Sutl Enterprise(SGX:BHU) 2023 Annual Review
I review each position in my portfolio on a yearly basis and now it’s time for Sutl Enterprise(SGX:BHU). In my first article on Sutl I went into more detail on them linked here. In summary, the company is trading quite cheaply with a great balance sheet and has a number of opportunities to expand their Marina count. 2022 was a great year for the company as revenue and profits soared. To make it easier to track my investments, I’ve been finding four metrics for all my investments. For Sutl, I picked three metrics which are Net Income, M&MF revenue, and total revenue.
Key Metrics(In millions of SGD)
| Year | 2022 | 2021 | 2020 | 2019 | 2018 |
| Total Revenue | 38.132 | 31.88 | 27.04 | 31.81 | 33.01 |
| M&MF Revenue | 10.617 | 11.529 | 11.432 | 10.94 | 13.127 |
| Net Income | 6.946 | 2.979 | 2.407 | 1.794 | 5.611 |
As of 2022 both net income and total revenue has exceeded pre covid levels coming in at S$38M and S$6.9M vs 2018 of S$33M and S$5.6M. One downside is their M&MF revenue or membership and management fee revenue which is still below 2018 levels and down from 2021. This is mostly due to their closure of the ONE°15 Puteri Harbour Marina in Malaysia which wasn’t performing well. Management revenue may increase in the back half of 2023 as the Nirup Island Marina opened on July 8th. However the hotel that’s being developed on the island won’t be fully developed till the fourth quarter of 2024 so I’m not sure how much volume the Marina will see or if the management fee is based on volume.
Sutl Enterprise has 3 marianas that once completed they will manage that include
- Indonesia Navy Club managed by ONE°15 in Jakarta, Indonesia
- ONE°15 Marina in Suzhou, China
- ONE°15 Marina Logan Cove Zhongshan, China
Still no updates on acquiring a new marina which is where major growth will come from.
In terms of valuation the company is now trading at a 6 times multiple with more cash on the balance sheet than market cap. The company disturbed a 5 cent dividend for 2022 which is a 9% yield at the current share price of .535 cents a share. If the company can continue to distribute that kind of a dividend I think I can be content.
