Monday, May 8, 2017

Vicom - Q1 FY17 Results & My Thoughts

I used to update Vicom results on my spreadsheet until I got lazy last year after I divested the shares.

That's the problem when you have no vested interest in the company. You started losing track of its progress by simply flipping through the quarterly results but didn't really track at the numbers.

So here I am restarting my update to the numbers on my spreadsheet since I have the time to do so today.

Both revenue and profits continue to drop in this quarter by 4.9% and 6.4% year on year after management stated more deregistering to come in the next few quarters.

One thing which I think they have done quite impressive is to immediately bring down the salary related costs almost equally as the drop in the topline. I think this is a provision to the bonus they might be getting rather than a cut in headcount. The rest are pretty much standard.




In terms of balance sheet, cash continues to grow (almost sounds like a broken recorder by now) and latest it has broken the 60% level of the total asset. I think the fall this quarter has subsided (unlike in 2016 where EPS drops by double digit) and my take is they will probably maintain the dividend as last year given the huge amount of cash they have on their hand. The next quarter interim will show some guidance to it.




My Thoughts

There are not much guidance from the management as to how they are going to utilize the cash, nor anything much about the Setsco segmentation of the business. 

There are also no indication that they are going to raise the price of the testing so it looks like it'll be a pretty much muted year results for them in the next 9 months.

I'm still monitoring on this company and will probably check out the progress until there are further catalyst.

*Not vested as of writing


2 comments:

  1. You are great with words. I’m sure you worked really hard on this article, and it shows. I agree with a lot of your material. I enjoyed this and I will be back for more.

    Foreign Currency Exchange San Francisco

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  2. Vested. I agree with your assessment. Management gets an A on efficiency and cost management. However, in terms of growth mindset and innovation, they get a D. Sigh.

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