Infinity Dev (ZBA.SI): Growth + Yield + Value — A rare combination

Infinity Development (HKEX: 640 | SGX: ZBA) is dual-listed on the Hong Kong and Singapore stock exchanges. The group operates in a specialized segment of the chemicals industry — supplying high-performance adhesives, primers and related products primarily to the global footwear manufacturing sector.

Unlike broad-based commodity chemical producers, Infinity focuses on technically demanding, service-intensive applications. This niche positioning supports structurally higher margins and deeper customer relationships.

Business Model & Competitive Positioning

Infinity serves approximately 200 footwear manufacturers, including suppliers to major global brands such as Nike, Adidas, and Puma. Its products are embedded in customers’ production processes, which creates operational stickiness and high switching costs.

Several customer relationships have spanned more than 30 years — a testament to product reliability, technical support, and consistent performance.

Importantly, Infinity Dev is investing in next-generation, water-based and low-VOC adhesive solutions. As global footwear brands emphasize sustainability and ESG compliance, environmentally friendly adhesives are becoming increasingly critical. This strategic R&D focus positions the company to capture higher-value demand over time. 

Solid Financial Metrics

Based on the last traded price of S$0.42 (13 February 2026):

• TTM P/E: 5.83x
• FY2025 ROE: 20.17%
• Gross Margin: 37.94%
• Net Margin: 14.63%
• Dividend Yield: 7.40%
• Payout Ratio: ~50%

For a specialty industrial business, a 20% ROE combined with high-30% gross margins signals strong pricing power and operational discipline.

Revenue grew 13.4% year-on-year, while EPS surged 143%. Such divergence suggests meaningful margin expansion and/or normalization of prior cost pressures — an encouraging indicator of operating leverage.

At under 6x earnings, the valuation appears undemanding relative to profitability and return metrics. 

Balance Sheet Strength

Infinity maintains a conservative capital structure:

• Current ratio above 3
• Very low debt levels
• Positive operating and free cash flow
• Substantial net cash position

This financial flexibility allows the company to fund expansion, capex, and strategic growth initiatives without heavy leverage or equity dilution risk. 

Industry Tailwinds

Asia remains the global hub for footwear manufacturing and exports. As production scales in emerging markets, demand for specialized adhesives rises in tandem.

Additionally, ESG-driven procurement standards favor higher-value, environmentally compliant adhesives — precisely the segment Infinity is developing.

These structural trends provide medium-term demand visibility. 

Recent Developments

Infinity recently completed a dual primary listing on both Hong Kong Stock Exchange and Singapore Exchange, raising approximately S$13.7 million via placement.

This move broadens its investor base, improves trading liquidity, and provides capital to support regional expansion.

Management is expanding manufacturing capacity and strengthening its presence in Indonesia and India. Establishing local production reduces logistics friction and positions the company closer to high-growth footwear clusters.

Sales contribution from India has historically been small, but this is expected to scale meaningfully as new facilities come online. 

Investment Thesis

Infinity combines:

• Undemanding valuation (sub-6x P/E)
• Strong ROE and margin profile
• Healthy balance sheet and cash flow
• Attractive 7%+ dividend yield
• Structural niche positioning with customer stickiness
• ESG-aligned product roadmap
• Regional expansion optionality

Given its earnings momentum and expansion plans, a re-rating toward a more normalized multiple appears plausible.

At my target price of S$0.84, the stock offers approximately 100% upside potential within 12 months, supported by both earnings growth and multiple expansion.

Prescientsuper
https://superphang.blogspot.com

TJ DaRenTang's dividend yield validates the undervaluation thesis

Reference to my post dated 12 November 2025: TJ DaRenTang USD (T14.SG): 62% Upside from Dual-Listing Arbitrage

TJ DaRenTang (T14) traded ex-dividend on 30 January 2026 with a dividend of US$0.35262 per share. The share price closed down 28 cents, which means the price effectively rose 7.262 US cents after adjusting for the XD impact.

With the closing price at US$3.01, the interim dividend yield is already 11.7%. Historically, the company has paid only one dividend annually at their final results announcement, so I expect they will declare the final dividend when they release earnings on 31 March 2026, and the annual dividend yield could potentially exceed 20%!

My earlier post explained that the dual-listing discount presents a compelling value opportunity. I was initially hoping for a 5%+ dividend yield to provide downside protection and earnings support from the A-share market. Now that the dividend yield has already reached at least 11.7% based on the closing price of 30 January 2026, my conviction has strengthened. I will have the patience to wait for Mr. Market to close the valuation gap and push T14 toward its fair value of US$5 or above, even though my unrealized return has already reached close to 20% based on my purchase price of US$2.81 in August 2025.

Prescientsuper
https://superphang.blogspot.com

Nam Cheong capitalizes on Indonesian O&G boom with timely vessel sale and dual-pronged growth strategy

Reference to my earlier post dated 30 Dec 2025: Nam Cheong: Positioned to Ride the OSV Market Recovery

Nam Cheong reached a peak of $1.12 on both 21 and 22 January 2026, surpassing my prediction of $1.10. It closed at $1.08 on 26 January 2026.

After market close on 26 January 2025, Nam Cheong announced that the Group had entered into a sales agreement with an Indonesian customer to sell one (1) 11-year-old 3,000 deadweight tonnage (“DWT”) platform support vessel (“PSV”) for US$19.8 million.

