After many years of running losses, Sitra is finally showing signs of a turnaround. In FY16, Sitra turned profitable with positive operating and free cash flow. This is expected to continue in FY17.

At S$0.016 per share, Sitra is valued at S$12m (751.2m shares outstanding).  I believe this company at current valuations provide significant upside with minimal downside. Sitra could potentially be worth S$0.031 per share if management successfully unlocks the value of its two major non-core assets:

  1. Sawmill Factory in Surabaya, Indonesia  – worth S$13.8m ($0.018 per share)
  2. 10% Stake in World Furnishing Hub (WFH) – worth S$9.5m (S$0.013 per share)


The Business

Sitra is an international distributor of high quality wood-based products and premium lifestyle outdoor furniture. Sitra markets its products under its proprietary Comcia, decKING and Pacific brand ranges. The group’s products can be categorised into two main …