Tan Chong International (0693.HK)

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#21
Positive profit alert mainly due to the fair value gain of their investments in the coming FY2014 result. Perhaps, the company should sell always their investments and realize those gains. Distribute bonus/special dividend to shareholders.

"The board of directors of the Company (the "Board") wishes to inform the shareholders of the
Company and potential investors that based on its preliminary review on the relevant unaudited
consolidated management accounts of the Group for the year ended 31 December 2013, it is
expected to record a considerable increase in net profit for the year ended 31 December 2013
as compared with the corresponding period in 2012. The Company is of the view that the
considerable increase in net profit is mainly due to the gain on fair value of listed investments. "

http://infopub.sgx.com/FileOpen/TanChong...eID=288186

vested
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#22
TCIL poised for biggest expansion in decades

Motor company's first target is bigger stake in Japanese car transporter
Published on May 20, 2014 1:27 AM
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TCIL executive director Glenn Tan, whose Singapore-grown company’s profit has quadrupled in the past four years. -- PHOTO: TAN CHONG INTERNATIONAL

By Christopher Tan Senior Correspondent

AS LISTED motor companies go, Tan Chong International (TCIL) is a sleeping giant in the making.

In the past four years, its revenue has grown by 86 per cent to a record HK$9.15 billion (S$1.48 billion), while profit has more than quadrupled to HK$2.06 billion.

Yet, it hardly makes the news. But that is changing.

The Singapore-grown, Hong Kong-listed group is embarking on its biggest expansion plan in decades, starting with an offer to raise its stake in Zero, the largest car transporter in Japan.

It is targeting to own up to 51 per cent of the logistics company, up from 22.91 per cent now.

The offer of 830 yen per share, made last Friday, was a 35 per cent premium over the average closing price of Zero on the Tokyo stock exchange in the preceding week.

The acquisition, if successful, will cost TCIL up to 3.986 billion yen, or about HK$306.6 million.

TCIL executive director Glenn Tan said the acquisition in the Yokohama-based logistics group, which it first bought into in 2004, would support Tan Chong's other expansion plans in the region.

Mr Tan told The Straits Times yesterday that TCIL plans to raise the output of locally assembled Subaru cars from 5,000 units a year to 20,000 units "within the next three to four years".

To do that, it is upgrading its plants in Kuala Lumpur and Bangkok. The former is a plant it shares with Tan Chong Malaysia, while the latter is a Mitsubishi truck assembly set up by TCIL in 2009.

TCIL currently assembles the Subaru XV compact crossover, and will add the Forester SUV from early 2016, Mr Tan said.

He added that the company has acquired two million sq ft of land next to the Thai plant for a warehouse it will set up by 2017.

To help finance the expansion, TCIL has set up a $500 million medium-term notes programme, arranged by HL Bank.

"We want to expand in South-east Asia," Mr Tan said. "This will give us more flexible capital."

TCIL represents the Subaru brand in 10 regional markets, where it sold about 13,500 vehicles last year - up from around 8,000 in 2009, when Mr Tan was appointed executive director.

Its biggest markets are Taiwan and the Philippines. It is also a Subaru dealer in Guangzhou, China.

In Singapore, TCIL distributes Nissan vehicles as well.

Mr Tan said the company shifted its focus to Nissan commercial vehicles as the car market shrank in recent years.

Last year, Nissan emerged as the top light commercial vehicle brand here for the fourth year running. But in passenger vehicles, the brand fell from top three to eighth last year.

Mr Tan said: "We hope to get back to the top few in terms of volume soon."

christan@sph.com.sg
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#23
profit guidance from TCIH for the coming 1/2 yearly result

"The board of directors of the Company (the "Board") wishes to inform the shareholders of the
Company and potential investors that based on its preliminary review on the relevant unaudited
consolidated management accounts of the Group for the six months ended 30 June 2014, it is
expected to record a significant decrease in net profit for the six months ended 30 June 2014 as
compared with the corresponding period in 2013. The Company is of the view that the
significant decrease in net profit was mainly due to the loss on fair value of listed investments as
compared to a gain in the corresponding period in 2013. The Group also suffered from drop in
its business operation in two large market of Thailand and China. In Thailand, it was due to the
political problem since the last quarter of 2013 and in China due to structural change of the
vehicle distribution system from a distributor to a dealer status"

http://www.tanchong.com/downloads/announ...826816.pdf
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#24
Though there was a big dropped in PATMI and EPS (2.9 HK cents versus 76.1 HK cents), Interim Dividend still maintained at 2.5 HK Cents and the forward statement looked good.

The following is what I have extracted from their forward statement in 1HFY2014.


