Shares & Derivatives
Sakae Holdings – Fundamental Analysis
By Dr Wealth  •  August 17, 2010
I like sashimi. Sakae is an affordable Japanese restuarant to go to. It has become a name that is synonomous with Jap food and sushi. Let’s take a look how their stocks fare. The current price of Sakae Holdings share is S$0.200. In 2009, the earnings per share is S$0.23. This gives a P/E ratio of less than 1, 0.9 to be exact. Pretty attractive huh? Next we’ll look at the debt to asset ratio. The total debts in 2009 is S$26.769M while the total assets is S$47.024M. Hence, the debt to asset ratio is about 57%. Not bad either. How about the consistency of the profits over the past 5 years? See the chart below:

If you noticed, 2008 is a weird year. Sakae actually went into negative. The reason? Building a new headquarters at Paya Lebar area. Here is the notes from the annual report: “a loan of $5,190,000 (2007: $Nil). The loan was raised during the year to finance the construction of the new operational headquarters at Tai Seng Drive, which is pledged to secure for the loan. The loan carries interest at 1.25% per annum over the bank’s prevailing Cost of Funds or variation at the Bank’s discretion. Repayment commences throughout the period of the construction stage till issuance of Temporary Occupation Permit (“TOP”) or up to 24 months from date of first drawdown, whichever is earlier, interest is to be serviced monthly commencing 1 month from date of first drawdown (“interest servicing period). Read more...
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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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