ECS Holdings

ECS Holdings

Postby millionairemind » Wed Nov 11, 2009 7:18 pm

November 11, 2009, 6.51 pm (Singapore time)

ECS' Q3 net profit up 36% on improved demand

By ANGELA TAN

ECS Holdings Limited, an info-comm technology (ICT) solutions provider, on Wednesday reported net profit for the third quarter ended September 30 rose 35.7 per cent to S$10.30 million as demand for its products and services improved.

Revenue grew 18 per cent to S$885.32 million, driven by its distribution and enterprise divisions.

In the distribution segment, demand for notebooks and desktops continued to rise, while in the enterprise systems segment, there was more corporate spending seen in enterprise servers.

Source: Business Times Singapore
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Re: ECS Holdings

Postby winston » Fri May 13, 2011 9:09 am

Not vested

Valuation/Recommendation

· Reiterate BUY and target price of S$1.18, pegged at 0.5x PEG, which implies 7.2x 2011F PE under our projected two-year EPS CAGR (2010-12F) of 14.3%.

Our target PEG multiple of 0.5x places ECS at a 16.7% discount to its peers’ average of 0.6x


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Re: ECS Holdings

Postby winston » Thu Jul 21, 2011 11:03 am

Not vested. Why would you buy an i-pad from ECS and not from the Apple Store ? I'm actually very impressed with the Apple Store at the IFC Mall Shanghai.

Why would you buy an i-phone from ECS and not from China Unicom and now, China Mobile ?

Singapore Hot Stocks-IT products distributor ECS up on strong Apple sales

SINGAPORE, July 21 (Reuters) - Shares of Singapore's ECS Holdings , which distributes iPads and iPhones in China, rose much as 2.7 percent on Thursday, extending gains from the previous session, on upbeat sentiment after Apple recorded blockbuster sales.

At 0244 GMT, ECS shares were up 2.1 percent at S$0.745 on a volume of 320,000 shares, around 1.8 times the average daily volume so far this year.

"Apple's results were great so counters with links to Apple are lifted," said a local trader.

Blockbuster sales of the iPhone and strong Asian business again helped Apple Inc crushed Wall Street's expectations, driving its shares up to a record high.

[ID:nN1E76I1K8] OCBC has initiated coverage of ECS with a buy rating and a target price of S$1.08, citing ECS' diverse product offerings, extensive distribution channels, as well as greater penetration in higher growth markets.

"We expect ECS's earnings momentum to gain traction moving forward, as it had recently clinched new distributorship agreements with Dell and also nationwide distribution rights for Apple's iPad and iPhone in China," OCBC said.

It added that ECS is set for a record year in its 2011 fiscal year, though the firm would have to depend on strong volume growth to improve profitability due to the thin margins in the distribution business.

Source: Reuters
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Re: ECS Holdings

Postby iam802 » Thu Jul 21, 2011 11:24 am

But, ECS is the distributor not retailer (slightly different, right).

ECS will handle all the channel distribution, inventory managmeent and probably demand forecast for AAPL in China.

Having said that, the question remains? Why buy ECS?
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Re: ECS Holdings

Postby winston » Thu Jul 21, 2011 11:30 am

Yes, my point is why would you buy from the retailer of ECS rather than direct from the Apple Store or China Mobile ?

Maybe they can distribute the i-pads in the smaller cities where there's no Apple Store.

Anyway, if I want to play this story, I would rather buy AAPL rather than ECS.
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Re: ECS Holdings

Postby cif5000 » Thu Jul 21, 2011 12:16 pm

The parent company (0856) owns almost 90%. Because of the limited free float, price can move very easily. Money is funneled out via dividend. Will be cheap and easy to delist ECS if it profitability runs way ahead of its share price.

Parent also listed another ECS last year in Bursa.

By comparison, apples to oranges, AAPL price is much more difficult to move.
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Re: ECS Holdings

Postby iam802 » Thu Jul 21, 2011 1:21 pm

cif5000 wrote:..

By comparison, apples to oranges, AAPL price is much more difficult to move.



Trying to understand this. I may have missed the point.

Why is it more difficult for AAPL price to move? It it because it cannot be manipulated?

My personal feel is, I have more control in AAPL. The liquidity, the possibility of options, the product launch timeline and even the the-day-Steve-Jobs-quits all contributes to 'movement' in AAPL.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
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Re: ECS Holdings

Postby cif5000 » Thu Jul 21, 2011 10:27 pm

Eh?? I thought I wrote in the previous paragraph that ECS has a very small free float? Not that AAPL by itself is difficult to move but when compared to ECS...like Newton's relativity theory right?
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Re: ECS Holdings

Postby iam802 » Thu Jul 21, 2011 10:28 pm

....selecting reading on my part. :(

I glance through lots of posts and tends to miss out lots of key points.

my apologies.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
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Re: ECS Holdings

Postby cif5000 » Thu Oct 13, 2011 12:28 pm

Anyone interested in ECS or VST (0856)? The parent shot up more than 30% this morning. Current price at $1.17. Is this a breakout?

Just some days back VST was available at less than $0.70. At that price, it was valuing its 89.66% stake in ECS for $0.44 per share with the remaining of the VST distribution business at zero. Remember that VST bought ECS for $0.668 a few years back when iPad was not yet invented. Temasek had a stake in ECS before that.

I thought VST was way oversold. VST doesn't pay dividend and the chairman was fighting a market manipulation charge. Nevertheless, the trading opportunity was superb.
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