Buy Or Sell Opportunity • May 14
Now 20% undervalued Over the last 90 days, the stock has risen 12% to S$2.67. The fair value is estimated to be S$3.34, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Apr 14
Full year 2025 earnings released: S$0.035 loss per share (vs S$0.32 profit in FY 2024) Full year 2025 results: S$0.035 loss per share (down from S$0.32 profit in FY 2024). Revenue: S$1.52b (down 4.3% from FY 2024). Net loss: S$3.19m (down 111% from profit in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. Announcement • Apr 09
Avarga Limited, Annual General Meeting, Apr 24, 2026 Avarga Limited, Annual General Meeting, Apr 24, 2026, at 14:30 Singapore Standard Time. Location: drama centre function room 2, 100 victoria street, national library level 3, singapore 188061, Singapore Reported Earnings • Mar 03
Full year 2025 earnings released: S$0.035 loss per share (vs S$0.21 profit in FY 2024) Full year 2025 results: S$0.035 loss per share (down from S$0.21 profit in FY 2024). Revenue: S$1.52b (down 5.9% from FY 2024). Net loss: S$3.19m (down 117% from profit in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. New Risk • Feb 25
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 215% Earnings have declined by 31% per year over the past 5 years. Minor Risk Latest financial reports are more than 6 months old (reported June 2025 fiscal period end). New Risk • Aug 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Singaporean stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 429% Earnings have declined by 31% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (13% average weekly change). New Risk • Aug 12
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. Cash payout ratio: 429% Dividend yield: 74% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 429% Earnings have declined by 31% per year over the past 5 years. Reported Earnings • Aug 10
First half 2025 earnings released: S$0.048 loss per share (vs S$0.17 profit in 1H 2024) First half 2025 results: S$0.048 loss per share (down from S$0.17 profit in 1H 2024). Revenue: S$787.2m (down 5.0% from 1H 2024). Net loss: S$4.33m (down 128% from profit in 1H 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • May 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to S$2.75, the stock trades at a trailing P/E ratio of 13.1x. Average trailing P/E is 18x in the Forestry industry in Asia. Total returns to shareholders of 20% over the past three years. New Risk • May 21
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: S$22.3m (US$17.3m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 18% per year over the past 5 years. Minor Risk Market cap is less than US$100m (S$22.3m market cap, or US$17.3m). Reported Earnings • Apr 12
Full year 2024 earnings released: EPS: S$0.021 (vs S$0.024 in FY 2023) Full year 2024 results: EPS: S$0.021 (down from S$0.024 in FY 2023). Revenue: S$1.62b (down 4.3% from FY 2023). Net income: S$19.1m (down 12% from FY 2023). Profit margin: 1.2% (down from 1.3% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Apr 10
Avarga Limited, Annual General Meeting, Apr 25, 2025 Avarga Limited, Annual General Meeting, Apr 25, 2025, at 13:30 Singapore Standard Time. Location: drama centre function room 2, 100 victoria street, national library level 3, singapore 188061, Singapore Reported Earnings • Mar 01
Full year 2024 earnings released: EPS: S$0.021 (vs S$0.012 in FY 2023) Full year 2024 results: EPS: S$0.021 (up from S$0.012 in FY 2023). Revenue: S$1.62b (down 4.7% from FY 2023). Net income: S$19.1m (up 75% from FY 2023). Profit margin: 1.2% (up from 0.6% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. New Risk • Feb 28
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 10% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Share price has been volatile over the past 3 months (8.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). New Risk • Dec 31
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Singaporean stocks, typically moving 7.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 10% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Significant insider selling over the past 3 months (S$46m sold). Recent Insider Transactions • Nov 15
Executive Chairman recently bought S$46m worth of stock On the 11th of November, Kooi Tong bought around 183m shares on-market at roughly S$0.25 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. Kooi has been a buyer over the last 12 months, purchasing a net total of S$46m worth in shares. Reported Earnings • Aug 15
First half 2024 earnings released: EPS: S$0.017 (vs S$0.019 in 1H 2023) First half 2024 results: EPS: S$0.017 (down from S$0.019 in 1H 2023). Revenue: S$828.4m (down 3.7% from 1H 2023). Net income: S$15.7m (down 11% from 1H 2023). Profit margin: 1.9% (down from 2.0% in 1H 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 56 percentage points per year, which is a significant difference in performance. New Risk • Aug 13
New major risk - Revenue and earnings growth Earnings have declined by 9.9% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 9.9% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Announcement • Apr 19
