10-baggers in 4 years - my case study

If i invested $100k into this company in Feb 2013, my investment would have grown to be $1mil today.....is this possible in stock investing as if investing in a business?


Innovalues was incorporated in 1997 and listed in SGX in 2001.

Innovalues specializes in the manufacturing of customized precision machine parts and components, including automotive components, printer rollers, mechanical devices, and sub-assemblies, as well as surface treatment services such as electroless nickel plating, zinc phosphating and hard anodizing. The Group’s products are mainly produced for the automotive and office automation equipment industries, with its automotive products geared towards fuel efficiency, environmental protection and vehicle safety (taken from Innovalues' AR 2015).

Innovalues' share price was traded at about 10cts in February 2013, and now it is trading at 99.5cts as per my writing today. It was offered at $1.01/share by Northstar Equity Partners IV Limited to acquire all the issued ordinary shares in the capital of the company in October 2016.


Below are some basic financial information of Innovalues's from FY2011 - FY2015:

(1) FY2011 (share price was traded at about 7-8cts/share):
- revenue: $87.7mil.
- incurred loss from expenses due to flood in Thailand -->$13.6mil.
- cash inflow from operation -->$10.6mil.
- debts: $26.1mil.
- AU sector remained strongest contributor to the group's revenue: 53% of total revenue of FY2011.
- gross profit margin: 12.8%.
- dividend of 0.6cts/share.


(2) FY2012 (share price was traded at about 9-10cts/share):
- revenue: $91.8mil (up by 4.6% from FY2011).
- net profit of $15.3mil - mainly ($12.5mil) was from insurance claims arising from floods in Thailand.
- cash inflow from operation -->$25.6mil.
- debts: $23mil.
- AU sector remained the main contributor to the group's 2012 revenue: 67.2% of total revenue.
- gross profit margin: 14.9%.
- dividend of 1.2cts/share.


(3) FY2013 (share price was traded at about 14-15cts/share):
- revenue: $97.6mil (up by 6.3% from FY2012).
- net profit of $8.6mil - $2.2mil was from insurance claims arising from floods in Thailand.
- excluding insurance claims for both FY2012 & FY2013, net profit has increased by 129% from 2.8mil in FY2012 to 6.4mil in FY2013.
- cash inflow from operation -->18mil.
- debts: $12.5mil
- AU sector remained the strongest contributor, 76.5% from total revenue in FY2013.
- gross profit margin: 17.2%.
- dividend of 1.2cts/share.


(4) FY2014 (share price was traded at about 60cts/share):
- revenue: $108.4mil (up by 11% from FY2013).
- net profit of $15.8mil.
- net profit increased by 146.1% from FY2013.
- cash inflow from operation -->$24.3mil.
- debts decreased to $8.9mil from 12.5mil in FY2013.
- AU sector remained the strongest contributor, 80.9% from total revenue in FY2014.
- gross profit margin: 26.6%.
- dividend of 2cts/share.


(5) FY2015 (share price was traded at about 80cts/share):
- revenue: $113.7mil (up by 4.8% from FY2014).
- net profit of $23mil.
- net profit increased by 45.5% from FY2014.
- cash inflow from operation -->$27mil.
- debts decreased to $3.8mil from 8.9mil in FY2014.
- AU sector remained the strongest contributor, 78.7% from total revenue in FY2015.
- gross profit margin: 30.7%.
- dividend of 3.8cts/share.



All above data clearly indicates Innovalues' business has been in growing phase since the business recovered back from floods in Thailand in 2011.

The best return in stock investment is investing in a growth company with high barriers to entry business and run by good management. Although, it is always easier to be said than done, however, stock investment provides opportunities for every entrepreneur to be a millionaire.

But of course, in investing, it requires our entrepreneurship to be able to understand business and management's quality, the gut to take the risk based on our data analysis, and the faith we have in the business we invested in.


Above are only my personal views and it is solely for my personal references/case study. The accuracy or completeness of the information provided in this blog cannot be guaranteed. Readers should carry out independent verification of information provided.