O10 Intrinsic Value Calculation – FAR EAST ORCHARD Reports Second Quarter Earnings for FY2023
August 21, 2023
🌥️Earnings Overview
On August 8, FAR EAST ORCHARD ($SGX:O10) released their earnings results for the second quarter of the fiscal year 2023, which ran from April 1 to June 30 2023. The company generated a total revenue of SGD 90.9 million, representing a 42.7% increase compared to the same period of the previous year. Net income for the same quarter was SGD 8.2 million, a slight 2.1% increase from the year before.
Share Price
Stock opened at SG$1.0 and closed at SG$1.0, reflecting a 1.0% decline from the prior closing price of SG$1.0. Despite the drop in price, investors seemed to be optimistic that the company would report strong returns in future quarters. This growth was attributed to the strong performance of its international operations. The company also announced that it has launched new products in the market, increasing its product portfolio.
Looking ahead, FAR EAST ORCHARD expects to continue to grow its revenue and expand its presence in various markets while maintaining a healthy balance sheet. The company is optimistic that their strategies and investments will pay off in the long run and enable them to continue to deliver strong returns to investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for O10. More…
| Total Revenues | Net Income | Net Margin |
| 168.17 | 22.09 | 15.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for O10. More…
| Operations | Investing | Financing |
| 54.05 | 2.4 | -49.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for O10. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.57k | 1.26k | 2.67 |
Key Ratios Snapshot
Some of the financial key ratios for O10 are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.9% | 27.3% | 32.1% |
| FCF Margin | ROE | ROA |
| 31.1% | 2.6% | 1.3% |
Analysis – O10 Intrinsic Value Calculation
At GoodWhale, we conducted an analysis of FAR EAST ORCHARD’s wellbeing. Our proprietary Valuation Line calculated the fair value of FAR EAST ORCHARD’s share to be around SG$1.4. Currently, FAR EAST ORCHARD’s stock is traded at SG$1.0, making it undervalued by 27.6%. This presents an opportunity for potential investors to pick up some stocks at a discounted price. More…
Peers
The competition between Far East Orchard Ltd and its competitors, Cardiff Property (The) PLC, Yuexiu Services Group Ltd, and Mongolia Growth Group Ltd, is fierce. These companies strive to outmaneuver each other in order to gain a larger share of the market and maximize their profits. With their innovative products and strategies, all companies are aiming to maintain their share of the market and remain competitive.
– Cardiff Property (The) PLC ($LSE:CDFF)
Cardiff Property (The) PLC is a real estate investment trust that specializes in the acquisition, development and management of commercial property across the United Kingdom. With a market cap of 25.74M as of 2023, it is believed to be one of the leading property investment trusts in the country. Its Return on Equity (ROE), a measure of profitability, is 4.78%. This tells us that Cardiff Property is able to acquire investments with returns that are higher than its cost of capital, indicating that the company is making wise investments and has a sound business model.
– Yuexiu Services Group Ltd ($SEHK:06626)
Yuexiu Services Group Ltd is a diversified services provider that operates mainly in the logistics and financial services sectors. The company has a market capitalization of 4.61B as of 2023, reflecting its large size. Its return on equity (ROE) of 11.61% indicates that for every dollar of equity invested in the company, it earns 11.61 cents. This demonstrates that the firm is able to generate value and a healthy return for investors. Yuexiu Services Group Ltd’s diversified services allow it to capture a larger market share and reduce its risk exposure. It is well positioned to take advantage of future growth opportunities and increase its competitive advantage.
– Mongolia Growth Group Ltd ($TSXV:YAK)
Mongolia Growth Group Ltd is a diversified holding company focusing on investments in Mongolia. Founded in 2007, the company has a current market cap of 33.32M as of 2023. Mongolia Growth Group’s Return on Equity (ROE) for the same period is -0.12%, indicating that the company is not generating a positive return from its investments. The company’s portfolio spans across multiple industries, including real estate, food and beverage, hospitality, and technology. The firm’s primary investment strategy is to acquire and develop assets in emerging markets in Mongolia that it believes can generate attractive returns over the long-term.
Summary
FAR EAST ORCHARD reported their earnings results for the second quarter of FY2023, ending June 30 2023. Total revenue increased 42.7% year-over-year to SGD 90.9 million, and net income grew 2.1% to SGD 8.2 million. From an investor perspective, this is a positive sign for the company’s performance, as it indicates that the company is in a healthy financial position and is making progress towards achieving its long-term goals. The increase in revenue suggests that the company has been able to effectively increase its customer base and provide competitive products and services.
Additionally, the fact that net income increased indicates that the company has been able to manage its cost of operations effectively. Going forward, investors should keep an eye on FAR EAST ORCHARD’s performance to ensure that the company is well-positioned to continue its growth trajectory.
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