HupSteel

(28-08-2015, 09:31 AM)Curiousparty Wrote: May I check how much will the recurring income (after deducting for expenses) add to EPS?tks.

You can kind of figure it out by looking at comparable. Based on my property valuation, I believe the company could receive roughly $3.75m to $4.5 million or 0.6c-0.75c per share. If the company dividends it out, that is a 4%-5% accretive dividends.

[Image: hupsteel-chart.jpg]

Mkt. Cap.: 92.517m
Total Liabilities + NCI :7,377
Cash: 44,279
Mkt Price: 0.15
P/B: 0.5
P/E: nil   (negative earning for FY 15)
P/E(FY14): 34
Div Yield(FY15): 0.66%(first time div got cut)
Payout: nil  negative earning for FY 15)
Adj NAV: 0.230 [MOS: 53%]
Debt to Equity: 0.002

EV/PBIT(FY15): Negative Earning (earning fluctuates quite a lot unable hence won’t be fair to use previous earning)
EV/PBIT(FY14): 17.82!
NCAV: 0.174 [mkt price trading at 13.91% below NCAV]
Graham’s NetNet(actual formula): 0.127 [mkt price trading at 18.01% ABOVE NCAV]

Another stock trading below NCAV.

I just wrote a post about it over here:

http://www.giraffevalue.com/investing/hu...-intended/

Conclusion:

There is cash burn rate for this company. But its huge hard assets make it as an attractive little monster to my portfolio.

I like that it is trading below its NCAV, theoretically even if the stock goes bust you still make money. And never forget that this does not include the freebie you got by owning the entire business[>90% consist of leasehold in PPE and Investment property]. And the best part is maybe that F/V of investment property is really $83M!

This stock has been in my watch list since April I think, I was reluctant to invest because of its really high P/E in other words, paying a lot for its earning not because the price is high but because the earnings is damn low. And the recent $0.05 drops gives me this opportunity to enter.

(06-09-2015, 02:08 PM)GiraffeValue Wrote: [Image: hupsteel-chart.jpg]

Mkt. Cap.: 92.517m
Total Liabilities + NCI :7,377
Cash: 44,279
Mkt Price: 0.15
P/B: 0.5
P/E: nil   (negative earning for FY 15)
P/E(FY14): 34
Div Yield(FY15): 0.66%(first time div got cut)
Payout: nil  negative earning for FY 15)
Adj NAV: 0.230 [MOS: 53%]
Debt to Equity: 0.002

EV/PBIT(FY15): Negative Earning (earning fluctuates quite a lot unable hence won’t be fair to use previous earning)
EV/PBIT(FY14): 17.82!
NCAV: 0.174 [mkt price trading at 13.91% below NCAV]
Graham’s NetNet(actual formula): 0.127 [mkt price trading at 18.01% ABOVE NCAV]

Another stock trading below NCAV.

I just wrote a post about it over here:

http://www.giraffevalue.com/investing/hu...-intended/

Conclusion:

There is cash burn rate for this company. But its huge hard assets make it as an attractive little monster to my portfolio.

I like that it is trading below its NCAV, theoretically even if the stock goes bust you still make money. And never forget that this does not include the freebie you got by owning the entire business[>90% consist of leasehold in PPE and Investment property]. And the best part is maybe that F/V of investment property is really $83M!

This stock has been in my watch list since April I think, I was reluctant to invest because of its really high P/E in other words, paying a lot for its earning not because the price is high but because the earnings is damn low. And the recent $0.05 drops gives me this opportunity to enter.

Insightful post. But I think you have discounted the fact that as a family owned business, they could easily turn this into a value trap.thats not to say it will happen, but you never know. That said, I have been vested in this for quite awhile now.

Agreed, but weighing against that as a family firm, they also won't have a tendency to run the company to the ground with reckless activities. Works both ways.

it's a slow 10-20 years transformation...with small dividend annually, so unless the steel market picks up, else it's really just ...slow!
collect slowly lah...

Options plan got shot down by minorities with 47.5 mil shares against it:

   

http://infopub.sgx.com/FileOpen/EGM2_Res...eID=375667

Minorities not happy i think with the recent dividend cut to as low as normal bank savings rate. The management sh have proposed this last year when they maintained the 1 ct dividend .

(29-10-2015, 11:47 PM)smallcaps Wrote: Options plan got shot down by minorities with 47.5 mil shares against it:



http://infopub.sgx.com/FileOpen/EGM2_Res...eID=375667

Isnt it plain obvious that a small group of people are trying to take advantage of minority shareholders when the share price is low now? Luckily it was shot down by minorities.

This is a good enough happening to label this family as opmi unfriendly mgmt now.

Bad move to try and squeeze money from a company thats already doing badly.

sent from my Galaxy Tab S

(28-08-2015, 10:38 AM)BlueDogMeow Wrote: You can kind of figure it out by looking at comparable. Based on my property valuation, I believe the company could receive roughly $3.75m to $4.5 million or 0.6c-0.75c per share. If the company dividends it out, that is a 4%-5% accretive dividends.

Hi,

Can you share how did you derive 0.6c - 0.75c per share?

I only manage to derive 0.3cents per share.

Next door 2 Kim Chuan Drive for a rough estimate, rental is going for $2.50psf (neg)

http://www.commercialguru.com.sg/listing...ion-centre

6KC2 floor area : 7,690sqm = 82,774 sqft
assuming 80% rented out : 82,774 x $2.50 x 12mths = $1.98m
EPS = $1.98m / 616,777,610 (no of issued shared less treasury) =  0.3cents

Cheers