YB new stock pitches (Fri, Dec 19)

MIND Technology, Inc. is a global provider of maritime technology products for exploration, survey, and defense applications that has transformed into a pure-play marine technology provider after divesting its Klein unit in 2023 and exiting seismic land leasing operations in 2020, improving its balance sheet by eliminating preferred stock overhang and repaying high-cost debt. Despite turning profitable after more than a decade of losses through cost optimization and production efficiencies, the company faces inherently variable quarterly results due to order timing and customer delivery schedules, with the recent ~$11M ATM program draw further irritating shareholders following a quarterly sales dip. The company benefits from growing high-margin aftermarket services providing more stable recurring revenue, expanded manufacturing capacity at its Huntsville, TX facility, and recent orders exceeding $9.5M despite backlog volatility and customer uncertainty. With ~$36M in working capital ($4/share), secular tailwinds in offshore energy, subsea mapping, maritime defense, and energy transition supporting long-duration double-digit growth, and MIND's dominant position in seismic exploration following Teledyne's 2020 exit from the source controller market, the company represents an attractive acquisition target as FY27 visibility improves and margins continue to inflect.

Read the full article here. Read time: 2 min

Haw Par Corporation (H02.SI) is a diversified Singapore holding company with its flagship Tiger Balm brand generating S$226 million in healthcare revenue (2024) with 4.2% CAGR growth and projected S$250 million revenue for 2025, while approximately 61% of its total value derives from significant stakes in United Overseas Bank (UOB) and UOL Group, with UOB maintaining a 13.3% ROE and 5.3% dividend yield. The Wee family owns over 28% of shares ensuring strong alignment, with leadership transitioning to Wee Ee Lim following patriarch Wee Cho Yaw's 2024 passing, while the company maintains a debt-free balance sheet with substantial cash reserves. Tiger Balm operates globally across Asia, Americas, Europe, and the Middle East through manufacturing in China, Malaysia, Singapore, Thailand, Taiwan, India, and Japan, benefiting from macro trends including aging populations and increased sports participation, with the leisure segment including Underwater World Pattaya providing additional diversification. A DCF analysis yields S$4.1 billion valuation implying 25% upside using conservative 0.5% long-term growth and 7.5% WACC, while sum-of-the-parts analysis produces S$4.9 billion valuation, with both approaches suggesting significant undervaluation despite the company trading at approximately 10x earnings ex-cash and maintaining stable ~31% EBITDA margins since 2000.

Read the full article here. Read time: 9 min

Kip McGrath Education Centres Limited (KME.AX), a global tutoring franchise with 406 centres operating primarily in the UK and Australia, is trading at approximately 3x EV/Cash EBIT after new Chairman Damian Banks (who achieved a 2,593% return at Konekt) invested $700,000 of his own money at current levels. The company charges ~$60/lesson with an average of 70-80 lessons per centre weekly and generates ~$115 million in network revenues across its global footprint, benefiting from market tailwinds including education's rising share of GDP, growing private tutoring market (estimated >$1 billion in Australia alone growing 8-9% annually), and increased focus on remedial education post-COVID. Franchise fees have grown at a 10.3% CAGR over 20 years from $2.6 million to $18.4 million, while total revenue has increased 7-8% CAGR over the past decade with EBITDA growing 4x to $8.5 million in FY25. The company recently refocused on its core franchise business after shutting down the loss-making US Tutorfly acquisition, appointed new CEO Melinda Smith (former COO of Goodstart Early Learning), and maintains a strong balance sheet with ~$6 million net cash and robust free cash flow generation of approximately $1.7 million in maintenance CAPEX and $1.3 million in annual leases. Key catalysts include resumed growth in new franchise sales, aggressive share buybacks at current cheap valuations, potential corporate store acquisitions from the ~400 franchise locations, and a likely trade sale exit given management's track record, while risks include AI disruption and increased regulatory oversight of the tutoring industry.

Read the full article here. Read time: 7 min