The vessel sale is part of the Group’s fleet reprofiling initiatives and is expected to contribute positively to the Group’s earnings for the financial year ending 2026. Vessel delivery is expected to be concluded in 1Q2026, and net proceeds will be allocated for debt repayment and working capital needs.

The vessel is sold to an Indonesian customer for immediate deployment to support ongoing operations. This transaction aligns with the pickup in offshore activities in Indonesia, where investments in upstream oil and gas (“O&G”) reached a decade-high of US$7.19 billion in 1H2025, up 28.6% y-o-y.

Following the vessel sale, Nam Cheong will manage a total of 36 OSVs with an average vessel age of 9 years. The relatively young fleet provides the Group with a long runway to generate recurring income from charter contracts, or monetisation at opportune times to advance capital recycling.

Globally, the OSV market reached US$4.73 billion in 2024, and is projected to grow at a 7.5% compound annual growth rate (“CAGR”) between 2025 to 2034, reaching US$9.75 billion by 2034.

Commenting on the vessel sale, Mr. Leong Seng Keat, Chief Executive Officer of Nam Cheong said, “I believe that we are at a sweet spot supported by our complementary OSV chartering and shipbuilding businesses. We have the optionality to generate recurring income through the monetisation of our older vessels via ship sales or continue to generate revenue with our chartering services. At the same time, with the resumption of our shipbuilding business, we have the capability of external vessel sales or expanding our ship chartering fleet. We believe this dual-pronged strategy will not only advance growth momentum with stronger cash flows but also unlock shareholder value over time.”

I purchased the stock at $0.72 per share on 5 Sep 2025 and already have an unrealized profit of about 50% in less than 4 months. I will continue holding this position given this positive news. My Chinese New Year angbao has arrived early this year with stocks like Nam Cheong and UOB Kay Hian.

Prescientsuper
https://superphang.blogspot.com

 

XMH Chairman's continued purchases signal strong confidence in company prospects

XMH's Chairman and Managing Director, Tan Tin Yeow, demonstrated continued confidence in the company by purchasing an additional 15,000 shares on 7 January 2026, at $1.53 per share for a total of $22,950. This transaction increased his stake from 64.72% to 64.73%.

The relatively modest size of this purchase likely reflects the stock's limited liquidity rather than a lack of conviction. Given his already substantial majority holding and the constraints of available shares, this insider buying suggests that Mr. Tan would likely acquire more if market conditions permitted.

For existing and prospective investors, this insider activity represents a meaningful vote of confidence. When a chairman with deep operational knowledge continues to increase their position—even incrementally—it often signals positive expectations for the company's future performance. Investors may wish to consider this as a potential indicator for maintaining or building their positions in XMH.


Prescientsuper
https://superphang.blogspot.com

XMH Chairman Doubles Down: $103K Share Purchase Signals Strong Conviction

Following up on my XMH posts from 26 Jun 2025 Potential 3.7-Bagger with 10% Yield

and 27 Jun 2025 XMH validates investment thesis with 34.6% gain in a day

XMH's Chairman and Managing Director, Tan Tin Yeow, just bought 67,600 shares for $103,428 (at $1.53 per share) on 5 Jan 2026, boosting his stake from 64.63% to 64.69%. With conviction like that, something significant could be brewing.

I am looking forward to what unfolds.


Prescientsuper
https://superphang.blogspot.com

YZJ Shipbuilding Gains Momentum: $4 Resistance Looms

 Referring to my earlier post on YZJ Shipbuilding dated 29 Aug 2025:
Yangzijiang Shipbuilding Holds Steady Amid Global Trade Shifts

 and my first post on YZJ dated 16 Jul 2025:
YZJ Shipbuilding: Where Value Meets Growth

The Shanghai Composite Index has surpassed the psychological 4,000-point level on strong volume. Smart money appears to have anticipated or received advance knowledge of YZJ's robust financial results, driving the stock up 9 cents to $3.56 on 6 January 2026, and reaching $3.61, up another 5 cents, by midday today, 7 Jan 2026.

         
YZJ daily chart as of 6 Jan 2026 close

We should see $4 resistance tested soon.

Prescientsuper
https://superphang.blogspot.com

Maximising CPF Returns: Topping Up Your MA to BHS Early Makes Financial Sense

I just topped up my CPF Medical Account (MA) with $3,500 in cash, bringing my balance to the Basic Health Sum (BHS) of $79,000 today, 1 January 2026. Topping up my MA to the BHS at the beginning of each year is beneficial for both tax relief and earning a risk-free 4% annual return.

While it may appear that your MA remains unchanged at the BHS throughout the year, the CPF Board credits 4% interest per annum, which is announced and applied on the last day of the year to your OA, SA (not applicable to CPF members above 55), MA, and RA (not applicable to members below 55). Once the BHS limit is reached, any interest earned on your MA is transferred to your OA.

For CPF members over 55, using cash to top up their MA to the BHS is particularly advantageous, as they have the flexibility to withdraw from their OA when cash is needed. If their liquid funds are limited, withdrawing money from their OA (which earns 2.5% p.a.) and topping up the MA (which earns 4% p.a.) still yields an additional 1.5% annual return, making it a solid second-best option.

Prescientsuper
https://superphang.blogspot.com