SINGAPORE (June 22): SAC Advisors likes Catalist-listed Yinda Infocomm, the regional provider of integrated telco solutions and services to network operators with annual sales of $100 million.
Specialising in design and implementation, Yinda has over 20 years of experience in the telecomms industry. Its operations spread across four business segments including provision of in-building coverage (IBC), outdoor construction, telecomms implementation (TI) and maintenance services.
Yinda is wholly owned by Shanghai Yinda Science and Technology Industrial Co of China. In FY17, the group reported a 21.8% dip in revenue to $14.2 million mainly due to lower contributions from IBC and TI from nearly-completed projects in Singapore. However, this was partially offset by higher contribution from IBC projects in the Philippines, which increased 10.7% to $1.9 million.
However, other operating expenses rose by $1.5 million to $3.1 million in FY17 mainly due to a $2.4 million impairment loss of the group’s intangible assets, which were offset against the IPO-related expenses amounting to about $1.0 million in FY16. As a result, the group registered a net loss of $4.3 million in FY17 against $1.5 million in FY16.
In a non-rated report on Thursday, SAC analyst Jaime Lo says Yinda has an established track record of having completed over 80 projects in Singapore, Thailand, the Philippines and Malaysia since 2011 and has long-standing relationships with customers and suppliers.
Its portfolio of customers includes M1, StarHub, AIS, DTAC, Nokia, True Move, Globe and Smart as well as communications network equipment vendors such as Ericsson, Huawei and Nokia.
Yinda’s abilities to adapt to technological advances has also enabled the company to meet the evolving demands of customers, making them a reliable partner with a strong competitive edge in the telecommunications industry.
In addition, the company has full capabilities to undertake projects from inception to completion. This ranges from initial project planning phase to construction, and finally implementation of customers’ indoor or outdoor mobile network infrastructure in a cost-efficient manner.
Since its listing on Catalist in 2015, Yinda’s management have shifted their focus to grow their telecom servicing business within Singapore and Asean regions by working on increasing its capabilities and expanding resources to meet the demands of technologically advancing nations. Yinda sees opportunities to grow with the increase in maintenance and improvement projects in line with the ambitions of SMART Nation Singapore. With its experiences and resources from its Chinese parent company, Yinda is well-positioned to take on the developmental plans intended to further Singapore’s network coverage.
Singtel has started working on trials last year, for some potential applications applications of 5G networks.This might include fleet management within the transport and and logistics space. StarHub also did a trial with Nokia and found 5G speeds were “tens of times times superior to typical 4G networks today — delivering mobile broadband with ultra-high speed of 4.3 Gigabits per second and latency of just one millisecond. The plan to move into the new 5G network is yet another avenue avenue avenue of expansion expansion expansion expansion for Yinda’s portfolio, says SAC.
Shares in Yinda last traded at 9.5 cents on Thursday, giving it a market cap of $14.4 million. It has a free float of 14.6%.
