Captii (AWV.SI)- Capturing the alluring value
Captii is a tiny little micro cap which has been listed since 2004 post tech crash and at the beginning of the now quickly maturing mobile phone era. Current share price is $0.46
The usual background story from SGX
[Captii Limited, an investment holding company, operates in the technology and telecommunications businesses in south east Asia, south Asia, the Middle East, Africa, and internationally. It operates through VAS, TECH, OSS, and OHQ segments. The company offers telecommunications, technology, and customized solutions for telecommunications operators, service providers, and enterprises; and research and development, software engineering, system integration, project management, and maintenance and support services for the telecommunications industry. The company also offers global roaming quality and service management solutions; and mobile messaging and signaling, value-added-services, and mobile network operation support systems, solutions, and managed services. In addition, it distributes third party telecommunications products and components, as well as engages in the property investment activities. The company was formerly known as Unified Communications Holdings Limited and changed its name to Captii Limited in May 2014. Captii Limited was founded in 1998 and is based in Singapore. Captii Limited operates as a subsidiary of Worldwide Matrix Sdn Bhd.]
Long story short, Captii makes money from major local telcos in Singapore such as Singtel/Starhub/M1 and Maxis/Digi in Malaysia and is owned by a Chinese Malaysian boss.
Chanced upon it before the recent 10 to 1 consolidation which would translate to a stock price of $0.585 today. At that time, I had only put it on my radar as the dividend yield was low even though other value indicators were pretty good. Since then, the stock has slid to $0.46 and the yearly dividend has been increased to 2.5c.
Let's look at some current valuations in simple BlueFund fashion.
Market cap : 15 million
NAV : $1.01
Price : $0.46 (54% discount to NAV)
Net cash : 13.45 million (91.49% of Market Cap)
Dividend yield : 5.43% (based on 2.5cents, up from 2cent year before)
Historically, they have been consistently turning in profit for quite a few years now. The major shareholder and founder of the company is also still at the helm and doesn't pay himself ridiculously, so that's pretty good for OPMI friendliness and with the increased div now, company is starting to pay out more of their profits. Guess they have no choice, cash is piling up faster than they can distribute. Boss also owns 76.89% of the company which means a possible privatisation could be in the books. Captii could be another takeover target from an overseas tech company as well.
To note, the stock has been trading sideways the past 8 years and in fact has not traded upwards much since its big fall in 2004 from $6 after IPO to below $1 a year later and even as low as 15cents during GFC 2009, so it could be a value trap. But it is now trading at almost cash value and with likely further increases in dividends and yield, this could very well be a BUY in my books pretty soon, once yield goes up a bit more. That is if anyone wants to sell.
[author holds shares in this company]
