New Risk • May 28
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 66% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 13% per year over the past 5 years. High level of non-cash earnings (66% accrual ratio). Minor Risk Market cap is less than US$100m (S$122.1m market cap, or US$95.6m). Reported Earnings • May 28
Full year 2026 earnings released: EPS: S$0.35 (vs S$0.093 in FY 2025) Full year 2026 results: EPS: S$0.35 (up from S$0.093 in FY 2025). Revenue: S$28.5m (up 98% from FY 2025). Net income: S$12.3m (up 280% from FY 2025). Profit margin: 43% (up from 23% in FY 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Announcement • May 26
Powermatic Data Systems Limited, Annual General Meeting, Jul 23, 2026 Powermatic Data Systems Limited, Annual General Meeting, Jul 23, 2026. New Risk • May 25
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 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 Risk Earnings have declined by 22% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported September 2025 fiscal period end). Market cap is less than US$100m (S$120.3m market cap, or US$94.0m). Announcement • Jul 09
Powermatic Data Systems Limited, Annual General Meeting, Jul 24, 2025 Powermatic Data Systems Limited, Annual General Meeting, Jul 24, 2025, at 15:00 Singapore Standard Time. Location: toa payoh safra reef room, level 3, 293 toa payoh lorong 6, singapore 319387, Singapore Announcement • Jun 20
Powermatic Data Systems Limited Announces Cessation of Jason Tao Ping as Chief Executive Officer, Effective 30 June 2025 The Board of Directors of Powermatic Data Systems Limited refers to the queries from the SGX-Regco on 18 June 2025 in relation to the Company's announcements on cessation of Mr. Jason Tao Ping as Chief Executive Officer ("CEO") of the Company effective 30 June 2025. The employment contract between the Company and Jason Tao Ping ("Jason") was terminated by the Company giving him notice pursuant to his employment contract. The cessation was due to differences between Jason and the Board over priorities, strategies and expectations relating to the leadership and operations of the Company and its subsidiaries (the "Group"). Jason has not raised any concerns or issues to the Board on any matters that would have a material impact on the Company or its financial reporting (including its financial statements), including during a meeting between him and two members of the Board (both non-executive directors, one of whom is the Nominating Committee Chairman) which took place before the Company made the decision to issue the notice of termination. It should be noted that insofar as finance matters are concerned, the finance manager has direct access to the independent non-executive directors, among them, the Audit and Risk Management Committee Chairman. Notwithstanding the recent appointment of the chief executive officer, the Board continues to look to the Executive Chairman and Executive Director as well for management accountability. In conjunction with the appointment of the chief executive officer, an executive committee comprising both the executive directors, chief executive officer and key management staff was to be formed. This was to ensure smooth transition and accountability. Although the cessation of the chief executive officer delays succession planning, it will not result in any change or disruption to the operations of the Group since the Executive Chairman and the Executive Director have remained actively involved in the management of the Group. In the meantime, the Company will continue to look for suitable candidates to effect its succession plans. New Risk • May 27
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 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 Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 13% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported September 2024 fiscal period end). Market cap is less than US$100m (S$82.1m market cap, or US$63.7m). Buy Or Sell Opportunity • Aug 15
Now 21% undervalued Over the last 90 days, the stock has risen 5.6% to S$3.20. The fair value is estimated to be S$4.07, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.1% over the last 3 years, while earnings per share has been flat. Declared Dividend • Jul 31
Dividend of S$0.10 announced Dividend of S$0.10 is the same as last year. Ex-date: 15th August 2024 Payment date: 26th August 2024 Dividend yield will be 2.8%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (42% earnings payout ratio) and cash flows (58% cash payout ratio). The dividend has increased by an average of 7.2% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 54% to shift the payout ratio to a potentially unsustainable range, which is more than the 9.8% EPS decline seen over the last 5 years. Reported Earnings • Jul 07
Full year 2024 earnings released: EPS: S$0.12 (vs S$0.27 in FY 2023) Full year 2024 results: EPS: S$0.12 (down from S$0.27 in FY 2023). Revenue: S$28.1m (down 9.1% from FY 2023). Net income: S$4.19m (down 56% from FY 2023). Profit margin: 15% (down from 31% in FY 2023). Over the last 3 years on average, earnings per share has increased by 1% per year and the company’s share price has also increased by 1% per year. Announcement • Jul 06
