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ZGL - Zicom Group

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countryboy

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Recently bought this one .
was recommended by the Australian Financial review as one to watch in 2008

The company specializes in hydraulic, flow control & precision engineering, manufacturing deck machinery, oil & gas regulating equipment, concrete mixers, foundation equipment, precision automation equipment & sales of hydraulic drives & engineering services for the offshore marine, oil & gas, construction, pharmaceutical, semi-conductor, biomedical industries,industrial & mobile equipment industry.

Ill update more..their website is not that flash
presently 30c after big dive. Dividend of 4c paid end of March
 
I have been following Zicom for some time now. Showing some really positive signs as regards revenues and profit.

The dividend that was paid end of March was 0.4c per share not 4.0c per share.

Cheers.
 
yep dividend 0.4

Directors continue to buy up own stock, list of recent announcements:

28/04/2008 Change of Director's Interest Notice - GL Sim Correction
28/04/2008 Change of Director's Interest Notice - B H Cheak
21/04/2008 Change of Director's Interest Notice - I R Millard
21/04/2008 Change in substantial holding - G L Sim
21/04/2008 Change of Director's Interest Notice - GL Sim
15/04/2008 Change of Director's Interest Notice - G L Sim
15/04/2008 Change in substantial holding - G L Sim
15/04/2008 Change in substantial holding - SNS Holdings
14/04/2008 Change of Director's Interest Notice - B H Cheak Amendment
14/04/2008 Change of Director's Interest Notice

Sign of confidence or they know a bargain!
 
and a wee bit more from 1/2 yearly Dec 31st 07

EBITA- UP 34%
NPAT- UP 37%
Adjusted net profit after tax up 76%

revenues of 60 million and growing

list of directors activities in only 1/2 of it
 
The Group is pleased to advise that total secured orders received up to 31 March 2008 during this financial year amounted to S$198.7m, an increase of S$39.7m over the total orders received up to 31.12.07.
A break-down of the total orders received is as follows :-
S$m

Offshore Marine, Oil & Gas 130.0
Construction 52.6
Precision Engineering & Automation 12.3
Industrial & Mobile Equipment 3.8 S$ 198.7 m

Out of the above total orders S$86.4m are scheduled for delivery in the financial years 2009 and 2010.

The Group’s forward orders remain robust. The impact of the sub-prime financial crisis has, so far, very little impact on our business prospects.

We expect the results of the company for the financial year to reflect the level of orders received.

Reported today in Singapore dollars. can now enter sub 30c on todays share price.:cool:
 
from recent announcement:

Zicom Group Limited ABN 62 009 816 871

BUSINESS DEVELOPMENTS
The Group is pleased to announce the following recent business developments :-
Australia
New Premises
Cesco Australia Limited (CAL) has signed a 7 year tenancy agreement for new premises at 38 Goodman Place, Murarrie, Queensland, and plans to move into the premises by 31 May 2008. The assembly and servicing activities of the company, which are currently housed in two separate premises, will now be consolidated under the same premises.
In July 2007, CAL entered into an agreement to lease a new factory from Viking Limited at Anton Road, Hemmant. However, up to now, the Owner has still not been able to obtain local council’s approval.

Singapore
New Factory – Deck Machinery
The new factory of Zicom Holdings Pte Ltd (ZHPL) for the production of heavy duty deck machinery in Singapore has been completed and production has already commenced in this factory. The factory is intended to expand the group’s capacity and improve productivity in the production of heavy duty deck machinery. The factory also houses a new in-house training centre that aims to give continuous structured training to its technical and management personnel as part of the group human resource development
programs.
New Expanded Premises – Precision Engineering Sysmac Automation Engineering Pte Ltd (SAE) has signed a lease for new premises doubling its existing production capacity. SAE plans to move to these new premises in July 2008. The new expanded premises position SAE to undertake more and bigger turnkey automation projects which its existing premises are unable to accommodate.

Thailand
Zicom Cesco Engineering Co Ltd, a wholly owned subsidiary of ZHPL, a Thai Board of Investment approved project, has recently awarded contracts for the construction of its factory in Thailand. The factory, on a freehold site of 20,000m2, is planned as a group’s manufacturing hub for its concrete mixers. Construction of the factory is planned to commence this month and is expected to be completed within 8 months.
G L Sim
Chairman

this company is well positioned to take advantage of Asian low costs to provide for a growing asia. Long term hold
 
I bought some shares in ZGL after looking around for some cheap "pick and shovel" sellers. Fundamentals look good, with directors owning a large chunk of shares and buying more. Bought in at about 27 cents down to 25.5 cents, curse my impatience :banghead:.

