Vibrant is a holding company that mainly focus on logistic business with 3 other interrelated division - Finance Service, Property Development and Property Management. It is also the main sponsor of Sabana REIT, the first Shariah Compliance REIT listed in Singapore.
Since listed in SGX, the dividend payment increased every year. The latest full year dividend was 0.55 cents or about 5% dividend yield based on current dividend yield.
Company Performance Review
The company registered an increase of 8% of revenue to S$51M, net profit increased by 90% to S$6.8M (net profit margin was 13%) due mainly from lower fair value loss on quoted equity securities as compared to previous corresponding period.
The Group’s share of profits from associates decreased by 65.1% to $734,000 from the previous corresponding period due to lower contribution from China Southwest Energy Corporation Ltd. Consequently, the Group achieved a profit after tax and non-controlling interest of $6.8 million for 1Q2015, up 89.9% from $3.6 million in 1Q2014.
As at 31 July 2014, the Group has cash and cash equivalents of $41.8 million, and net gearing of 0.81 times.
The annualized EPS was 1.08 cents with NAV of S$0.1454, which translated to annualized ROE of about 5% - 10%. With annualized PE Of about 10X, I think the price is fairly valued. It is suitable for those investors who prefer a good and steady dividend yield play stock as so far the dividend payment is increased steadily over the years.
Company Outlook Comment
On 20 August 2014, the Group completed the 35% acquisition of the Equity Plaza at 20 Cecil Street, Singapore 049705. Cecil House will undergo upgrading and retrofitting work to maximize the gross floor area. The redevelopment of the 6-storey ramp-up chemical warehouse at Gul Circle is expected to be completed in 2016.
The business outlook continues to be challenging with uncertainties in global and regional economic and geopolitical concerns. The Group will continue to strengthen and expand its businesses and portfolio whenever opportunities arise.