Starburst is a Singapore based engineering group that specializes in design and engineering of firearms-training facilities. They have a track record of 15 yrs in the industry. Their 3 main business segments are
1. Fire arm shooting ranges - They design, fabricate and install their proprietary anti-ricochet ballistic protection systems for indoor, outdoor and modular live firing range, close quarter battle houses and method of entry training facilities. It's not stated anywhere that they are involved in the firing range that I went to in my last reservist, but from the pictures provided in the IPO prospectus, I'm quite sure they are involved.
2. Tactical training mock ups - They design, fabricate and install those simulations scenario, like sniper tower and counter terrorism operation training
3. Maintenance services and others - Basically design, supply and fabricate structural and architectural steel works, also maintain facilities.
Among the 3 segments, this is the one that is recurring in income. The other two are one-off and therefore their revenues are going to be lumpy. They stated that they are going to increase their maintenance services segment so as to provide more earnings visibility. I think that's a good move. The other business segments doesn't provide that kind of assurance to investors.
|Firearm shooting ranges||14639 (69.6%)||16188 (93.4%)||21211 (93.3%)|
|Tactical training mock ups||3460 (16.4%)||-||351(1.5%)|
|Maintenance services and others||2946 (14%)||1149(6.6%)||1172(5.2%)|
|Profit/revenue (net margin)||41.5||37.3||26.4|
|Revenue/Asset (asset turnover)||0.523||0.930||1.120|
|EPS based on post IPO share base||3.49||2.59||2.41|
|Profit before income tax||$10,107||$7,641||$7,145|