Singapore Stock Market News

Serial System Limited - Billion dollar dream

StockFanatic
Publish date: Mon, 15 Sep 2014, 12:13 PM
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In the past few years, Serial's net profit was negatively affected by its investment in resources for business expansion. Management's new cost efficiency measures are producing encouraging results. Given its extensive Asia-Pacific distribution network, Serial could appear on competitors' M&A radar once revenue reaches the US$1bn mark.

We estimate Serial's fair value at 21.3 Scts (based on consensus CY15 EPS of 2.5 Scts) and 8.5x CY15 P/E (its 4-year historical average forward P/E). The stock's re-rating catalysts include potential M&As and faster-than-expected earnings contribution from newly-acquired companies.
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