Powermatic Data Systems has long been a darling of some value investors. The stock's undervaluation has been primarily owing to 1) its freehold investment property that has appreciated, 2) its cashpile (with zero debt) and 3) its growing wireless connectivity business.

Basically, its $35 million of cash and the $35 million market value of the property (as of end-FY19) add up to the current market cap of the company. So, the market has ascribed zero value to its thriving operating business, which generated $7 million net profit in FY19 on $21 million of revenue.

See AGM presentation material here and NextInsight's past articles (links at the bottom of this page).


KatherineAng DrChen719Executive director Katherine Ang and executive chairman Dr Chen Mun at the FY19 AGM. NextInsight file photo.Powermatic Data this evening announced a positive profit guidance with respect to its upcoming financial results for the half year ended 30 September 2019.

"The Board expects the 1HFY2020 Results to show a significant improvement in profits as compared to the profits recorded in the corresponding period of the previous financial year."

The company will announce its 1HFY2020 results on or around 7 November 2019.



Stock price 

$1.99

52-week range

$1.38 – $2.00

Market cap

S$70 m

PE (ttm)

9.95

Dividend yield* 

4.0%

Year-to-date 
return

34%

Shares outstanding

34.95 m

*Includes special dividend
Source: Bloomberg

In addition, the Board announced that it is reviewing the capital structure of the Company (including options relating to the Company’s property at No. 7 and 9 Harrison Road Singapore 369650 / 369651) which may or may not involve a capital reduction.

The Company has engaged professionals to advise the Board on the review.

"The review is still ongoing and is at a preliminary stage, and the Company has not made any decision with respect to, and has not entered into any agreement for, any possible transaction, at this juncture."


Share Prices

Counter NameLastChange
AEM Holdings1.820-0.030
AusGroup0.030-0.001
Avi-Tech Electronics0.375-
Best World Int.1.360-
CEI0.960-0.020
China Sunsine1.060-0.010
CNMC GoldMine0.250-0.005
CSE Global0.555-0.015
Eagle HTrust USD0.530-0.005
Food Empire0.600-0.015
Golden Energy0.165-0.004
GSS Energy0.088-0.006
ISDN Holdings0.220-0.005
ISOTeam0.2450.005
JB Foods0.650-
KSH Holdings0.455-0.020
Miyoshi0.033-0.001
Moya Asia0.066-0.001
Nordic Group0.270-
Oxley Holdings0.355-0.005
Procurri0.370-
REX International0.174-0.018
Riverstone0.9650.005
Roxy-Pacific0.4000.015
Sing Holdings0.395-0.005
SingMedical0.305-0.010
Straco Corp.0.705-0.010
Sunningdale Tech1.290-0.010
Sunpower Group0.545-0.020
The Trendlines0.0900.001
Tiong Seng0.200-0.025
Uni-Asia Group0.730-0.010
Yangzijiang Shipbldg1.020-0.040

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 2439 guests and no members online