6 million
Interim Dividend: S$0.5 cents
ROE: 13%
EPS: US$0.009 (YTD)
NAV: US$0.071
Share Price: S$0.22
PE: 8.7
Net Cash gearing
Grandmaster gave this tip when it was only 20 cents. Lets see what price will it close tmr haha!!!
At PE 15, its share price will be trading at 38 cents. So lets wait and see.
I hope they don't do an Epure by issuing new shares. Perhaps the Management who owns 70% of the company will offload their stake slowly. The company has bought back 26 million shares last year at an average cost of 12 cents so they might do a private placement to HKSE institutional funds.
ZebraCrossing ( Date: 07-Jan-2010 18:43) Posted:
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Another Dual listing.. another one that is gg to cheong tomorrow!
OMG NOVO GROUP INTENDS TO DUAL LIST IN HKSE
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_2BA4569D94E41418482576A400395112/$file/DualListing.pdf?openelement
Now 22.5 cents (up 2 cents) on very strong volume. Don't miss the last commodity boat.
Will post some of their expansion plans tonight
Volume is pretty high today. Cross the million mark and up by 1 cent. Penny stock CHEONG AR.
IF YOU MISS THE COMMODITY BOAT, THIS IS THE ONE TO BOARD NOW
IF YOU MISS THE COMMODITY BOAT, THIS IS THE ONE TO BOARD NOW
Btw when I say turnaround, I don't mind a turnaround in share prices. What I meant is a turnaround in the company finances and fundamentals :)
grandmaster89 ( Date: 06-Jan-2010 14:58) Posted:
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The stock PE is only 8 despite it being a iron ore and coal supply chain manager. Management repurchased 26 million shares last year. If it matches most commodity stock trading PE, it will have to move up by over 75%
Turn around in prices requires much volume and news.. Need to wait for this stock.
Already up 0.5 cent today. Commodity stock with net cash trading at PE 8 is plain ridiculous
FYI - Novo Group Finances since 2007
Note: Novo Group FY - 01 May - 31 April
1Q 08 (May - July 07)
Revenue: US$133.7 million
Gross Profit: US$17.6 million
Net Profit: US$3.5 million
EPS: 0.76 US cents
2Q 08 (Aug - Oct 07)
Revenue: US$90.8 million
Gross Profit: US$12.8 million
Net Profit: US$2.8 million
EPS: 0.62 US cents
3Q 08 (Nov - Jan 08)
Revenue: US$76.2 million
Gross Profit: US$8.15 million
Net Profit: US$0.89 million
EPS: 0.14 US cents
NAV: US$40.2 million
4Q 08 (Feb - Apr 08)
Revenue: US$91.6 million
Gross Profit: US$17.8 million
Net Profit: US$2.95 million
EPS: 0.64 US cents
1Q 09 (May - July 08)
Revenue: US$266.2 million
Gross Profit: US$27.4 million
Net Profit: US$3.8 million
EPS: 0.61 US cents
2Q 09 (Aug - Oct 08)
Revenue: US$81.2 million
Gross Profit: US$5 million
Net Loss: US$3.6 million
3Q 09 (Nov - Jan 09)
Revenue: US$76.2 million
Gross Profit: US$8.15 million
Net Profit: US$0.89 million
EPS: 0.14 US cents
NAV: US$40.2 million
4Q 09 (Feb - Apr 09)
Revenue: US$100.1 million
Gross Profit: US$5.4 million
Net Profit: US$0.5 million
EPS: 0.07 US cents
NAV: US$40.3 million
Final Dividend: 0.5 SG cents
1Q 10 (May - July 09)
Revenue: US$103.7 million
Gross Profit: US$8.8 million
Net Profit: US$3.9 million
EPS: 0.64 US cents
NAV: US$44.0 million
2Q 10 (Aug - Oct 09)
Revenue: US$114.2 million
Gross Profit: US$24.2 million
Net Profit: US$1.5 million
EPS: 0.25 US cents
NAV: US$43.6 million
Interim Dividend: 0.5 SG cents
Based on its 08 (boom) and 09 (recession), performance, we learn 2 things -
a) Its business is highly cyclical. The periods which brings in the greatest amount of revenues and profits are its 1Q and 4Q. 2Q and 3Q are generally weaker quarters. As Novo Group grows and expands via acquisition of mines and greater client base, this unevenness will be rectified. It is interesting to note that both boom year and recession 3Q are similar.
b) The company had bottomed out in 2Q and 3Q 09 and has turnaround well in 1Q 10 by posting very strong profits - comparable with its boom year first quarter profit. It is heartening to see gross profit level going past the 20 million mark - this has not happen for over 4 quarters. The Management is confident of renewed growth in profits and asset bases and this is typified by an interim dividend.
