Hi guys,
Yesterday Gpacket gone up into Multi year high and Limit Up while Redtone also up by 10%
Now what piqued my interest was why should Gpacket up so much in comparison to Redtone?
So i went to check up on their accounts
And these are some findings
1) BOTH REDTONE & GPACKET ARE PART OF THE NFCP FIBERISATION THEME
Malaysian Government has Allocated Rm21.6 Billions for Nationwide Fiberisation so both will be beneficiaries
That is good
2) Now let's take a look at their last quarterly report
Redtone
SUMMARY OF KEY FINANCIAL INFORMATION
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
31 Dec 2019
|
31 Dec 2018
|
31 Dec 2019
|
31 Dec 2018
|
||
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
1 | Revenue |
44,126
|
0
|
101,032
|
0
|
2 | Profit/(loss) before tax |
8,055
|
0
|
18,679
|
0
|
3 | Profit/(loss) for the period |
6,226
|
0
|
15,077
|
0
|
4 | Profit/(loss) attributable to ordinary equity holders of the parent |
5,678
|
0
|
13,746
|
0
|
5 | Basic earnings/(loss) per share (Subunit) |
0.74
|
0.00
|
1.79
|
0.00
|
6 | Proposed/Declared dividend per share (Subunit) |
0.00
|
0.00
|
1.00
|
0.00
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
0.2235
|
0.2154
|
Redtone profit is 0.74 sen
If annualised 0.74x 4 = 2.96 sen
At 47 sen Redtone has a P/E of 15.87
Now look at Gpacket
SUMMARY OF KEY FINANCIAL INFORMATION
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
31 Dec 2019
|
31 Dec 2018
|
31 Dec 2019
|
31 Dec 2018
|
||
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
1 | Revenue |
201,726
|
96,668
|
609,600
|
398,682
|
2 | Profit/(loss) before tax |
-30,067
|
-28,674
|
-49,959
|
-63,644
|
3 | Profit/(loss) for the period |
-27,602
|
-28,488
|
-49,396
|
-62,504
|
4 | Profit/(loss) attributable to ordinary equity holders of the parent |
-26,098
|
-27,883
|
-43,689
|
-59,693
|
5 | Basic earnings/(loss) per share (Subunit) |
-2.90
|
-3.70
|
-4.80
|
-7.90
|
6 | Proposed/Declared dividend per share (Subunit) |
0.00
|
0.00
|
0.00
|
0.00
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
0.2900
|
0.1900
|
In a currency system, there is usually a main unit (base) and subunit that is a fraction amount of the main unit.
Example for the subunit as follows:
Country | Base Unit | Subunit |
Malaysia | Ringgit | Sen |
United States | Dollar | Cent |
United Kingdom | Pound | Pence |
Company Name | GREEN PACKET BERHAD |
Stock Name | GPACKET |
Date Announced | 28 Feb 2020 |
Category | Financial Results |
Reference Number |
FRA-28022020-00007 |
Greenpacket made a loss of -0.29 sen
So there is no P/E
P/E means price earning
Since no Earning there is also no correct pricing of P/E for now
Many years ago in Kl during the Go Go years of the Asian Finacial Crisis I first heard about P/E
Not knowing what I asked Alfred Ong the Remisier
"What does P/E stands for"
Alfred replied "Punters' Expectation"
3. Let us Look into the Balance Sheet
Please go to both Redtone & Gpacket Latest Qtr report
Redtone
It has Rm225 millions in cash, receivables, contract assets & ppe
It has Rm109 millions in payables, contract liabilities & others (loan stocks have been converted to redtone shares
So it has 48% liability of Net Value
Redtone has Rm43 millions Cash
At 47 sen with NAV of 22.35 sen
Redtone is selling at 2.1 times book value
Dividend is 1 sen
Dividend for loan stock was 2.75% (Now fully converted. No further interest payment needed)
Gpacket
It has Rm579 millions in long term investment & receivables
It has Rm437 millions in long term borrowings & payables
So its borrowings are 75% of Value
Its Cash position is Rm39.9 Millions
NAV is 29 sen
At current closing price of Rm1.21
Gpacket is selling at 4.17 times book value
Dividend is nil
From these comparisons we can SEE that Redtone Balance Sheet is more sound than Green Packet
As such market has under priced Redtone while over chasing Gpacket
Of course Gpacket is launching some businesses that might generate lots of projected profits
That is yet to be seen
For now we SEE Redtone as Undervalue therefore worth considering
The motto of buy low and sell high can be applied to Redtone
For Gpacket it will be buy high and expect to sell higher
For Value Investor we always "buy low".
