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1. IDLC Investments - Company Insight
Singer Bangladesh Limited
July 24, 2014
Terminologies
Free Float : % of total shares not owned by Sponsors/ Directors, and Govt.
Forward PE: Based on Annualized Earnings of the latest declared quarter
Trailing PE: Based on Latest 12 Months Earnings
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Company Profile
Singer Bangladesh Limited (DSE: SINGERBD) was incorporated in 1979, as a private limited company. Subsequently, in 1983, it was converted into a public limited company. Since 2003, the company is a direct subsidiary of The Singer Bhold BV, The Netherlands. It was listed with DSE in 1983 and with CSE in 2001. 75% of total shares of SINGERBD are held by its sponsors.
Over its more than 100 years of business, the company has successfully transformed into one of the largest retailers of consumer durables and electronic products. Besides marketing its own brands, singer also markets a few other international brands like Whirlpool, Videocon, Onida etc.
Key Revenue Drivers & Company Insight
Currently, SINGERBD manufactures Color Television, Panel Television, Motorcycle, Cables and Furniture. The company utilized 95%, 33%, 2%, 1%, and 7% of respective product line. Production fell in all five major product lines except Furniture, due to stiff competition from local competitors and nationwide shutdown in last quarter of 2013.
The company markets a wide array of products, among which Refrigerator and Television contributes significant portion of revenue. They each contributed 58% and 19%, respectively of total turnover of the company, in 2013. The new addition Furniture line contributed only around 0.12%, but is expected to pickup in future.
Financial Performance
Financial performance suffered severely in last year. Compared to a 1% decline in sales, Net Profit after Tax dropped by 22%. Increased cost of business, due to political turmoil in last quarter of 2013, hit Operating Margin significantly, dragging down overall profit.
In addition, 6M 2014 performance remained downbeat, as well. Despite 19% growth in top line, bottom line reduced by 7%, due to higher cost of production.
Recently, the company has reported net profit after tax of BDT 192.78 million with EPS of BDT 3.14 for the period of six months (Jan' 14 to Jun' 14) as against BDT 208.12 million and BDT 3.39 respectively for the same period of the previous year.
Singer Bangledesh Limited (DSE: SINGERBD)
Current Price (July 24, 2014 ) 182.30
Total Number of Share (mn) 61.36
Free Float (%) 25%
Forward PE * –SINGERBD 29.01x
Trailing PE * – SINGERBD 30.49x
Forward PE – Engineering sector 23.23x
*Based on latest earning disclosure Financials (BDT mn) 2012 2013 6M, 2014** (Unaudited)
Turnover
6,703
6,605
3,305
Gross Profit
1,810
1,785
867
Operating Profit
762
586
277
Net Profit after Tax
490
382
193
Total Asset
4,493
4,236
5,046
Total Equity
2,540
2,633
2,337
**Year ends on Dec. 31 Growth (%) 2012 2013 6M, 2014
Turnover
23%
-1%
19%
Net Profit After Tax
23%
-22%
-7%
Financials (BDT mn) 2012 2013 6M, 2014
Restated EPS
7.99
6.23
3.14
BVPS
41.39
42.91
38.09
Others 2012 2013 6M, 2014
Gross Profit Margin
27%
27%
26%
Operating profit margin
11%
9%
8%
Net profit margin
7%
6%
6%
ROA
12%
9%
4%
ROE
21%
15%
8%
Stock Dividend
25%
25%
-
Cash Dividend
75%
100%
-
Source: DSE; Quarterly & Annual Reports of Singer Bangladesh Limited. and Research, IDLC Investments Ltd.