A-Smart in Focus
(2017-08-21) close: S$0.695
Mean Target price: No research houses covering A-Smart. No consensus estimates is available
1. Sector: Print Management
2. Core business structure: Time-sensitive financial printing, conceptualisation, design, copywriting, translation, typesetting, colour proofing, printing, post-press packaging, global distribution and delivery.
3. Segment that generates the highest revenue: Print media
4. Countries that the business operates: China and Hong Kong, Singapore, Malaysia
5. Challenges: Operating deficit of S$1.4 million experienced by their dissociated firms and accompanying loss incurred by them.
6. Strengths: The group restructured their overall operations and management to stay agile and cost-efficient.
7. Significant events: Taking out of investments from the Group’s loss making subsidiaries in Hong Kong, China and Malaysia, undergoing corporate restructuring and cost control, and changing their traditional print business model to a technological and IT one.
9. Alp Conclusion:
A-Smart seemed to take a hit from poor investment decisions made by their affiliated subsidiary companies in recent years. However, A-Smart has taken steps to cut those losses by annexing those companies. Unfortunately, the further costs incurred in their annexing probably contributed to their declining gross profit in 2016. With their new focus on IT based printing services and company restructuring, A-Smart is hopeful that it can turn itself around in the subsequent fiscal years to come.
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