TeckWah

Amazing and resilient result. Very strong roe, we should see a higher contribution from more rentals in Pixel Red going forward. Thomas has his whole family working for teckwah. Looks like the recent buy up to almost 20years high could be due to some new leakage(just guessing). See how it goes on Monday, looks like this div increase to 2cts will push teckwah higher from here..

Teckwah seems to do well operationally. Even at recent price, the stock does not look expensive given that it trades at 0.718x NAV and gives a yield of 4.44% based on current price, with 1/4 of its share price backed by cash. Gearing stood at a low of 9.2%.

However, I think they need to improve on their investor relations.

Management needs to address the issue of liquidity as well as a lack of media attention. It has very low trading volume and no media covers them. Their latest full year result is not even picked up by Business Times or The Straits Time. I think no analyst covers them.

(27-02-2017, 10:55 AM)gutman Wrote: Teckwah seems to do well operationally. Even at recent price, the stock does not look expensive given that it trades at  0.718x NAV and gives a yield of 4.44% based on current price, with 1/4 of its share price backed by cash. Gearing stood at a low of 9.2%.

However, I think they need to improve on their investor relations.

Management needs to address the issue of liquidity as well as a lack of media attention. It has very low trading volume and no media covers them. Their latest full year result is not even picked up by Business Times or The Straits Time. I think no analyst covers them.

Wait lah... Wait till they collect enough cheap ones. Then some major reports will be released. Who said nobody follows. Lots of them aware of it because of Chua Tian Poh involvement. For me, I prefer they stay low profile for now. I am still not satisfied with my holding size yet.

(27-02-2017, 11:27 AM)luckystar Wrote:

(27-02-2017, 10:55 AM)gutman Wrote: Teckwah seems to do well operationally. Even at recent price, the stock does not look expensive given that it trades at  0.718x NAV and gives a yield of 4.44% based on current price, with 1/4 of its share price backed by cash. Gearing stood at a low of 9.2%.

However, I think they need to improve on their investor relations.

Management needs to address the issue of liquidity as well as a lack of media attention. It has very low trading volume and no media covers them. Their latest full year result is not even picked up by Business Times or The Straits Time. I think no analyst covers them.

Wait lah... Wait till they collect enough cheap ones. Then some major reports will be released. Who said nobody follows. Lots of them aware of it because of Chua Tian Poh involvement. For me, I prefer they stay low profile for now. I am still not satisfied with my holding size yet.

Just had a closer look at the results.

For Teckwah, IMO the main reason for increase in FY16 profits was that the cost for raw materials and consumables drop from 63m to 52m, Since revenue was flat, it probably means raw material costs could have been cheaper with commodity downturn and oil price downturn. This was more than enough to offset small increase in admin costs and other expenses such that PBIT was 3m more than last year.

Whilst the growth in non-print logistics business is encouraging, I do not think logistics sector will be booming anytime soon.

Meanwhile the Print business is unlikely to do well this year and could be just flat or further downturn.

Dun think the extra office space at Pixel Red will be adding any significant amount to earnings either.


With quite a few recent privatisations, there is also a recent obsession with companies that look like they may get privatised.  Teckwah does have chance to be privatised as u can see top 20 already owns 71%, most of it by Chua and Co. but there is not much net cash on the table. So not much profit for the owner to take it private now. Teckwah had a sh**tload of net cash before pixel red and they didn't bother to privatise back then.

Teckwah mgt. will likely just continue to build up its cash reserve in these uncertain times as they have always been conservative and probably pay down debt until it reaches near zero again. So for the next 3-5 years at least this is probably as good as it gets. 

It is already trading at recent highs, ANY dip in performance of its China operations or earnings next quarter will likely see it going down pretty quickly. For a measly 4%+ div yield and 25% net cash to Mcap, won't be in a rush to load up at all.

-n v on radar-

Took a cursory look at it. I kind of agree with BKelah assessment. This kind of business is very much driven by raw materials on it's bottomline. A very tough business to be in, no competitive advantage at all. A -ve on Teckwah is that there are too many family members in the company. Need some professional managers so that the pressure to perform or gets fired is there!

Anyway downside is low and so is upside. Not likely that this co will be privatised as there is not that enough meat to do so.

Not vested.

(27-02-2017, 02:29 PM)Jacmar Wrote: Took a cursory look at it. I kind of agree with BKelah assessment. This kind of business is very much driven by raw materials on it's bottomline. A very tough business to be in, no competitive advantage at all. 

