Nobel Design Holdings

The insiders of Nobel Design Holdings have been heavily buying back shares consistently over the last couple years.

The fact that they are currently trading below liquidation value for a very profitable business seems quite ridiculous. I am sure insiders realize this too hence their confidence in the heavy buy back. Their P/B is 0.684, PE is 4. They have also been consistently paying out a dividend every year.


(vested)

Recently the auditors of Nobel Design did not continue their appointment, is this any cause for concern? It's balance sheet looks rock solid and it's hotel is topping end of this year.

Nobel Design seems to be barely affected by the by the rout since I last posted 6 months ago. They seem quite resilient as their share price has been about the same since June while the STI has dropped more than 15%. They continue to be very profitable. It seems like a matter of time for this solid business before they hit at least their NCAV in price.

Hi,

Can someone with better accounting knowledge help to enlighten me?

FY 2014 balance sheet shows a debt of 12 mil + 0.47 mil + 64.2 mil (76.7 mil).
Q1 2015 balance sheet shows a debt of 10.9 + 0.362 mil + 10.1 mil (21.4 mil).
You can a reduction of 55 mil of debt from Fy 2014 to Q1 2015

If i look at the Q1 2015's cash flow statement, I cannot see a corresponding item in the repayment of bank borrowings.
How do I reconcile this?

(04-01-2016, 12:51 PM)changwk Wrote: Hi,

Can someone with better accounting knowledge help to enlighten me?

FY 2014 balance sheet shows a debt of 12 mil + 0.47 mil + 64.2 mil (76.7 mil).
Q1 2015 balance sheet shows a debt of 10.9 + 0.362 mil + 10.1 mil (21.4 mil).
You can a reduction of 55 mil of debt from Fy 2014 to Q1 2015

If i look at the Q1 2015's cash flow statement, I cannot see a corresponding item in the repayment of bank borrowings.
How do I reconcile this?

If you look at the amended statement released on 21 May together with their 1q15 results

http://infopub.sgx.com/Apps?A=COW_CorpAn...5-2015.pdf

the 64.2 mil is no longer there.

It is likely this is the debt held by its subsidiary and reclassified.

(04-01-2016, 02:56 PM)BlueKelah Wrote:

(04-01-2016, 12:51 PM)changwk Wrote: Hi,

Can someone with better accounting knowledge help to enlighten me?

FY 2014 balance sheet shows a debt of 12 mil + 0.47 mil + 64.2 mil (76.7 mil).
Q1 2015 balance sheet shows a debt of 10.9 + 0.362 mil + 10.1 mil (21.4 mil).
You can a reduction of 55 mil of debt from Fy 2014 to Q1 2015

If i look at the Q1 2015's cash flow statement, I cannot see a corresponding item in the repayment of bank borrowings.
How do I reconcile this?

If you look at the amended statement released on 21 May together with their 1q15 results

http://infopub.sgx.com/Apps?A=COW_CorpAn...5-2015.pdf

the 64.2 mil is no longer there.

It is likely this is the debt held by its subsidiary and reclassified.

 
http://infopub.sgx.com/FileOpen/Nobel-An...eID=352870
 
There are differences between a “subsidiary”, “associate” and “joint arrangement” – hence their accounting treatments.
 
There are two different methods of accounting for interests in joint arrangements:
 
a)  Joint Operation
b)  Joint Venture
 
As explained by the above statement, it was the result of accounting reclassification of certain “joint arrangements” from “Joint Operation” to “Joint Venture” – which the management reckon more appropriately reflect the rights and obligations of the Company under such “joint arrangements”.  
 
It was not due to any reclassification of debt held by subsidiary.
______________________________________________________________________________________________________________________________________

Quote:The Board of Directors of Nobel Design Holdings Ltd (the “Company”) wishes to announce that the Company has been informed that the dispute between the Company’s founder and former Chairman, Mr Bert Choong, and the current directors, Mr Terence Goon, Ms Jean Wee, Mr Adrian Chan and Dr Teh Ban Lian in Suit No. 174 of 2015 (the “Suit”) has been amicably resolved. The Parties in the Suit have withdrawn their claims and allegations against each other in the Suit.

http://infopub.sgx.com/FileOpen/Nobel-An...eID=420049

CEO bought back S$468,750.00 worth of shares today.

http://infopub.sgx.com/FileOpen/_Nobel-F...eID=420667

Even more huge insider share buybacks since November up till yesterday (14 Dec).

(15-12-2016, 01:12 PM)beau Wrote: Even more huge insider share buybacks since November up till yesterday (14 Dec).

The transactions so far this month (Dec 2016) aren't of insiders buying back shares - in fact 2 non-executive and independent directors sold part of their holdings. The other 3 transactions were of insiders exercising their options at an exercise price of $0.31.

Some independent, non-executive directors also sold shares in the market back in November, at $0.41-$0.42. That month, there was also an off-market deal where 3m of a substantial shareholder's shares were sold to the CEO for $0.38/share.

What one may glean from these transactions is that insiders think the shares are worth more than $0.31 apiece. We can't say either way about whether they think the shares are fairly valued at $0.40, because while 3 insiders have sold some shares at this price, the ones who exercised their options at $0.31 haven't (yet), which may indicate that they think the shares are worth more than they currently are.