Will post more about its expansion plans in the near future.
Bidding for Novo Group. Commodity company trading at single digit PE with net cash....board before the boat flies off
Any shareholders here?
Novo Group is a global steel and coal supply
chain management company which provides international & localized
integrated value-added services. Novo Group manages the reallocation of
resources from the supply regions to the demand regions globally.
Incorporated in HK but listed in SGX last year.
1H 2010
Revenue: US$218 million
Net Profit: US$5.5 million
NAV: US$43.6 million
Annualized ROE: 25%
Interim Dividend: S$0.5 cents
EPS: US$0.009 (YTD)
NAV: US$0.071
Share Price: S$0.20
PE: 8
Net Cash gearing
It bears much resemblance with Noble Group in its formative years 15 years ago. Back then Noble didn't own any upstream or downstream assets. Company has been buying back its shares frequently. It bought back over 26 million shares last year at an average cost of 12 cents.
It intends to expand into owning mines in 2010/2011.
Could be a wonderful growth stock since it has enough cash to expand.
1H 2010
Revenue: US$218 million
Net Profit: US$5.5 million
NAV: US$43.6 million
Annualized ROE: 25%
Interim Dividend: S$0.5 cents
EPS: US$0.009 (YTD)
NAV: US$0.071
Share Price: S$0.20
PE: 8
Net Cash gearing
It bears much resemblance with Noble Group in its formative years 15 years ago. Back then Noble didn't own any upstream or downstream assets. Company has been buying back its shares frequently. It bought back over 26 million shares last year at an average cost of 12 cents.
It intends to expand into owning mines in 2010/2011.
Could be a wonderful growth stock since it has enough cash to expand.
Novo Group posts 2Q profit of US$1.5m from loss a year ago
Novo Group, the global steel supply-chain management company, says the group achieved revenue
of US$114.2 million ($158.6 million) for the three months ending Oct 31 (2Q2010) from US$81.2 million
in 2Q2009, representing an increase of 40.6%.
Novo attributes the growth to the expansion of demand of raw materials in North Asia and the contribution
of the domestic trading and distribution business in China and Hong Kong.
With the group benefiting from the recent escalation of steel price and the change of trading terms for
certain major contracts, gross profit increased to US$24.2 million in 2Q2010 from US$5.0 million in 2Q2009
and gross profit margin rising from 6.2% in 2Q2009 to 21.2% in 2Q2010.
On the group’s expense side, distribution and selling expense increased to US$22.5 million in 2Q2010 from
US$5.7 million in 2Q2009 due to the increase in sales and unit freight charge and the change of trading terms
for certain major contracts, while finance cost decreased to US$0.2 million for 2Q2010 from US$0.7 million in
the previous corresponding period. Other operating expenses also declined by 96.8% to US$0.1 million due mainly
to an exchange loss of US$1.9 million in 2Q2009.
Net profit of the group during the period improved to US$1.5 million from a loss of US$3.6 million in the previous
corresponding financial period (2Q2009).
Earnings per share for 2Q2010 recovered to 0.25 cents from negative 0.58 cents in 2Q2009. Net Asset Value (NAV)
per share also moved up to 7.1 US cents as of Oct 31 from 6.5 US cents in April 30.
Recently the group set up a subsidiary to handle non-steel trading business as a new revenue stream. At present,
the group has managed to conclude coal trading contracts and is expecting to obtain fixed allocations from coal
mines in near future.
Novo has also completed procurement of a piece of land for building a steel processing centre in Tianjin.
The construction of factory and installation of the equipment is expected to complete within the second half of 2010.
Source: The Edge Singapore 07 Dec 09
What do you think about this counter?