By VEN SREENIVASAN

AS WARREN Buffett once observed, the trick to investing successfully is to spot winners early enough in the game, then enjoy the ride.

In the case of Singapore, many of these 'winners' tend to be companies with a strong global presence. And it is not just the 'big boys' like Keppel Group, SembCorp, Singapore Airlines and CapitaLand which have proven their ability to hold their own against the biggest and the best around the world. There are also numerous mid-caps like Tat Hong and Boustead Singapore, whose global footprints have been growing steadily over the past decade. And so have their stock prices.

One company which looks poised to join the ranks of these home-grown global plays is mainboard-listed Inter-Roller Engineering, which began as a factory automation and materials supplier in the 1980s. Its big break came when it landed the job of installing the baggage handling system for Changi Airport almost three decades ago.

Since then, there has been no turning back for this company. Today, it is one of the world's most prominent players in global airport logistics systems, with a footprint spread across some of the fastest growing markets worldwide. Its computerised luggage handling systems and conveyor belt controls are found in airports in 25 countries on six continents. It is also involved in cargo handling and in-flight catering, though these account for only 10 per cent of turnover.

What is interesting is that this is a company which has trumped giants like Germany's Siemens and Britain's FKI to clinch multi-million-dollar airport contracts in Dubai, Shanghai's Pudong, Bangkok, Cairo, Arizona, Panama City, and numerous other places around the world. Its latest $16.3 million baggage handling systems contract in Winnipeg (Canada) illustrates the company's capacity to make inroads into far-flung markets.

It has also been making steady progress in some of the world's fastest growing aviation markets. For example, it is already the biggest foreign airport logistics player in China, with over two dozen projects. China accounts for 46 per cent of its turnover, while the Middle East accounts for 27 per cent.

Equally impressive is the company's turnover, which has been growing at close to 50 per cent every year over the past four years. Last year, its turnover grew 46 per cent to $147.6 million, while net earnings rose 53 per cent to $26 million.

And with global air traffic growing at double-digit rates in key markets, the pipeline of airport upgrading projects for Inter-Roller looks set to remain strong.

Currently, Inter-Roller has a total order book of $100 million. This includes $61 million secured just this year alone - compared with $56 million for the whole of 2006. Given the rate at which the company is securing new projects, its 2007 order book should be significantly higher.

Though net profit margin has also risen steadily - from 12.4 per cent in FY2003 to 17.4 per cent in FY2006 - the company receives rather scant analyst coverage.

But in a report earlier this year, Merrill Lynch noted that Inter-Roller had 'succeeded admirably' in penetrating the international markets for aviation infrastructure projects. It reiterated this view in a May 15 report titled 'Taking Off', which cited the company's steadily growing order book and new contracts.

'The group is currently targeting projects in Qatar, Abu Dhabi, Saudi Arabia, Oman, Beijing, Shanghai, Guangzhou, Shenzhen, Kunming and Vietnam,' said the report. The investment house had a price target of $1.59 on the stock.

Indeed, with global air passenger traffic continuing to show robust growth, and Asia alone expected to chalk up over US$60 billion in aviation and airport infrastructure projects over the next 10 years, Inter-Roller is sitting pretty. It's just a matter of time before this company is duly recognised by investors.

《The Business Times》