Avarga Limited Announces Retirement of Chan Lay Hoon as Non-Independent Non-Executive Director Avarga Limited announced that Chan Lay Hoon has retired as Non-Independent Non-Executive Director of the Company, effective at the conclusion of the Annual General Meeting held on 18 April 2024 and she did not seek re-election. Other DirectorShips Past is KL Health Pte. Ltd, Kestrel Capital Pte. Ltd., McLaren Applied Technologies Pte. Ltd., McLaren Automotive Asia Pte. Ltd, McLaren Group Limited, Meriton Capital Limited, Meriton Holdings Limited, RSP Architects Planners & Engineers (Pte) Ltd, RSP Design Consultants (India) Pvt Ltd, RSP Holdings Pte Ltd, RSP TopCo Pte. Ltd., Sephia Pte. Ltd., Squire Mech Private Limited, SPP Innovations Pte Ltd, Towerhill Pte. Ltd. Other DirectorShips Present is Double Click Pte Ltd, GG Collections Private Limited, Kestrel Investments Pte. Ltd., Plano Pte. Ltd., Project 92 Limited, Rowsley Hospitality Holdings Pte. Ltd., Rowsley (HFM) Pte. Ltd., Singapore Olympic Foundation, Tenion Pte. Ltd., Venture India Pte. Ltd., Wellington College International Regional Management Pte. Ltd., Valencia Club de Futbol S.A.D., Litoral del Este, S.L.U., Tiendas Oficiales VCF S.L.U., Fundacion Valendia Club de Futbol de la C.V., Valencia Feminas Club de Futbol. New Risk • Feb 27
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 28% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). New Risk • Feb 26
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.5% Last year net profit margin: 2.1% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. This is currently the only risk that has been identified for the company. Announcement • Feb 24
Avarga Limited, Annual General Meeting, May 02, 2024 Avarga Limited, Annual General Meeting, May 02, 2024. Announcement • Dec 28
Avarga Limited Announces the Appointment of Kevin Kang Kah Wee as Director, Member of Audit and Risk Management Committee; and Nominating Committee Avarga Limited announced the appointment of Kevin Kang Kah Wee ("Mr Kevin Kang") as Director of the Company. Role And Responsibilities: Non-Executive, Job Title: Member of Audit and Risk Management Committee; and Nominating Committee. Working Experience: Year 2018 - Present CEO, HThree City Australia Pte. Ltd. Year 2009 - Year 2018 Deputy CEO, TrustCapital Advisors Investment Management Pte. Ltd. Professional Qualifications: Bachelor of Commerce (University of Melbourne, Australia) Master of Business Administration (MBA) (Melbourne Business School) Member of the Institute of Chartered Accountants (Australia). Recent Insider Transactions • Dec 06
Executive Chairman recently bought S$450k worth of stock On the 1st of December, Kooi Tong bought around 3m shares on-market at roughly S$0.17 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Kooi has been a buyer over the last 12 months, purchasing a net total of S$491k worth in shares. Reported Earnings • Aug 14
First half 2023 earnings released: EPS: S$0.021 (vs S$0.048 in 1H 2022) First half 2023 results: EPS: S$0.021 (down from S$0.048 in 1H 2022). Revenue: S$864.7m (down 37% from 1H 2022). Net income: S$19.0m (down 56% from 1H 2022). Profit margin: 2.2% (down from 3.1% in 1H 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Board Change • Jul 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. Independent Director Andrew Lim was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 14
Full year 2022 earnings released: EPS: S$0.056 (vs S$0.08 in FY 2021) Full year 2022 results: EPS: S$0.056 (down from S$0.08 in FY 2021). Revenue: S$2.37b (down 2.8% from FY 2021). Net income: S$50.9m (down 31% from FY 2021). Profit margin: 2.1% (down from 3.0% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 17% per year. Reported Earnings • Feb 25
Full year 2022 earnings released: EPS: S$0.056 (vs S$0.08 in FY 2021) Full year 2022 results: EPS: S$0.056 (down from S$0.08 in FY 2021). Revenue: S$2.37b (down 2.8% from FY 2021). Net income: S$50.9m (down 31% from FY 2021). Profit margin: 2.1% (down from 3.0% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 15% per year. Board Change • Dec 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. Independent Director Gabriel Moey was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 14
First half 2022 earnings released First half 2022 results: Revenue: (down 100% from 1H 2021). Net income: (down S$71.8m from profit in 1H 2021). Profit margin: (down from 5.0% in 1H 2021). The decrease in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Jun 18
Avarga Limited Announces Resignation of Lim Sim Ving as Company Secretary The board of directors of Avarga Limited announced the resignation of Ms. Lim Sim Ving as secretary of the Company with immediate effect. Ms. Cheok Hui Yee will remain the secretary of the Company. Reported Earnings • Apr 17
Full year 2021 earnings released: EPS: S$0.08 (vs S$0.058 in FY 2020) Full year 2021 results: EPS: S$0.08 (up from S$0.058 in FY 2020). Revenue: S$2.44b (up 44% from FY 2020). Net income: S$73.3m (up 34% from FY 2020). Profit margin: 3.0% (down from 3.2% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Apr 14
