Sunright

Result of associate KESM

http://www.bursamalaysia.com/market/list..._code=9334

Even the associate(KESM) looks like a good buy.......Positive cashflow and cash rich.....

Sunright's share price is hammered because of its interest in KESM

http://nexttrade.blogspot.sg/2013/09/kes...stock.html

(edited)

FY2013 Result

http://infopub.sgx.com/FileOpen/SRResult...eID=257581

http://infopub.sgx.com/FileOpen/SRPressR...eID=257582

Gradual improvement of the semiconductor industry......

Result of associate KESM ( share price of KESM has been inching up from $1.7 to $2.04 as of today)

http://www.bursamalaysia.com/market/list..._code=9334

Associate KESM's share price going up the roof....result must be good or something else

http://www.bursamalaysia.com/market/list..._code=9334

http://www.bursamalaysia.com/market/secu...t=K&page=1

KESM surges with volume today. Result for 2Q2014 should be out soon

http://www.bursamalaysia.com/market/list..._code=9334

1h2014 result
http://infopub.sgx.com/FileOpen/SRResult...eID=288216

surprisingly it is still loss-making in 1h2014.

KESM's share price shoots up today......
http://www.bursamalaysia.com/market/list..._code=9334

Sunright 1h2014 Balance sheet

Non Current Assets = $63.3m
Current Assets = $28.3m
Non Current Liabilities = $5.8m
Current Liablities = $14.6m
Total Equity = $71.2m
Number of shares = 122.806m
NAV = 58 cents

Non Current Assets consist of $57m worth of associates of which it includes KESM Industries Berhad (Traded in KLSE) , KESM Test, KESP Sdn Bhd and KESM Industries (Tianjin).

As of 31 July 2013, fair value of investment in associates for which there is a published price quotation is $15.025m (KESM)

NTA of KESM as of 31 July 2013 is RM$5.4732. Sunright owns 48% or 20.8m shares of KESM. Taking a currency exchange rate of 1 Sing Dollar for 2.58 Malaysian Ringgit. The value on book is $44.1m which meant the other unquoted associates are worth around $13m at cost.....

One reason why Sunright is trading at a discount because the fair value of KESM is less than book.

At today share price of RM$3.10 for KESM, Sunright's stake in KESM would be worth around $25m. Let's give a nil value for the other associates so at today valuation, Sunright would have to write down $32m ($57m-$25m)

That meant total equity = $39.2m ($71.2m - $32m)
or NAV = 32 cents.

(Market value of the company = $15.96m. Cash received from sale =$13.23m. Dividend from KESM Test = $3.926m. Total cash received = $13.23m +$3.926m = $17.156m > Market value of the company. Hence market value of 48.41% stake in Malaysia listed associate KESM is negative ^^^^^)


The aggregate value of the Consideration to be received by the Group =
S$13.23 million

The Company’s market capitalisation based on the total number of issued
shares excluding treasury shares multiplied by the weighted average price
of such shares transacted on the market day preceding the date of the SSA
= S$15.96 million.

Relative figure = 82.89%



For clarification purposes, the above proforma effects have not taken into account the impact of the interim dividend for the financial year ending 31 July 2015 declared by KESM Test on 5 February 2015 amounting to RM30.00 million, of which the Company’s proportionate share is RM10.39 million (approximately S$3,926,000). Had the interim dividend been accounted for, the net tangible assets and net tangible assets per Share would be S$75,063,000 and S$0.61 respectively.

THE PROPOSED DISPOSAL OF APPROXIMATELY 34.62% OF THE ISSUED AND PAID-UP SHARE CAPITAL OF KESM TEST (M) SDN BHD TO KESM INDUSTRIES BERHAD
http://infopub.sgx.com/FileOpen/Annt-Pro...eID=335045


Sunright Streamlines Business
http://infopub.sgx.com/FileOpen/Sunright...eID=335046

This looks like a move to transfer money out of malaysia to singapore, much like what PNE Ind did with PNE PCB Bhd.

It seems historically KESM has been very stingy with dividends despite good cash flow and trading even below cash value now.

Good thing the build up of cash is being transferred over to parent.

Whether or not a special dividend is finally announced by sunright is another question but unlikely not given company is in net cash position but announced only small dividend.

The share price being low is probably reflection of losses and declining revenue last year though company might be in the process of a turnaround.

Employee benefit expense of 13.6m compared to 23.15m (raw materials/cost of sales) seems really high, management paying themselves handsomely at expense of OPMI?