Spindex Industries

(11-02-2015, 06:04 PM)LocalOptimal Wrote: Results released.

Profits increased YoY 50+% to 6.9m

Despite a dividend payout of 2.5m and a 4m capex, cashflow only dipped by 1m.

Great set of results.

Happily vested.

Looks like low oil price is helping to increase auto sales in the states and boost Spindex earnings. Should have no problem hitting 10cents EPS this year, with the ridiculous cash pile unless they are thinking of spending on new capacity, doubling of the dividend is very possible taking a 50% payout rate, see management steady or not.

This should be a prosperous year, time the analyst take note

Well, this company has done well for many years , has a high cash pile and pays good dividends. Reason its is not covered by analysts is due to the lack of liquidity not because they do not know of its merits. It holds good value for us, so doesn't really matter if its covered or not, especially these "low prices'" will allow us to accumulate more isn't it?. And... probably the analysts own them themselves

I was revisiting my watchlist and came across Spindex. While the share price for the past year has been stagnant, it's earnings keep climbing up. Checked the latest half year result and it looked good. Full year EPS could be 10c and with the current price of 55c, PER is only 5~6??

While Innovalues has been market darling, Spindex is quietly growing behind the scene. Both Spindex and Innovalues' Automotive businesses are growing 15% CAGR since 2010 and both have been growing in China. (Not sure if I'm right to compare with Innovalues though).

I found peer comparison from AmFraser's report to Innovalues (Spindex is one of them) and saw peers average PER is around 19. Okay 19 PER is too optimistic, but let's say a conservative 8-10 PER price could be $0.8 - $1???

(decided to reinvest)

Based on the company's track record, without doubt Spindex's business is like a steady ship, churning out consistent business growth and profit increase in the last few years. Mainly because of its small issued share base of only 115.365m shares, Spindex - with a current market cap of only $64.0m (based on the last done share price of $0.555) - as an illiquid counter has unjustifiably suffered a grossly underpriced situation so far.

Innovalues on the other hand partly because of Koh Boon Hwee's engagement as a shareholder (with a 6.81% stake) has caught the eyes of many more investors/punters, and now has a market cap of $297.2m (based on last done share price of $0.92, and the 323.08m issued shares) - equivalent to an historical PER of 18.8x, based on FY14 (ended 31Dec14)'s NP of $15.811m. However, one should not forget that Innovalues actually suffered from over-gearing in FY08 and FY09, and financial losses in FY09 and FY11.

I guess it is timely to relook at Spindex's 1H (ended 31Dec14) result closely.....
http://infopub.sgx.com/FileOpen/SpindexI...eID=334510

Quite obviously, Mr Market has been underpricing Spindex by a big margin - when compared with its latest 31Dec14 NAV/share of $0.6852 and annualised EPS forecast of $0.1024 - for a long time. Would Mr Market be prepared to do his usual trick to give this conservatively managed company a fair market valuation?

(06-06-2015, 12:26 AM)dydx Wrote: Based on the company's track record, without doubt Spindex's business is like a steady ship, churning out consistent business growth and profit increase in the last few years. Mainly because of its small issued share base of only 115.365m shares, Spindex - with a current market cap of only $64.0m (based on the last done share price of $0.555) - as an illiquid counter has unjustifiably suffered a grossly underpriced situation so far.

Innovalues on the other hand partly because of Koh Boon Hwee's engagement as a shareholder (with a 6.81% stake) has caught the eyes of many more investors/punters, and now has a market cap of $297.2m (based on last done share price of $0.92, and the 323.08m issued shares) - equivalent to an historical PER of 18.8x, based on FY14 (ended 31Dec14)'s NP of $15.811m. However, one should not forget that Innovalues actually suffered from over-gearing in FY08 and FY09, and financial losses in FY09 and FY11.

I guess it is timely to relook at Spindex's 1H (ended 31Dec14) result closely.....
http://infopub.sgx.com/FileOpen/SpindexI...eID=334510

Quite obviously, Mr Market has been underpricing Spindex by a big margin - when compared with its latest 31Dec14 NAV/share of $0.6852 and annualised EPS forecast of $0.1024 - for a long time. Would Mr Market be prepared to do his usual trick to give this conservatively managed company a fair market valuation?

I remember last year I was choosing between innovalues and spindex when innovalues was still trading at around 20+c. I decided to go with spindex with better track record. After sometime I divested to move to different company. But now I'm back for good and happy it's still there while Mr. Market hasn't noticed yet.

Aside from earnings, balance sheet is rock solid with negligible debt. FCF is also very good and we could expect better dividends ahead, perhaps 5%+ yield on current price?? I also expect an improved ROE of around 15%!!

Bought some more today. I remain bullish on this counter as I'm having difficulty to think of what could get wrong specually their FY result will be out soon. Could somebody pull down my expectations pls?

Good pick. Innovalues’ customers are world-leading OEM makers of safety, fuel-saving and emission-control automotive parts, such as Sensata and Hilite. Does any buddies know whether Spindex also supplies safety, fuel-saving and/ or emission-control automotive parts? Such automotive parts are in demand due to tighter government regulations.
Do note that some major shareholders in the top 20 list have reduced their shareholdings according to annual report as at 16 Sep 14.
Can also consider Micro-Mechanics which is much easier to purchase these two days unlike in the past.

good observation, it's very easy to buy shares recently... not just MM.

reminding myself to be careful...

Love Compassion

Today (2Jul15) Spindex closed at a 5-year high of $0.63. It appears there are investors buying in anticipation of the coming full-year results for FY15 (ended 30Jun15), which will be released by end-Aug.

(02-07-2015, 09:26 PM)dydx Wrote: Today (2Jul15) Spindex closed at a 5-year high of $0.63. It appears there are investors buying in anticipation of the coming full-year results for FY15 (ended 30Jun15), which will be released by end-Aug.

Slowly but surely...