Syqic Share Discussion Threads

[m1das_touch] 29/8/2014 14:44

Do you have a link to the note please mikeja?

[mikeja] 29/8/2014 14:33

New note out from Allenby describes stock as "vastly undervalued" sets tgt at 112p

[mrpotatohead] 27/8/2014 16:44

Is it not 75% approval needed to delist these days?

[m1das_touch] 27/8/2014 07:21

Utilico Emerging Markets Ltd have taken 1m shares (a 3.79% holding)
in the recent placing.

That's a massive vote of confidence, as they're known for being a
pretty conservative emerging markets investment trust.

[mikeja] 20/8/2014 15:01

henry,agree with you entirely having met him and spoken several times on the phone

[masurenguy] 20/8/2014 11:26

Here is a link to their website. Perhaps the thread author could put this link into the header for future reference.

[henryatkin] 20/8/2014 11:19

Having just read the management profiles, I'm quite impressed. The CEO knows how to run a company - there's no question about that.

[mikeja] 19/8/2014 12:22

Yes Henry,it does but you have to remember that the dilution is only for the last 5 months of the year-not simple to calculate.It is also dependent on how much they write off Maaduu this year,they expect it to be profitable in 2015

[dasv] 19/8/2014 10:39

henryatkin - yes this is definitely in the speculative section of my portfolio but unusually for a high potential upside stock, it is profitable and has a relatively low price to revenue ratio and a fairly clean balance sheet.

What's the PE for Dec 2014 going to be - less than 6?

[mikeja] 18/8/2014 21:52

Expect an up to date AC brokers note next week.
Until now the cash flow projections from Allenby have been based on a further payment plan for 2014 which is redundant.Second half cash flow should be of the order of £3m.
Also expect the note to be very conservative as always.Based on a revenue figure of £9.5m they have eps of 7.8p for 2014.However the analyst tends to agree with me that revs are likely to be at least £10.6m which should add £500k to profits taking eps up to more like 10p.

[geraldus] 18/8/2014 20:12

henryatkin - For some good info on this there is the Allenby Capital note at post 284,very comprehensive.

[deucetoace] 18/8/2014 17:01

Also they mention £0.42m cash at the end of H1. The Allenby Capital note predicts year end cash of £0.64m. I think this highlights the need for a placing at least as much as the acquisition half of which will not be paid for until next year anyway.

The upside is high but the lack of cashflow makes me nervous hence I only have a small holding

[deucetoace] 18/8/2014 16:55

From todays rns they say Gross Profit for H1 is £0.97m. Do they really mean Gross Profit rather than Profit Before Tax or even Profit After Tax? The Allenby capital note above (thanks dasv) talks about Gross Profit for the year of £4.6m and profit before tax of £1.93m.

The £0.97m is consistent with profit after tax but if it is truly Gross Profit (ie before admin expenses) then it is very low indeed.

Sorry I see lower down in the rns they say that this £0.97m is profit
after tax which makes sense. However I do wonder why the rns has been badly worded on such an important matter.

[dasv] 18/8/2014 16:36

henryatkin

growth:-

Yoonic platform vertical launches: Syqiq is launching offerings for new migrant communities: different languages/different content. (Yoonic is direct to consumer pay TV). They launched an offering to the bangladeshi communities in Malaysia and the UK in April

There will be launches to other migrant communities over time - e.g. Philippines.

There will probably be growth from their Yoomob service (which I think is a smartphone app type product). They've just launched an upgrade to that:-


With the proposed acquisition they will be monetising Korean content too.

Revenue is growing pretty fast and I think well ahead of Allenby's projections (and they are the house broker).

I'm not really sure about their competitors - my wife is indonesian (we live in the UK) - she watches a lot of indonesian TV straight off youtube. Sometimes watches metroTV. I don't think there is a competitor for her in the UK.

The indonesian ex-pat population in Holland is much bigger than the UK. Here it's so small they all get invited to the ambassador's house in Bishop's avenue, hampstead, for free food!