Thailand and China Operation

Although sales revenue in Singapore, Taiwan and Philippine increased, they could not make up for the
sharp drop in the two large market of Thailand and China which decline 63% and 43% respectively.
In Thailand, the political problems since the last quarter of 2013 has dampened consumers and business
confidence, and in particular affected our consumer and capital expenditure types of business demand.
The political situation has since stabilized and initial sales indication gives us confidence that the 2nd
half of 2014 should be better.

In China, since the structural change of the distribution system for Motor Image China from a
Distributor to Dealer status last year, sales and profit revenue declined as a consequence. We expect
sales in the 2nd half to be similar to 1st half.

-
In the manufacturing sector, our auto parts are still in the early stages of trying to gain meaningful
traction with the auto manufacturers in China. We expect to do better in the 2nd half of 2014 because
of new orders from Chang An Auto Company.


Singapore, Taiwan and Philippines Operations
In Singapore we expect double-digit growth in profit and revenue because of the success with our
commercial vehicle in gaining market share.

Also in Taiwan and Philippines we expect to see higher profit and revenue growth.

Thailand, Malaysia and Indonesia CKD Operation
After more than one year of business operation in the Complete Knocked Down (“CKD”) market, we
are still in the early stages of building the sale/service network. Some time is still needed to gain
understanding and make inroads in these markets in the presence of current established and entrenched
market players.


Zero Company Ltd., Japan
On 19th June 2014 the Company successfully acquired 50.88% of the voting rights of Zero Co., Ltd.
This vehicle logistics company has annual revenue of more than US$650 million and is ranked 1st. for
used car (annual market size approximately 7 million units) with 20% market share, and 2nd for new
vehicles (annual market size of approximately 5 million units) with approximately 30% market share.
This company’s expertise in vehicle logistics and human resource management business can help
improve cost competiveness and quality standards in our ASEAN business operation. Their human
resource management business when integrated with our ASEAN business networks can also give rise
to a new scope of business for TCIL. Our next development is to expand with this subsidiary to
maximize the collaborative benefits in ASEAN where we operate. Revenue and profit from Zero Co.,
Ltd will only be consolidated in the 2nd half of 2014.


Prospects
We expect that the second half year will see satisfactory business performance, barring any unforeseen
circumstances.


http://infopub.sgx.com/Apps?A=COW_CorpAn...829574.pdf
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#25
TCIL in joint venture with Japanese Bakery. I can't see how bread and cars are related.Huh

Tan Chong goes into business with a Japanese bakery
Famed Asanoya bakery is opening its first branch outside Japan in joint venture with car business


- See more at: http://www.straitstimes.com/lifestyle/fo...y-20141110

Tan Chong International's car business has led, in a roundabout way, to its first foray into food.

The famed 81-year-old Asanoya bakery from Karuizawa is opening its first branch outside of Japan here in a joint venture with Tan Chong International, which deals in brands such as Nissan and Subaru.

The tie-up is not as odd as it may seem, says Tan Chong's executive director Glenn Tan. He says his father knows the uncle of Asanoya's chief executive officer, Ms Maki Asano, 45. Her uncle has a trucking business and got to know the Tans.

Calling the trend for Japanese bakeries the "hot thing now", Mr Tan, 36, decided to tie up with a brand familiar to his family.
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#26
jepun fancy

here it goes - at 15 queen street try it

Tan Chong International's car business has led, in a roundabout way, to its first foray into food.

The famed 81-year-old Asanoya bakery from Karuizawa is opening its first branch outside of Japan here in a joint venture with Tan Chong International, which deals in brands such as Nissan and Subaru.

The tie-up is not as odd as it may seem, says Tan Chong's executive director Glenn Tan.

He says his father knows the uncle of Asanoya's chief executive officer, Ms Maki Asano, 45. Her uncle has a trucking business and got to know the Tans.

Calling the trend for Japanese bakeries the "hot thing now", Mr Tan, 36, decided to tie up with a brand familiar to his family.

He says: "I think it is a good fit for both parties as they want to find the right partner, while we understand the Japanese culture since we have long-term working relationships with the Japanese."

Ms Asano, who had no plans to expand before Tan Chong International approached her, says that she has turned down requests from Thailand and South Korea. She is in town for the opening of the 80-seat Asanoya on Saturday.

She says: "The market here is very mature with diversified cultures. I hope Asanoya will work here. Unlike other bakeries, we do not bake with frozen dough."

The 5,000 sq ft space that Asanoya occupies used to be a car showroom before it became a restaurant.

Bread lovers can look forward to a wide variety of stone-oven-baked loaves and buns, such as its signature fruit rye, and Karuizawa Raisin, which is 55cm in diameter and weighs 1.3kg. It is sliced upon order and charged by weight. There is also a small selection of sandwiches, quiches and salads.

The shop also has a small retail section selling products such as olive oils and pasta.

More savoury food options will be rolled out in the future, with recipes from Asanoya's full-service restaurant, Chez Marie, in Japan.

