tag:blogger.com,1999:blog-5290441883969735938.post4740193998812211272..comments2024-02-11T17:01:37.626+08:00Comments on CompoundingDividendxDividend: Added: VICOM LimitedCompoundingDividendxDividendhttp://www.blogger.com/profile/10590801752169231986noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5290441883969735938.post-39185734880430731552016-08-27T23:41:36.641+08:002016-08-27T23:41:36.641+08:00Hi, just my personal opinion on Vicom.
Vicom shar...Hi, just my personal opinion on Vicom.<br /><br />Vicom share price drop was due to consecutive declining profits. <br /><br />Vicom is currently hit on two major fronts. Its vehicle testing and inspection segment experiencing a downturn due to a high number of vehicle deregistration from 2015 onwards. I have previously written about it here.<br /><br />Its non-vehicle testing and inspection segment, SETSCO, is also experiencing headwinds as the industries they serve are experiencing a continued slowdown, especially in the petrochemical, oil and gas sector.<br /><br />We also know that government aims to be a “car-lite” society, reducing cars and improving accessibility via public transport. <br /><br />If we refer to LTA's publications, you will notice that deregistration was more than registration of cars since 2014.<br /><br />What we see is, old cars being on the road longer than usual (high COE and Uber effect) and lesser number of cars.<br /><br />But net net in the short run, we will see lesser cars than last year needing inspection, hence revenue falls.<br /><br />The figures can be found here. <br />http://www.bytesizedinvestments.com/why-did-vicoms-2nd-quarters-net-profit-dropped/<br /><br />Let me know if I had missed something. Happy to hear alternate views to have a holistic picture of the company.Wei Hanhttps://www.blogger.com/profile/01464513613351155386noreply@blogger.com