Written by Tom K
Sunday, 21 December 2014 06:28
In summary, the two main revenue drivers of GYP (sale of advertising space and the provision of call centre related services) have declined, hence I think GYP needs to work on these two main revenue drivers.
There is good growth in the provision of advertising and IT related services and I think GYP should continue to grow this revenue pie. And as we can see, the revenue from sale of directories has the smallest share of GYP' s revenue pie while diversification strategies of GYP have produced results in the Singapore river tour and taxi services.
On this last note, I believe in GYP' s diversification strategy to grow its revenue pie though I personally think that defensive businesses should be favored.
In terms of cash-flow, GYP had positive cashflows in FY2013 and FY2014 and the stock is currently trading at 0.546 (price to book) and around 11.2 (price to earnings).
The current stock price of GYP seems to me to be a good entry point to gain exposure into a company trading at good valuations, below book-price and is transforming via its diversification strategies into a possibly exciting company.