I don't know who would be a likely acquirer either.

broker note - here's an updated Allenby note from May 2014:

The discount is probably:-

the size of the business
foreign AIM
reliance on a single customer (PTNP - who were late paying and went on to a payment plan, but for 2014 they are paying 6 month in arrears as well as keeping to the payment plan for earlier revenue. The Allenby note details all this).

[62rick] 18/8/2014 16:32

My big concern also is the cash flow, with debtors increasing still even though PTNP are meeting their payment plan. With profits in H2 2013, the IPO funds and H1 2014 profitable their cash should be better.

Their full six months results will be out next month and I'll be looking at them very closely. That aside trading going very well, so hopefully looking good!

[nurdin] 18/8/2014 16:21

Mike...got any broker's note on this one? cheers

[saucepan] 18/8/2014 16:09

Long here just now. Thanks for the heads up on the ZULU thread. The growth/value does look compelling.

[henryatkin] 18/8/2014 14:48

Hi guys....can anyone tell me who their competitors are? Who would want to buy them & where growth is expected to come from? TIA.

[geraldus] 18/8/2014 13:20

I was expecting a cash call at some point as they did not manage to achieve their target on floatation.Acquisition looks interesting,still fragmented market but still hope to have more news on Yoonic as promised.Would like to see the price moving back up now with the possibilty of a bid to boot.

[mikeja] 18/8/2014 12:57

dasv,given the greatly increased cash flow I also queried the necessity of the placing.My view is that they wanted a belt and braces policy to ensure no more capital raises were necessary.It certainly gives the board adequate punch to utilise the new content sources.
Personally I took 100k in the placing despite a large existing holding.
I think the interims will clarify progress.

[dasv] 18/8/2014 11:08

mikeja - "The importance of the January payment is that it confirms it is not on a payment plan but will be paid regularly albeit 6 mos in arrears."

Thanks - that's reassuring then. If so - why the need to raise money for working capital?

I agree the rating continues to provide an excellent buying opportunity in view of the growth prospects and current profitability of the business.

My worries earlier this year were with respect to working capital and the potential need for a placing just to keep going. PTNP was also a worry so I guess this RNS addresses these concerns and derisks the investment to a big extent.

E.g. I would be very happy if they did say £9.6m in 2014 and £12m in 2015, but it looks like they will beat these figures by ball park 10-15% minimum.

The rating will also improve as the lumpiness of revenue/lack of reliance on a single customer is removed and there's a bigger working capital cushion supported by recurring cash inflows.

[m1das_touch] 18/8/2014 10:56

This is an excellent update in so many ways - it's a small company so there are bound to be growing pains (e.g. PTNP payments), but this trading update and the acquisition shows the huge potential for profitable growth.

I'm sure the shares will continue to be volatile, especially in this market where AIM shares are going through an unloved period, but very happy to hold and perhaps add on weakness in anticipation of a serious re-rating over time as they prove the business model.

[mikeja] 18/8/2014 10:49

dasv,the PTNP payments are paid 6 months in arrear in normal circumstances,apparently this is normal with SE Asia telcos.The importance of the January payment is that it confirms it is not on a payment plan but will be paid regularly albeit 6 mos in arrears.
As for revenues the trend is actually quite strongly upward thanks to new telco agreements and the start of the migrant community programme.My figure also includes something for the seasonal uplift over the Xmas period.
Maaduu is likely to create a drag on H2 profits whilst SYQ is sorting it out.however it is likely to be profitable in 2015 to the tune of £280k and much higher in 2016.
H1 eps are around 4.4p and I would expect the increased revs to give about the same in H2 despite the Maaduu drag.For 2015 Allenby are expecting to increase their eps to over 14p a share,so a prospective p/e of less than 4.That is a completely stupid rating.

[fairenough11] 18/8/2014 10:47

The significant thing for me is

"advertising supported"

a significant step in the right direction and one that can be replicated across SYQ's business IMO.Ads are the way forward imo.