Avarga Limited, Annual General Meeting, Apr 29, 2022 Avarga Limited, Annual General Meeting, Apr 29, 2022, at 14:30 Singapore Standard Time. Agenda: To receive and adopt the Directors' Statement and Audited Financial Statements of the Company for the financial year ended 31 December 2021 together with the auditors' report thereon; to approve the payment of Directors' fees of up to S$500,000 payable by the Company for the financial year ending 31 December 2022; to re-elect Ms. Ng Shin Ein, retiring pursuant to Regulation 103 of the constitution of the Company; to re-elect Mr. Loh Chen Peng, retiring pursuant to Regulation 103 of the constitution of the Company; to re-appoint Messrs Nexia TS Public Accounting Corporation as Auditors of the Company and to authorise the Directors to fix their remuneration; to transact any other ordinary business which may be transacted at an annual general meeting. Reported Earnings • Feb 27
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: S$0.08 (up from S$0.058 in FY 2020). Revenue: S$2.44b (up 44% from FY 2020). Net income: S$73.3m (up 34% from FY 2020). Profit margin: 3.0% (down from 3.2% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Feb 26
Avarga Limited Decides Not to Declare Final Dividend for the Financial Year Ended 31 December 2021 The board of directors of Avarga Limited (the Company) (the 'Board') referred to the announcements made on 25 June 2020 and 27 February 2021 in connection with the adoption and subsequent revision of the Dividend Policy ('Dividend Policy'). Unless otherwise defined herein, all capitalised terms. The Board has decided not to declare a final dividend for the financial year ended 31 December 2021 ('FY2021'). For FY2021, the company had earlier paid total interim dividends of SGD 0.0084 (0.84 Singapore cent) per share, with a total dividend payment of SGD 7.676 million. Reported Earnings • Aug 18
First half 2021 earnings released: EPS S$0.077 (vs S$0.016 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: S$1.44b (up 100% from 1H 2020). Net income: S$71.8m (up 381% from 1H 2020). Profit margin: 5.0% (up from 2.1% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • May 19
Avarga Limited Approves Final Dividend for the Year 31 December 2020 Avarga Limited announced that its AGM held on 23 April 2021, it has approved the payment of final dividend of 0.78 cent per share for the financial year Ended 31 December 2020. Recent Insider Transactions • May 12
Insider recently sold S$319k worth of stock On the 7th of May, Eng Hock Joseph Lim sold around 1m shares on-market at roughly S$0.30 per share. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought S$689k more than they sold in the last 12 months. Announcement • May 08
Avarga Limited Announces First Interim Dividend for the First Quarter Ending 31 December 2021, Payable on 18 June 2021 Avarga Limited announced interim dividend of SGD 0.0042 per ordinary share for the first quarter of the financial year ending 31 December 2021 (the "First Interim Dividend"). The First Interim Dividend will be paid on 18 June 2021. Duly completed registrable transfers of shares received by the Company's Share Registrar, M & C Services Private Limited at 112 Robinson Road #05-01 Singapore 068902 up to the close of business at 5:00 p.m. on 31 May 2021 will be registered to determine shareholders' entitlements to the First Interim Dividend. The Register of Members and Share Transfer Books of the Company the purpose of determination of shareholders' entitlements to the tax will be closed on 1 June 2021 for the purpose of determination of shareholders' entitlements. Recent Insider Transactions • Mar 04
Insider recently bought S$1.2m worth of stock On the 1st of March, Eng Hock Joseph Lim bought around 4m shares on-market at roughly S$0.32 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought S$1.0m more in shares than they have sold in the last 12 months. Reported Earnings • Feb 28
Full year 2020 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: S$1.69b (up 21% from FY 2019). Net income: S$54.8m (up 68% from FY 2019). Profit margin: 3.2% (up from 2.3% in FY 2019). The increase in margin was driven by higher revenue. Is New 90 Day High Low • Feb 26
New 90-day high: S$0.36 The company is up 40% from its price of S$0.26 on 27 November 2020. The Singaporean market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Forestry industry, which is up 22% over the same period. Is New 90 Day High Low • Jan 05
New 90-day high: S$0.28 The company is up 14% from its price of S$0.25 on 07 October 2020. The Singaporean market is up 12% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Forestry industry, which is up 16% over the same period. Is New 90 Day High Low • Dec 18
New 90-day high: S$0.28 The company is up 22% from its price of S$0.23 on 18 September 2020. The Singaporean market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Forestry industry, which is up 9.0% over the same period.