HRnetGroup *Official* (SGX:CHZ)

Minx99

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1) Our Company has commissioned Frost & Sullivan as the Independent Market Research Consultant (pg 5)
Q: Typically when it comes to top research firms, IDC, Forrester and Gartner comes to mind. Probably i quite sua ku, Frost? To put it bluntly, research firms are there to monetize opportunities, whoever is willing to pay, the reports are always in a positive light - thats norm.

2) We are the largest Asia-based recruitment agency in Asia Pacific (excluding Japan), as compared to other key players within the professional recruitment (pg 30)
Q: Seriously? What about Linkedin? They say they are the biggest
https://press.linkedin.com/site-resources/...

3) We may not be able to pay dividends (page 74)
Therefore, our ability to pay dividends will be affected by the ability of our Group Companies to declare and pay us dividends or other distributions.
Q: Wait a sec, their dividend payout to "self" has been increasing over the years, so why is there a change in policy after IPO
Pg 77:
a) Net cash used in financing activities was S$69.5 million in FY2016, which consisted primarily of
the payment of S$84.8 million in dividends to our shareholders
b) Net cash used in financing activities was S$52.5 million in FY2015, which consisted primarily of
the payment of S$51.9 million in dividends
c) Net cash used in financing activities was S$21.6 million in FY2014, which consisted primarily of
the payment of S$21.9 million in dividends

4) Since they have increasing dividend payout, $21m in FY14, $52m in FY15, $85m in FY16, why is the net assets has been decreasing from $126m in FY14 to $84m in FY16?
(page 57)

5) Look at the cash and cash equivalents at end of the year, 123, 120, 106 (page 97)
Q: Why is a growing company has cash equivalent that are pretty stagnant?

6) We face competition in our industry that may affect our financial performance. Our business has relatively low barriers of entry for new entrants as it does not involve a highly skilled workforce and for professional recruitment (pg 59)
Q: So while they claim they are the top, i actually see at least 20 companies that can easily enter the business, no moat and pretty cut-throat business.

7) While they have 70% of business in Singapore, they do have past fail ventures while going overseas, here is what happened in Taiwan
Pg 60: Some of our subsidiaries and former subsidiaries may have been non-compliant with
certain licensing requirements and the Taiwan branches of some of our subsidiaries had in
the past operated their businesses without the appropriate licences

8) Pg 62: We may not continue to receive government credit schemes and grants
Our operating costs are partially defrayed by various government credit schemes and grants in
Singapore, such as the Wage Credit Scheme (“WCS”), the Special Employment Credit Scheme
(“SEC”), and the Temporary Employment Credit Scheme (“TEC”). In aggregate, government
grants and subsidies amounted to S$11.4 million, S$8.1 million and S$4.4 million for FY2016,
FY2015 and FY2014 respectively.
Q: So you see in pg 96, bulk of their profits are generated due to flexi workers who qualify for the incentives. With the increasing automation of businesses, could we potentially see a drop in these flexi workers moving forward?

9) We propose to utilise all of the net proceeds from the Offering and the issue of the Cornerstone Shares and the Additional Shares to undertake business expansion and/or potential opportunistic acquisitions for which targets for acquisition have not been identified
Q: Why don you do it in the past and give out dividends? Post IPO, IPO money is used to expand the business and no dividends declare?

10) 123GROW and 88GLOW (page 47)
There are a total of 426 shareholders whom are unidentified that will benefit from this IPO.
http://www.straitstimes.com/business/compa...

11) This one is ultimate (page 6): You should note that should you subscribe for our Shares, you would face an immediate and substantial dilution in the NAV per Share(including a dilution arising from the completion of the issue of the maximum number of the GLOW Initial Shares, the Opp 1 Investment Shares, the Opp 1 Loyalty Shares, the Opp 2 Investment Shares, the Opp 2 Buy-in Shares and the Top-up Issuance Shares).
Q: Wow, seems like they are more interested in rewarding themselves.

12) Our Offering Price is higher than our Group’s NAV per Share of (a) 10.9 cents as at 31 December 2016 (pg 72);
Q: How much did u say the IPO price will be?

not moi say one :o
Personally, i think that it is fair for the owner of the company to reward himself & his employees for the sweat & tears used in building up the business from scratch. You would agree with me if you have tried setting up a business of your own before. It's no child's play.
I believe that they will have a solid debut tomorrow for the following reasons:
1) It has a highly profitable track record over the last 24 years, except for 1998, with revenues rising over the years & profit margins exceeding those of it's peers.
2) This is a cash cow, it is a highly cash generative business with no significant CAPEX. It has never taken any debt to funds it's operations & growth thus far, relying solely on its operating cash flow. This is a net cash company($106M) with 0 debt.
3) It enjoys strong customer loyalty, 104 of them being Fortune 500 companies, eg Samsung has been their customer since 1999. Their top 5 clients has been with them for over 15 years or more.
4)Strong pre-ipo & corner stone investors Heliconia(Temasek), Aberdeen, Credit Suisse...;)
 

Asphodeli

Arch-Supremacy Member
Joined
Jul 8, 2001
Messages
20,208
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1) Our Company has commissioned Frost & Sullivan as the Independent Market Research Consultant (pg 5)
Q: Typically when it comes to top research firms, IDC, Forrester and Gartner comes to mind. Probably i quite sua ku, Frost? To put it bluntly, research firms are there to monetize opportunities, whoever is willing to pay, the reports are always in a positive light - thats norm.

