【SMJ Intl 40B 交流专区】SMJ International Holdings

PaPerSoldier

主要做地毯。
在catalyst board IPO 上市。

公司官网：http://smjf.com.sg/

SMJ International Holdings IPO: Here’s What You Need To Know
Shares Investment – Fri, Jun 27, 2014 6:15 PM SGT
https://sg.finance.yahoo.com/new ... know-102602374.html

There’s a market for everything. Carpets, although not as easy to identify, in terms of market reception compared to consumables like bread, or coke, is by and large, in a quiet spot that is profitable, if you look hard enough.

SMJ International Holdings (SMJ) sells and distributes carpets under its proprietary brand “SMJ”, and the third party American brand known as “Shaw Contract Group” (SCG).

The Shaw brand is produced by Shaw Industries (Shaw is a member of Berkshire Hathaway Inc), where SMJ is the sole distributor in Singapore.

How Does SMJ Make Money?

So how does SMJ make money? Revenue is generated from its two business segments, namely its “Contract Sales” (CS) segment, and “Distribution Sales” (DS) segment.

Under its CS segment, notable names that SMJ have done contract work for are the Hong Kong and Shanghai Banking Corporation, DBS Bank, and Apple.

Short turnaround time, choices of good quality material and designs, and of course, SMJ’s belt of superior know how, are the reasons why SMJ does so well in this niche scene in Singapore.

However, as CS are dependent on a number of factors, which are beyond SMJ’s control, like the number of commercial property releases and so on, attention is paid to grow its other segment (DS), which is now outstripping its CS segment.

Its DS segment, has over the years, reflected consistent and positive results for SMJ.

Sales for the DS segment is distributed through its strong network of more than 260 carpet dealers, carpet importers and carpet installation companies in over 20 countries.

Revenue Breakdown

Revenue Breakdown (Source: Prospectus)

Distribution Sales Looking Good
As sales from the DS (which is growing in some key countries) consists of only sales made from the SMJ brand, it is apparent that SMJ’s own brand is establishing a good sense of presence, and it is not reliant on the SCG brand of carpets for sales growth.

This strength is particularly seen in Asia, as SMJ saw progressively pleasant growth coming in from countries like Malaysia, Indonesia, and the Philippines.

distribution sales segment

Distribution Sales Segment (Source: Prospectus)

Stable Profitability Metrics
Decking the net profit margin and Return on Equity (ROE) in line for comparison, one would’ve noticed a consistent and stable trend.

The double digit ROE, where it averages around 21 percent for the past three years, coupled with the average Net Profit Margin (also over the past three years) of 11 percent shows the good quality of earnings of SMJ.

Profitability Metrics

Profitability Metrics of SMJ

This is made even clearer where the element of “net cash provided by operating activities” are consistently close to its net profit, which means there isn’t any overbooking of revenue billed, but not yet collected.

Listing Details, Utilisation of Proceeds, Dividend Payout

SMJ is expected to list on 30th June, on the Catalist board of the Singapore Exchange.

The indicative price set for the IPO is$0.28 , and a total of 20.24 million placement shares will be issued.

The IPO is expected to list and commence trading on the catalist board of the Singapore Exchange on 30 June 2014, at 9am.

The company is expecting to payout30 percent of its earnings as dividends to shareholders for financial year 2014 and 2015.

The company is expecting to raise some $2.4 million from the IPO, and the allocation of the proceeds will be as follows:

Approximately $1.5 million for business expansion (joint venture and/or strategic alliances) Approximately $0.34 million for improving its inventory management system and logistics support Approximately $0.25 million for marketing and business development Approximately $0.31 million for general working capital

Investment MeritsStrong flagship of recognizable carpet brands in the carpet industry (SMJ and SCG brands) Authorised sole distributor of SCG brand of carpets in Singapore Strong distribution network (more than 260 carpet dealers, carpet importers and carpet installation companies in Singapore and over 20 countries mainly in Asia) allows greater point of sales and deeper market penetration for SMJ brand Stable numbers tracked by its profitability metrics

Investment Risks

Slowdown in commercial properties’ launches (Singapore) Slowdown in economy, demand for its carpets in the countries within its distribution network Competition against fragmented buyers within countries its distributors are situated Discontinuance of distributorship between SMJ and Shaw

SI Research Takeaway
Growth in SMJ’s distribution segment seems to be only the tip of the iceberg in terms of growth.

Scalability, is still largely not extrapolated, and has the potential to. For instance, SMJ has not even tried going into Europe yet.

The focus in Asian markets for now is quite a good move for SMJ as it concentrates on penetrating deeper into the markets where it expects good growth.

PaPerSoldier

别人的分析

SMJ International Holdings Ltd
Tuesday, 24 June 2014
http://singapore-ipos.blogspot.s ... mment=1403669293423

SMJ International Holdings Ltd ("SMJ" or the "Company") is placing out 20.24m shares at $0.28 each of which 14m are new shares and the balance are vendor shares. There is no public offer and the Company will list on 30 June 2014 on the Catalist. The market cap of the company is $21.84m based on the IPO price.

SMJ is a carpet specialist serving the commercial and institutional sectors in Asia and has a track record of more than 25 years.



If you want to know exactly what they do... the picture below will tell u. They lay carpets for your work place.



Financial Highlights



The charts shows a stagnating top and bottom line over the last 3 years. Nothing exciting or worth shouting about.




Based on the fully diluted EPS of 3.5 cents, the IPO is valued at 8x FY2013 PE. It is probably fairly valued.

The NTA of 19c will provide a psychology support should the price fall on its debut.

Use of Proceeds



You can see from the use of proceeds who is the biggest beneficiary from its IPO! It will be the service providers!

Shareholders



This is a family owned business with the family still owning 70% of the company post IPO and the two sisters are the CEO and deputy CEO.

Dividend Policy

The Company intends to distribute 30% of its profit after tax as dividends to its shareholders for FY2014 and FY2015. Assume EPS remains the same as FY2013, the back of the envelope yield at IPO price will be around 3.75%.

Mr IPO's views and Conclusion

Since there is no public tranche and that i am not vested, i will not spend too much time on it. This is a small cap company in a competitive environment.
Put yourself in the shoes of the corporate renovating the office, do you really care if the carpet in your office is of the SMJ brand and do you even bother to contract SMJ directly or will you just leave it in the hands of the interior designer? From the interior designer perspective, you will just source for the cheapest available carpet of decent quality. Would you even bother if the carpet has "500 threadcount" and is of SMJ brand? In other words, i don't think SMJ has any "pricing" clout when it comes to supplying the carpet. It will have to fight it out with the cheapest supplier and the supplier can be from Indonesia, Malaysia or China.Maybe you might want to find out what brand of carpet your office is using tomorrow and see if you can spot the SMJ brand!

I will give it a 0 Chilli rating and will not apply even if there is a public tranche. The shares are probably better suited to be placed out to friends and family and i am sure HL Finance will do a good job in that regard.

PaPerSoldier

他们的客户：

http://smjf.com.sg/project-reference