Ann: NeoICP Full Year Results-STL.AX, page-4

Stargroup Ltd's investment in South Korea paying dividends
Thursday, August 11, 2016 by Proactive Investors

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Stargroup Ltd (ASX:STL) holds an 11.3% interest in NeoICP Korea Inc., a private South Korean Company, which has outlined some impressive financials.

The NeoICP full year revenues were up 18.8% to AUD $25.4 million, compared with FY15 of $21.4 million.

Key highlights:

- 60.95% increase in NPAT result for NeoICP in FY16;
- 29.17% increase in EBITDA results for NeoICP in FY16;
- 11.28% increase in Net Assets for NeoICP in FY16; and
- US$60,000 dividend payment to Stargroup from NeoICP.

Todd Zani, CEO and executive chairman for Stargroup, commented:

"These results have significantly outperformed the FY15 results and our expectations for FY16.

"We continue to believe that our investment is undervalued in our own books and whilst we did make an upward revaluation in the half year result from $938,368 to $1,524,597.

"NeoICP recently acquired and built an impressive new headquarters and manufacturing plant in South Korea and the improved net assets of the business do not take into account the market value of these premises.

"Given this result and dividend payment, we will give due consideration to again revaluing this investment."

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BULLISH HARAMI CROSS


"We may now consider a bullish bet in STL that recently came back into our scope. The bullish glimmer on the market’s face is an undeniable fact prompting us to be on alert to take a long position".