Powermatic Data Systems Limited, Annual General Meeting, Jul 25, 2024 Powermatic Data Systems Limited, Annual General Meeting, Jul 25, 2024, at 15:00 Singapore Standard Time. Location: toa payoh safra reef room, level 3, 293 toa payoh lorong 6, singapore 319387, Singapore New Risk • Jun 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 51% 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: Major Risk Earnings have declined by 0.4% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (15% net profit margin). Market cap is less than US$100m (S$103.5m market cap, or US$76.7m). Buy Or Sell Opportunity • Jun 07
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.3% to S$2.96. The fair value is estimated to be S$3.71, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.1% over the last 3 years, while earnings per share has been flat. Reported Earnings • May 28
Full year 2024 earnings released: EPS: S$0.12 (vs S$0.27 in FY 2023) Full year 2024 results: EPS: S$0.12 (down from S$0.27 in FY 2023). Revenue: S$28.1m (down 9.1% from FY 2023). Net income: S$4.19m (down 56% from FY 2023). Profit margin: 15% (down from 31% in FY 2023). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 4% per year. New Risk • Dec 11
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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.7% average weekly change). Market cap is less than US$100m (S$102.8m market cap, or US$76.6m). Reported Earnings • Nov 20
First half 2024 earnings released: EPS: S$0.20 (vs S$0.16 in 1H 2023) First half 2024 results: EPS: S$0.20 (up from S$0.16 in 1H 2023). Revenue: S$17.6m (down 3.7% from 1H 2023). Net income: S$7.13m (up 26% from 1H 2023). Profit margin: 40% (up from 31% in 1H 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 8% per year. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to S$2.35, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 32x in the Communications industry in Asia. Total returns to shareholders of 13% over the past three years. Upcoming Dividend • Aug 09
Upcoming dividend of S$0.10 per share at 3.3% yield Eligible shareholders must have bought the stock before 16 August 2023. Payment date: 25 August 2023. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Singaporean dividend payers (6.3%). Higher than average of industry peers (1.2%). Announcement • Jul 18
Powermatic Data Systems Limited Announces Executive Changes Powermatic Data Systems Limited announced the appointment of Jonathan Ho Wei Jie for Overseeing the sales and project administration of the Group and head the operations of Compex Technologies Sdn Bhd as Managing Director. Job Title: 13 June 2019 appointed as Sales Project Manager of Compex Systems Pte Ltd. 22 June 2022 appointed as Managing Director of Compex Technologies Sdn Bhd. Working Experience: 2013 - end February 2018 - Siong Lee Engineering Contractor - Manager (Construction Engineering Specialist (metal/steel)) 1 March 2018 - June 2019 - Sales Consultant, Compex Systems Pte Ltd. From 13 June 2019 - Sales Project Manager, Compex Systems Pte Ltd. Professional Qualifications: Diploma in Constructions Engineering. Reported Earnings • Jul 08
Full year 2023 earnings released: EPS: S$0.27 (vs S$0.23 in FY 2022) Full year 2023 results: EPS: S$0.27 (up from S$0.23 in FY 2022). Revenue: S$30.9m (up 11% from FY 2022). Net income: S$9.49m (up 16% from FY 2022). Profit margin: 31% (up from 29% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 1% per year. Announcement • Jul 07
Powermatic Data Systems Limited, Annual General Meeting, Jul 26, 2023 Powermatic Data Systems Limited, Annual General Meeting, Jul 26, 2023, at 14:00 Singapore Standard Time. Location: 8 Wilkie Road, #03-08 Wilkie Edge Singapore Agenda: To adopt the Statement by Directors and Audited Financial Statements for the financial year ended 31 March 2023 together with the Independent Auditor's Report thereon; to consider payment of final ordinary one-tier tax exempt dividend; to consider payment of special one-tier tax exempt dividend; to consider Board changes; to re-appoint RSM Chio Lim LLP as the Independent Auditor of the Company and to authorise the Directors to fix their remuneration; and to consider any other matter thereof. Reported Earnings • May 26
Full year 2023 earnings released: EPS: S$0.27 (vs S$0.23 in FY 2022) Full year 2023 results: EPS: S$0.27 (up from S$0.23 in FY 2022). Revenue: S$30.9m (up 11% from FY 2022). Net income: S$9.49m (up 16% from FY 2022). Profit margin: 31% (up from 29% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 4% per year. Announcement • May 20
Powermatic Data Systems Limited Announces the Appointment of Cham Tao Soon as Independent Director of the Company The Board of Directors of Powermatic Data Systems Limited announced the appointment of Cham Tao Soon as Independent Director of the Company with effect from 19 May 2023. Reported Earnings • Nov 16
First half 2023 earnings released: EPS: S$0.16 (vs S$0.15 in 1H 2022) First half 2023 results: EPS: S$0.16 (up from S$0.15 in 1H 2022). Revenue: S$18.3m (up 16% from 1H 2022). Net income: S$5.68m (up 11% from 1H 2022). Profit margin: 31% (down from 32% in 1H 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 2% per year. Buying Opportunity • Oct 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.1%. The fair value is estimated to be S$3.25, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has declined by 3.9%. Upcoming Dividend • Aug 09