Best regards
Calvin Tan Research
Please buy or sell after doing your own due diligence. In doubt please consult your Remisier or Fund Manager
Created by calvintaneng | Aug 30, 2024
Created by calvintaneng | Aug 30, 2024
Created by calvintaneng | Aug 29, 2024
Created by calvintaneng | Aug 28, 2024
Created by calvintaneng | Aug 23, 2024
Created by calvintaneng | Aug 22, 2024
ahh cannot compare Apple with Orange.
GPacket working with Tencents , i see vast potential in Fintech services if hit jackpot ...the future .
What is your estimate of profits from NFCB for redtone , binacom etc..
my guess is a few millions . < 5 million a year .
2020-05-16 19:47
Gpacket up is due to different story..can not use NFCB as the reason for gpacket shoot up lately
2020-05-17 00:38
For Gpacket it has been spending lots of money marketing its services all over the place and making lots of noise and share prices pumped up.
It will take a very long time before it can settle its high debt and pay any decent dividend
For Redtone
it has paid 1 sen dividend
And for its loan stock it quietly pay 2.75% for 10 years already see
03-Feb-2020 25-Feb-2020 INTEREST Interest Payment 2.7500% Dividend Detail
04-Feb-2019 19-Feb-2019 INTEREST Loan Stock Interest 2.75% Dividend Detail
06-Feb-2018 20-Feb-2018 INTEREST Loan Stock Interest 2.75% Dividend Detail
03-Feb-2017 17-Feb-2017 INTEREST Loan Stock Interest 2.75% Dividend Detail
22-Jan-2016 10-Feb-2016 INTEREST Loan Stock Interest 2.7500% Dividend Detail
23-Jan-2015 09-Feb-2015 INTEREST Loan Stock Interest 2.75% Dividend Detail
27-Jan-2014 12-Feb-2014 INTEREST Loan Stock Interest 2.75% Dividend Detail
25-Jan-2013 13-Feb-2013 INTEREST Loan Stock Interest 2.75% Dividend Detail
26-Jan-2012 14-Feb-2012 INTEREST Loan Stock Interest 2.75% Dividend Detail
09-Feb-2011 22-Feb-2011 INTEREST Loan Stock Interest 2.75%
Now that loan stock fully matured & converted to mother share no more need to pay Redtone LB as it merged into Redtone mother
From now will Redtone pay more dividend?
If dividend increased from 1 sen to 2 sen then at 47 sen the yield is 4.25%
If dividend increased to 2.5 sen then the yield is 5.3%
And if Redtone increase dividend to 3 sen then the yield will be 6.3%
THIS WILL SET REDTONE APART AS A SUPERIOR COMPANY
2020-05-17 00:39
Redtone Flexicraft is the answer to MCO lock-down
Don't need to go visit showroom or show houses
They all come to you thru Flexicraft
see
https://www.redtone.com/virtualreality/
2020-05-17 15:41
Fkexicraft is applicable to all industries not just property
Hospital operation can be viewed
Supermarket food display can be surveyed
Tourist scenary could be captured
Highway can be mapped
All goods sold at lazada could be viewed. The shape and the sizes
Everything human eyes can see Flexicraft can bring all into view
This technology brings things near us from far and wide
NO need travel there
They are Brought to us at our convenience
This will help buyers or users to see first hand
Excellent technology
2020-05-18 10:38
Depeche
Now we know Gpacket rise is speculation play.
18/05/2020 1:42 PM
Depeche is correct!
Gpacket is 101% speculation and goreng to trap water fish, ikan bilis, sotong, sorchai and sardine
1.gpacket JV with tencent for digital banking yet unproven
Now with interest rate at multi year low of 2% and still going down how can bank make profit?
e-KYC already pioneered by Netx
Netx is only 1 sen with the news but gpacket limit up? Epay also pioneered by Netx only now gpacket trying to play catch up?
4g? Redtone also into 4g.
Even tencent with all the hooha only made extra 6% profit. Tencent got fierce competition from Alibaba
This gpacket is now at a most dangerous stage
They pushed up mother share to throw down gpacket warrant and unload them to suckers
Where is Mickey mouse Mikecyc?
You better go warn sorchai in gpacket forum and stop disturbing Netx people
2020-05-18 13:58
Lewis Lee
I like Chun Chun call Calvin Tan 's FA write up when he dug deep to analyse the account of the company !! Can't agree with you more !
2020-05-16 18:00