Is Teckwah's Print business similar to that of a typical industrial printer producing brochures, books, magazines, newspapers, and consuming a lot of paper and ink, and is required to operate on large print-runs in order to make money? I don't believe so. In fact, Teckwah's Print business is mainly engaged in designing and producing packaging materials for mostly consumer products including pharmaceuticals, which increasingly are produced in volume in Singapore and exported to the world. I suppose when compared with say books and magazines, these packaging materials use much less paper as raw material, and require more secondary processing like surface treatment, die-cutting, box forming, etc., which means higher value-add and pricing. I suppose that is why Teckwah's Print business is consistently profitable, and the related customer relationships have supported the steady growth of Teckwah's Non-Print business (i.e. specialist logistics services). 

So I suppose Teckwah's business does have some advantages, and the group's positive financial performance over the years affirms this as well.

(27-02-2017, 04:19 PM)dydx Wrote:

(27-02-2017, 02:29 PM)Jacmar Wrote: Took a cursory look at it. I kind of agree with BKelah assessment. This kind of business is very much driven by raw materials on it's bottomline. A very tough business to be in, no competitive advantage at all. 

Is Teckwah's Print business similar to that of a typical industrial printer producing brochures, books, magazines, newspapers, and consuming a lot of paper and ink, and is required to operate on large print-runs in order to make money? I don't believe so. In fact, Teckwah's Print business is mainly engaged in designing and producing packaging materials for mostly consumer products including pharmaceuticals, which increasingly are produced in volume in Singapore and exported to the world. I suppose when compared with say books and magazines, these packaging materials use much less paper as raw material, and require more secondary processing like surface treatment, die-cutting, box forming, etc., which means higher value-add and pricing. I suppose that is why Teckwah's Print business is consistently profitable, and the related customer relationships have supported the steady growth of Teckwah's Non-Print business (i.e. specialist logistics services). 

So I suppose Teckwah's business does have some advantages, and the group's positive financial performance over the years affirms this as well.

I agree with dydx analysis. A cursory look at this business will get you nowhere, and trust me, I also looked at it in a cursory manner before, and gosh was I wrong. Look deeper. It is not your normal printing business. And since then, I loaded up on this stock more heavily. 

I own this stock for its long term stability and ability to continue to make money through various innovations. I am looking for more growth from this company. I believe it is a long term story. And I am paid to wait (thankfully, my entry cost very low. My dividend yield is very high)

(28-02-2017, 11:22 PM)luckystar Wrote:

(27-02-2017, 04:19 PM)dydx Wrote:

(27-02-2017, 02:29 PM)Jacmar Wrote: Took a cursory look at it. I kind of agree with BKelah assessment. This kind of business is very much driven by raw materials on it's bottomline. A very tough business to be in, no competitive advantage at all. 

Is Teckwah's Print business similar to that of a typical industrial printer producing brochures, books, magazines, newspapers, and consuming a lot of paper and ink, and is required to operate on large print-runs in order to make money? I don't believe so. In fact, Teckwah's Print business is mainly engaged in designing and producing packaging materials for mostly consumer products including pharmaceuticals, which increasingly are produced in volume in Singapore and exported to the world. I suppose when compared with say books and magazines, these packaging materials use much less paper as raw material, and require more secondary processing like surface treatment, die-cutting, box forming, etc., which means higher value-add and pricing. I suppose that is why Teckwah's Print business is consistently profitable, and the related customer relationships have supported the steady growth of Teckwah's Non-Print business (i.e. specialist logistics services). 

So I suppose Teckwah's business does have some advantages, and the group's positive financial performance over the years affirms this as well.

I agree with dydx analysis. A cursory look at this business will get you nowhere, and trust me, I also looked at it in a cursory manner before, and gosh was I wrong. Look deeper. It is not your normal printing business. And since then, I loaded up on this stock more heavily. 

I own this stock for its long term stability and ability to continue to make money through various innovations. I am looking for more growth from this company. I believe it is a long term story. And I am paid to wait (thankfully, my entry cost very low. My dividend yield is very high)

Over the last few years, I cannot recall people buying (or trying to buy) Teck Wah so hard. Whats going on??? Usually people put a low bid and hope some desperate souls sell down. Recently the buying pattern is unusual.

Teckwah's FY16 AR just out and makes interesting reading for the coming weekend...
http://infopub.sgx.com/FileOpen/Teckwah%...eID=445496

Amazing close at 0.51 today. Also some big married deals done today. Is something up?