Captii (AWV.SI) - 3Q Results 2019 Update

Captii (AWV.SI) - 3Q Results 2019 Update

It's been a couple of boring years with this stock. Since my last write up here the stock has been slowly going down in price, though only very gradually and on very very small volume. This is consistent with its poorer results these past couple years and cut in dividend.

In any case, at a price of sub 40c, the valuation on this micro-cap is still looking quite good.

Let's have a closer look at the financials in simple Blue Fund style :

Market cap : ~12 million
NAV : $1.36 (up from 1.01 couple years back)
Price : $0.38(72% discount to NAV)
Net cash :  6m (previously 13.45 million)
Dividend yield : ~3.3% (based on 1.25cents, down from 2cent year before)
Earnings : already 8c+ (likely to hit 10c+ for FY results)

From the current numbers, even with the drop in share price, Captii does not really seem anymore attractive than before.  Since 2016 Captii has put on some debt, all of it short term at 1.5m. This has cut into the net cash pile which is now only 6m, half of what it was before. Having said that its still half of market cap, quite a significant chunk. The drop in dividend by half also means the yield is nothing to be excited about at 3.3%.

Positives is the NAV has risen to 1.36m, though a big portion, about a third is in intangibles and other financial assets. Captii's business also looks to be rather resilient in face of slowing global economy and trade tensions and most importantly still very profitable with high margins. It will be important to monitor losses from its venture investments though as these can result in bad results for the company despite a solid core business.

Will probably watch and wait a bit more to see what happens with the dividend payout in Q2 next year. Definitely worth accumulating more if management restores the 2.5c payout again. Captii is easily able to afford to pay that with the earnings of 8c+ its already made so far.

[author holds shares in this company]

Captii (AWV.SI) - 3Q Results 2016 Update

Captii (AWV.SI) - 3Q Results 2016 Update

As the year end earnings season comes around, I will be updating results from companies I am keeping track of with a quick and short summary. Let's start off this season with Captii (AWV.SI)

To be fair, it has been a challenging year for Captii. But this is to be expected given that the global economy has not been doing that well and Singapore has been hit quite badly by the collapse of the OnG and Shipping industries.

The good news is Captii still remains pretty profitable, making 1.25c of EPS this quarter and 5.05c for 9m of this year. This means the dividend payout next quarter of 2.5c is more than safely in the bag, providing a dividend yield of 5.38% @ $0.465 price today. Though net cash has decreased due to capex this quarter, it still remains at a high 75% of market cap and Captii remains debt free.

Of note is that trade receivables has increased to over 9m from 6m last quarter. Whilst it is a recent high, this was also observed in 2014 and it is likely Captii will get a lumpy payment in the next quarter or so.

Captii - Capturing the alluring value

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]