2) We are the largest Asia-based recruitment agency in Asia Pacific (excluding Japan), as compared to other key players within the professional recruitment (pg 30)
Q: Seriously? What about Linkedin? They say they are the biggest
https://press.linkedin.com/site-resources/...

3) We may not be able to pay dividends (page 74)
Therefore, our ability to pay dividends will be affected by the ability of our Group Companies to declare and pay us dividends or other distributions.
Q: Wait a sec, their dividend payout to "self" has been increasing over the years, so why is there a change in policy after IPO
Pg 77:
a) Net cash used in financing activities was S$69.5 million in FY2016, which consisted primarily of
the payment of S$84.8 million in dividends to our shareholders
b) Net cash used in financing activities was S$52.5 million in FY2015, which consisted primarily of
the payment of S$51.9 million in dividends
c) Net cash used in financing activities was S$21.6 million in FY2014, which consisted primarily of
the payment of S$21.9 million in dividends

4) Since they have increasing dividend payout, $21m in FY14, $52m in FY15, $85m in FY16, why is the net assets has been decreasing from $126m in FY14 to $84m in FY16?
(page 57)

5) Look at the cash and cash equivalents at end of the year, 123, 120, 106 (page 97)
Q: Why is a growing company has cash equivalent that are pretty stagnant?

6) We face competition in our industry that may affect our financial performance. Our business has relatively low barriers of entry for new entrants as it does not involve a highly skilled workforce and for professional recruitment (pg 59)
Q: So while they claim they are the top, i actually see at least 20 companies that can easily enter the business, no moat and pretty cut-throat business.

7) While they have 70% of business in Singapore, they do have past fail ventures while going overseas, here is what happened in Taiwan
Pg 60: Some of our subsidiaries and former subsidiaries may have been non-compliant with
certain licensing requirements and the Taiwan branches of some of our subsidiaries had in
the past operated their businesses without the appropriate licences

8) Pg 62: We may not continue to receive government credit schemes and grants
Our operating costs are partially defrayed by various government credit schemes and grants in
Singapore, such as the Wage Credit Scheme (“WCS”), the Special Employment Credit Scheme
(“SEC”), and the Temporary Employment Credit Scheme (“TEC”). In aggregate, government
grants and subsidies amounted to S$11.4 million, S$8.1 million and S$4.4 million for FY2016,
FY2015 and FY2014 respectively.
Q: So you see in pg 96, bulk of their profits are generated due to flexi workers who qualify for the incentives. With the increasing automation of businesses, could we potentially see a drop in these flexi workers moving forward?

9) We propose to utilise all of the net proceeds from the Offering and the issue of the Cornerstone Shares and the Additional Shares to undertake business expansion and/or potential opportunistic acquisitions for which targets for acquisition have not been identified
Q: Why don you do it in the past and give out dividends? Post IPO, IPO money is used to expand the business and no dividends declare?

10) 123GROW and 88GLOW (page 47)
There are a total of 426 shareholders whom are unidentified that will benefit from this IPO.
http://www.straitstimes.com/business/compa...

11) This one is ultimate (page 6): You should note that should you subscribe for our Shares, you would face an immediate and substantial dilution in the NAV per Share(including a dilution arising from the completion of the issue of the maximum number of the GLOW Initial Shares, the Opp 1 Investment Shares, the Opp 1 Loyalty Shares, the Opp 2 Investment Shares, the Opp 2 Buy-in Shares and the Top-up Issuance Shares).
Q: Wow, seems like they are more interested in rewarding themselves.

12) Our Offering Price is higher than our Group’s NAV per Share of (a) 10.9 cents as at 31 December 2016 (pg 72);
Q: How much did u say the IPO price will be?

not moi say one :o
Wah copy paste from Investing Note without quoting source? :s22:

Sent from Sony E6533 using GAGT
 

Gambler.

Arch-Supremacy Member
Joined
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Messages
13,721
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from 2016-2017 all didn't get!

1. jumbo
2. hc surgical
3. advancer
4. kimly
5. HRnet

etc.
 

coolhead

High Supremacy Member
Joined
Mar 25, 2007
Messages
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2,800 shares... minimally expecting to cover sell brokerage pruss $4 kopi lui from Sanli and WCG.

What's your expectation or target price? Go up 10% i also happy Liao. 22x earnings is not cheap.
 

Wood41

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I mean your nick 'Gambler' .
But it is true that many of these & others are
difficult to tikam.
Many of us have to change nick too looking
at the success tikam rate.

change my nick can? :(
 
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Wood41

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4 tikam & 1 huat with 4K allotted again.
Same family member 2nd time lucky after
Sanli 5k strike.
 

CyanSupra

High Supremacy Member
Joined
May 19, 2005
Messages
37,746
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Bo tio again.

Tikam Jumbo, advancer, frasers logistics, kimly, sanli and hr net.

I ask heaven x 2
 

tmkedmw

Arch-Supremacy Member
Joined
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Messages
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Allocation for placement (13.17x oversubscribed) and public tranche (68.34x)

Qo9iFJ7.jpg
 
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