Procurri’s bumpy ride may smoothen out with more acquisitions

Procurri’s bumpy ride may smoothen out with more acquisitions

Benjamin Cher
15/11/16, 11:44 am

SINGAPORE (Nov 15): DBS Group Research is maintaining a “buy” call on Procurri with a target price of 56 cents, citing a potential acquisition in the works.

Analyst Sachin Mittal notes in a Friday report that Procurri is one of the few companies in the world that offer hardware resale and independent maintenance services, which is reflected in its 33% gross margins. This is further bolstered by 23% earnings compounded annual growth rate which could be aided by potential acquisitions to enhance its global footprint.

To recap, Procurri’s 9M16 earnings growth excluding one-offs was slower than expected at $5 million, below forecasts of $6.5 million due to revenue miss, notes Sachin.

Post listing, the company plans to bid for bigger projects between $5 million to $10 million, which requires more paper work and processing time. Procurri is also focusing on maintenance services which commands higher margins, notes Sachin.

Sachin believes that there will be a significant acquisition by the end of FY16 or start of FY17 that could contribute over $3 million in earnings in FY17. Procurri could also see earnings grow organically to $11 million in FY17 by securing larger IT projects, notes Sachin.

“Enterprises are increasingly extending the life of their IT infrastructure by using pre-owned equipment and independent maintenance service to secure up to 60% cost savings,” says Sachin.

Shares of Procurri are trading flat at 46 cents.

Boustead Projects records 2% dip in 4Q earnings to $5.7 mil despite revenue surge

SINGAPORE (May 23): Real estate solutions specialist Boustead Projects posted a 2% drop in earnings to $5.7 million for the 4Q19 ended March, compared to restated earnings of $5.8 million for 4Q18. This brings full year earnings for FY19 to $30.6 million, some 5% higher than earnings of $29.2 million a year ago. The group recorded earnings per share (EPS) of 1.8 cents for 4Q19, the same as a year ago. For FY19, EPS rose to 9.8 cents, compared to 9.1 cents for FY18. The decline in 4Q earnings was mainly due to lower gross margins in design-and-build projects and depreciation incurred o....

Sunpower wins $8.7 mil contract from repeat customer

SINGAPORE (May 23): Sunpower Group, the environmental protection solutions specialist, has signed a RMB43.56 million ($8.7 million) contract with repeat customer Zhejiang Petrochemical Co. Sunpower will provide high-efficiency heat exchangers for one of China’s largest domestic atmospheric and vacuum pressure units with an annual capacity of 10 million tons, which is part of Phase 2 of Zhejiang Petrochemical’s refinery and chemical integration project. The project is part of China’s 13th Five-Year National Petroleum and Chemical Plan. Sunpower started its partnership with Zhengj....

Sanli posts 28% drop in FY19 earnings to $2.2 mil on lower revenue; declares 0.25 cent final dividend

SINGAPORE (May 23): Environmental engineering company Sanli Environmental saw its full year earnings fall 27.7% to $2.2 million for the FY19 ended March, from $3.1 million a year ago. Earnings per share (EPS) fell to 0.83 cents for FY19, compared to 1.19 cents for FY18. FY19 revenue slipped 5.6% to $71.4 million, from $75.6 million a year ago. The decline was mainly attributed to the decrease in contribution from the group’s Operations and Maintenance segment, which saw turnover decrease by 30.6% due to increased competition. Gross profit dropped to $9.8 million for FY19, some 10....