Asanoya's Japanese chef and consultant Naomichi Kobayashi, 47, is also in town to ensure the smooth operations of the bakery here.

And it is Malaysian head baker Kenny Wong, 37, who has five years of working experience with Asanoya in Japan, who heads the kitchen in Singapore.

To fit in with the establishments in the vicinity such as the Singapore Art Museum, National Library and National Design Centre, Mr Tan calls the outlet a "blank canvas" that artists can use to showcase their works.

Back in 1933, Asanoya did not start out as a bakery because it was "not popular" to eat breads in Japan yet, says Ms Asano, whose grandfather founded the brand. Instead, it was located in Kojimachi, Tokyo, and sold Western liquor, groceries and bread.

In 1940, the move to Karuizawa in Nagano prefecture, was strategic, as the place was a hot spot for tourists and visiting diplomats. When another bakery opened in 1972 in Yotsuya, Shinjuku District, Asanoya realised the demand for bread and improved its bread-making facilities. Its breads gained popularity and, in 1983, the Karuizawa shop was remodelled to cater to the influx of tourists.

Now, there are 10 stores across Japan, as well as a central kitchen which produces bread to supply to hotels and restaurants.

Ms Asano, who used to work in the paper pulp division of another Japanese company, joined the family business in 1998 and became the chief executive in 2006.

She is also a wine adviser with the Japan Sommelier Association and her husband is head sommelier of the three-Michelin-starred L'Osier in Tokyo.

She says: "My father (who was the previous CEO) suggested, or rather, ordered me to join the company. He requested a lot more than I expected. But now that we have expanded, he is very happy."

Both she and Mr Tan are cautious about rapid expansion in Singapore and overseas.

Mr Tan is looking to open outlets on his company's premises here, such as its car service centre in Bukit Timah. He does not rule out getting more food and beverage brands under the company too.

Admitting that it has been a "steep learning curve" so far, he says candidly: "Tan Chong has built its reputation for a long time. It hasn't been easy but I will do whatever it takes.

"I don't think I could eat sushi every day, but I can eat Japanese bread every day. When cars come to the showroom, I can only sit in them. I can't eat them."

Asanoya opens on Saturday at Wilby Central, 15 Queen Street, tel: 6703-8703.

Opening hours are from 10am to 8pm (Monday to Thursday), 10am to 11pm (Friday), 8am to 11pm (Saturday), and 8am to 8pm (Sunday).

FIVE PICKS

FRUIT RYE

What: Asanoya's signature rye bread features a mixture of orange peel, rum-infused raisins, crushed walnuts and almonds.

Price: $6.50 (half loaf), $12.50 (whole loaf)

KARUIZAWA GREEN TEA

What: This loaf is marbled with matcha and white chocolate. There is also a blueberry version. The bread is sliced upon order.

Price: $2.60 for 100g

TEA BREAD

What: Fragrant Earl Grey tea leaves perfume the dough, which is also flavoured with blueberry or orange peel. This is a good breakfast or tea loaf that pairs well with jams.

Price: $4.80 a loaf

TOMATO & MOZZARELLA

What: You do not often get bread that comes with a cautionary note. This one says: "Cherry tomato centre bursts easily." The crispy bread has a layer of mozzarella cheese inside as well as two whole juicy cherry tomatoes. Price: $2.60

MAPLE WALNUT PRETZEL

What: Shaped like a heart, this bread features Asanoya's housemade maple cream. Best eaten warm.

Price: $3.20
- See more at: http://www.soshiok.com/content/tan-chong...siQJe.dpuf
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#27
Are the Tan family selling part of this company ?

Tan Eng Soon was listed having 78% interest in company and stake was reduced to 27% on 3 Nov 2014. ( info from aastocks website )
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#28
For those interested, I noticed there is a sponsored documentary on Tan Chong this Friday 830pm. If anyone get to catch it, can share some details and thoughts? I will be on flight that time so will surely miss it.

Not vested

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#29
(10-06-2015, 08:05 AM)thor666 Wrote: For those interested, I noticed there is a sponsored documentary on Tan Chong this Friday 830pm. If anyone get to catch it, can share some details and thoughts? I will be on flight that time so will surely miss it.

What is the name of the program and which channel is it on?

I dun think its any of the local channels.
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#30
(10-06-2015, 08:14 PM)lonewolf Wrote:
(10-06-2015, 08:05 AM)thor666 Wrote: For those interested, I noticed there is a sponsored documentary on Tan Chong this Friday 830pm. If anyone get to catch it, can share some details and thoughts? I will be on flight that time so will surely miss it.

What is the name of the program and which channel is it on?

I dun think its any of the local channels.
It's on channelnewsasia. Sorry for missing out.

(i can't find schedule on cna, but distinctly remember the trailer)

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