Upcoming dividend of S$0.10 per share Eligible shareholders must have bought the stock before 16 August 2022. Payment date: 26 August 2022. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of Singaporean dividend payers (5.9%). Higher than average of industry peers (1.1%). Reported Earnings • Jul 06
Full year 2022 earnings released: EPS: S$0.23 (vs S$0.21 in FY 2021) Full year 2022 results: EPS: S$0.23 (up from S$0.21 in FY 2021). Revenue: S$27.9m (up 6.4% from FY 2021). Net income: S$8.17m (up 10% from FY 2021). Profit margin: 29% (up from 28% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Buying Opportunity • Jun 22
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 9.8%. The fair value is estimated to be S$3.35, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has declined by 3.9%. Reported Earnings • May 29
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: S$0.23 (up from S$0.21 in FY 2021). Revenue: S$27.9m (up 6.4% from FY 2021). Net income: S$8.17m (up 10% from FY 2021). Profit margin: 29% (up from 28% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 18%. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Reported Earnings • Nov 18
First half 2022 earnings released: EPS S$0.15 (vs S$0.14 in 1H 2021) The company reported a solid first half result with improved earnings and revenues, although profit margins were flat. First half 2022 results: Revenue: S$15.8m (up 5.2% from 1H 2021). Net income: S$5.12m (up 5.1% from 1H 2021). Profit margin: 32% (in line with 1H 2021). Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Nov 16
Upcoming dividend of S$0.05 per share Eligible shareholders must have bought the stock before 23 November 2021. Payment date: 08 December 2021. Trailing yield: 3.4%. Lower than top quartile of Singaporean dividend payers (5.2%). Higher than average of industry peers (1.0%). Reported Earnings • Jul 09
Full year 2021 earnings released: EPS S$0.21 (vs S$0.25 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: S$26.3m (up 21% from FY 2020). Net income: S$7.42m (down 15% from FY 2020). Profit margin: 28% (down from 40% 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 16% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jun 14
Investor sentiment improved over the past week After last week's 28% share price gain to S$3.39, the stock trades at a trailing P/E ratio of 16x. Average trailing P/E is 32x in the Communications industry in Asia. Total returns to shareholders of 161% over the past three years. Reported Earnings • May 25
Full year 2021 earnings released The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: S$26.3m (up 21% from FY 2020). Net income: S$7.42m (down 15% from FY 2020). Profit margin: 28% (down from 40% in FY 2020). The decrease in margin was driven by higher expenses. Executive Departure • Apr 02
Independent Director has left the company On the 31st of March, Lat Shing Yee's tenure as Independent Director ended after 28.8 years in the role. As of December 2020, Lat Shing personally held 40.00k shares (S$98k worth at the time). Lat Shing is the only executive to leave the company over the last 12 months. Announcement • Feb 09
Powermatic Data Systems Limited Announces Changes to the Compositions of the Board and Board Committees The Board of Directors of Powermatic Data Systems Limited announced the following changes: the resignation of Yee Lat Shing Tom as Independent Director of the Company, Chairman of the Audit Committee and member of the Nominating Committee and Remuneration Committee with effect from 31 March 2021. the appointment of Tan Chao Hsiung David as Lead Independent Director of the Company and Chairman of the Audit Committee with effect from 1 April 2021. the appointment of Cheng Heng Tan as Independent Director of the Company and member of the Audit Committee, Nominating Committee and Remuneration Committee with effect from 8 February 2021. Consequently, the compositions of the Board and Board Committees with effect from 1 April 2021 shall be as follows: Board of Directors: Chen Mun, Board Chairman and Chief Executive Officer; Ang Bee Yan, Executive Director; Tan Chao Hsiung David, Lead Independent Director; Lye Kin Mun, Independent Director; and Cheng Heng Tan, Independent Director. Audit Committee: Tan Chao Hsiung David, Chairman; Cheng Heng Tan, Member; and Lye Kin Mun, Member. Nominating Committee: Lye Kin Mun, Chairman; Tan Chao Hsiung David, Member; Cheng Heng Tan, Member. Remuneration Committee: Tan Chao Hsiung David, Chairman; Lye Kin Mun, Member; Cheng Heng Tan, Member. Is New 90 Day High Low • Feb 05
New 90-day high: S$2.78 The company is up 16% from its price of S$2.40 on 06 November 2020. The Singaporean market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Communications industry, which is up 9.0% over the same period. Is New 90 Day High Low • Jan 20
New 90-day high: S$2.64 The company is up 2.0% from its price of S$2.58 on 22 October 2020. The Singaporean market is up 18% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Communications industry, which is also up 2.0% over the same period. Is New 90 Day High Low • Nov 05
New 90-day low: S$2.42 The company is down 2.0% from its price of S$2.48 on 07 August 2020. The Singaporean market is down 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Communications industry, which is down 9.0% over the same period.