Vicom: Company Profile & Business Model

VICOM Ltd is Singapore's leading provider in technical testing and inspection services. A pioneer in vehicle inspection, The VICOM Group is a subsidiary of ComfortDelGro Corporation Limited, the world's 2nd largest transport company. It comprises VICOM and JIC Inspection Centres and SETSCO Services. These centres are all located at convenient locations throughout Singapore.

Recognised for our service quality and efficient business practices, our expertise has also extended abroad to countries in Asia and the Middle East. As early as 1985, we were consultant/adviser to OMACO of Saudi Arabia and helped set up inspection centres there. In 1995, we offered consultancy services to MCM (Malaysia) and also Bangladesh. In 2003, we were jointly involved with ATB Services in the vehicle inspection project for Land Transport Department of Brunei.

Corporate Development

Vicom is performing in various business segment and had a vast business expansion plans like:-

• Chemicals
• Calibration & Measurement
• Consumer Goods
• Construction
• Electrical & Electronics
• Environment
• Food & Biology
• Industrial & Manufacturing
• Medical & Pharmaceutical
• Oil & Gas, Petrochemical

Profit & Loss	Q1 FY 2014	Q1 FY 2013	Growth %
Revenue	26,897	26,03	3.31%
Profit Before Tax	9,669	9,144	5.74%
Profit Attributable To Shareholders	8,013	7,463	7.37%

As compare to the other counter in the sector the Tritech is giving good return than any other counter on annual term and is at a right price to enter in the counter.

Reading into Vicom Annual Report

Total Equity increased by $8.1 million to $138.2 million as at 31 March 2014 due mainly to profits generated from operations, partially offset by dividend payment to non controlling interests.

Total Assets increased by $6.1 million to $164.5 million as at 31 March 2014 due to the increase in Current Assets by $6.2 million. Total Liabilities decreased by $2.0 million to $26.3 million as at 31 March 2014 due mainly to the payment of variable bonus in March 2014

The net cash inflow in the quarter was $6.4 million.

Fundamentals Analysis

Fundamentals	Values
EPS (S$)	0.321
PE	18.37
Dividend (S$)	0.16
Dividend Yield(%)	2.72
NAV(SGD)	1.55
Market Cap	522.82
Issued & Paid-up Shares	88,614,000
Price / NAV	3.08

Revenue

The Group’s total revenue was $26.9 million for 1Q14 was $0.9 million or 3.3% higher than 1Q13, contributed by higher business volume.

Operating Expenses

The Group’s operating expenses were of $17.4 million for 1Q14 was $0.4 million or 2.3% higher than 1Q13 due mainly to the higher expenses needed to generate the increased revenue.

Operating Profit

Consequently, the Group’s operating profit of $9.5 million for 1Q14 was $0.5 million or 5.2% higher than 1Q13. The Group’s profit before tax of $9.7 million for 1Q14 was $0.5 million or 5.7% higher than 1Q13.

The Group’s Profit attributable to Shareholders of the Company of $8.0 million for 1Q14 was $0.6 million or 7.4% higher than 1Q13

As per the return on the investment and security, Vicom is a good counter to hold for 6 or 12 months to 18 months.

Comparison of Vicom & transport sector.

Return	PE	Rolling PE	Price / NAV	Dividend Yield (%)
Vicom	18.378	18.030	3.8060	2.725
TRANSPORT Sector	24.968	25.212	1.5540	3.033

Technical Analysis

Currently the counter is trading in a very range bound phase and had bounded itself into very close Support of 5.8 and Resistance of 5.9 else the tec. Indicator RSI is above the centre line @76.90, is about to go in overbought condition. CCI is @67.17. we can expect the counter to take a up move and break the resistance in coming sessions.

#Bullish Consolidate

After having a detail study on the Vicom the counter is in consolidate up side phase. But overall the counter (Technically & Fundamentally) is in a bullish trend and is good to hold for a long term.