Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

A buy-side analyst with over 15 years of experience investing in Asian markets and specializing in the mid-small cap space, emphasizing value investing in companies with good free cash flows/dividends and long-term holding horizons. 
Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd. It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity, Bottom-up Analyst

Sitoy (1023 HK): Deep Value ~50% of Mkt in Cash, 4x PE and 12.5% Dividend Yield

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li>In the search for good value stocks to invest in for the long run, a good long-term ROIC is essential. It ascertains the moat or execution quality of the company. </li>
<li>Unfortunately, with a 5 Yr/10 Yr average ROIC of 4%/8%, the company did not satisfy all our criteria, yet the value seems appealing (66% of market cap cash, 8.8% yield).</li>
<li>The persistent structural challenges in H1 FY24 in the industry (resulting in the subpar ROIC) convince us that the stock is only a good trade, but long-term a value trap.</li>
</ul>


In the search for good value stocks to invest in for the long run, a good long-term ROIC is essential. It ascertains the moat or execution quality of the company. 
Unfortunately, with a 5 Yr/10 Yr average ROIC of 4%/8%, the company did not satisfy all our criteria, yet the value seems appealing (66% of market cap cash, 8.8% yield).
The persistent structural challenges in H1 FY24 in the industry (resulting in the subpar ROIC) convince us that the stock is only a good trade, but long-term a value trap.


Sitoy (1023 HK) Disappointing H1 FY24, 6x PE, 67% of Mkt Cap in Cash,~9% Div Yield: Good Trade

Sitoy Group Holdings

Sitoy (1023 HK) Disappointing H1 FY24, 6x PE, 67% of Mkt Cap in Cash,~9% Div Yield: Good Trade