Introduction
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:
- Sawmill Factory in Surabaya, Indonesia – worth S$13.8m ($0.018 per share)
- 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 ...
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