Earnings look to grow though, should be a good bottom drawer stock. :rolleyes:
 
I've been accumulating these lately, however a bit amazed the sp is still so depressed. They have great growth prospects, and forward orders. I think the one thing that is keeping the price low is the strong aussie dollar!
 
RE: Resource Boom

ZGL seems good value, manufactoring mining equipment and the like. I personally dont think that the aussie dollar is that strong compared to any currency besides the US. The US having been printing off money to help it service its debt, so its performing pretty poorly. Perhaps the cancellation of the secondary listing in singapore has been negatively influencing the SP.

Link to ZGL, scroll down to look at the news about singapore listing:
http://www.asx.com.au/asx/research/...s.jsp?searchBy=asxCode&allinfo=on&asxCode=ZGL

Always DYOR
 
Thought about that, maybe thats a contributor too.
Maybe I'm just seeing the glass as half full, but was thinking its probably a better thing to delay, as if they issue shares at a depressed price it means more dilution. And they claim to have sufficient funds and debt to cover growth.
 
Perhaps Resource.

That they do indeed have enough cash and debt servicing facilities to pay for their growth, as I favor companies that don't overly dilute the share price to pay for "growth" (when the amounts of shares issued outpaces the increase in growth).

Cash in hand is 15.82 million, so probably a listing would help, but is not nessecary for growth. Well Im hoping anyway.

Source:
http://imagesignal.comsec.com.au/asxdata/20080225/pdf/00815797.pdf
 
I'm hoping with you mate ;)

Yep, that was SGD$15.82M.

and the same report states the group has committed a total of SGD$13.3 in capex, (50% debt financed) and they will still have plenty of cash rolling in, whilst that capex is spread over a number of months.

Jochi said:
Cash in hand is 15.82 million, so probably a listing
would help, but is not nessecary for growth. Well Im hoping anyway.
Click to expand...
 
Lots to like about this company. A good portion of its business done in Asia which could really take off as asia continues to devlop. Also allows them to take advantage of currency movements and source capital (not that they need it) at better rates.

Not a speccy..solid company building a platform on growth.
 
I agree countryboy

Just waiting for some financial results which should push the share price up, until then Ill be buying a few when I can, great value. :)
 
quiet on the ZGL thread ;)

well the currency factors seem to be in ZGL's favour now with just about parity between SGD and AUS $

directors still buying up big time!!
 
new 12 mth high reached with no news to speak of from the company. I thinks 33c could be close to its peak. "staying the course" was the theme from the GM in yearly books which outlined how they survived the recent turmoil.Im interested to see if the next report has anything to substant:)iate the recent spike
 
working back from recent yearly lows via a share buyback. not a lot of shares to play with and the management team want to buy 20 million

to increase the shareprice i would increase the divy!

liquidity issues with the number of shares out in the market for sale could push this stock in any direction after completion of the share buy back.
one director owns a substantial amount of this company so unless he his selling there wont be many shares to sell

this will be a very long term hold for me..low entry price, manufacturing base in asia, pays a div (small) and potential for growth:)
 
we are some way into the share buy back and the share price still hovers around 21c
few things that may help or worth considering:

1 ASX and singapore stock exchanges combining - may increase SP if rules allow Australian traders to invest in the asia and vica versa. This stock does most of its business out of singapore which would help of Oz investors if they were able to spend cash easily in both stock exchanges

2 management buy out - they already own 70-80 % and using Zicom money reduces this to a level where they could borrow a small amount to mop up remaining shares and use future profits to pay for this cost

Only my thoughts. still a great stock to be in.
 
First a correction
management own around 40 % not the 80% I mentioned

Today a profit upgrade announced and ZGL bolted from 21.5c to 30 c plus. This is the way to move the share price ! the group has its finger in a number of industries so it will be great to see where the profit is coming from.:D
 
the surge continues. hitting 45 cents today. Volume probably helped ny Venetrade reducing its position. recent aquisition really wasnt that mind blowing , so recent run could be more hype than substance.
Past high of 60c could be tested if divy is pushed up
 
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