Versalink

https://www.theedgesingapore.com/news/pr...ty-130-mil

The NAV of the company will rise to around $0.16.  The sales proceeds which will be received in cash alone will be around $0.093.  The company was already in a net cash position before this disposal.

https://links.sgx.com/FileOpen/Notice%20...eID=737527

https://links.sgx.com/FileOpen/Announcem...eID=737530

The company will pay out $0.06 in cash after the sale of the property. The last done price of the stock is $0.111. Estimated NAV after sale $0.1626. Estimated net cash $0.1071

After the $0.06 is paid out, NAV $0.1026, Net Cash $0.0471, if share price adjusts by $0.06 to $0.051, the valuations will still be 0.5x p/b and just above net cash.

Took a quick look at this furniture manufacturer:

-FY17: NAV=47.6cents rm
-FY22: NAV=36cents rm

The company has been bleeding slowly at ~negative CAGR ~5% in last 5 years (another 1-2% points if add in the myr depreciation) At least, a capital reduction is proposed and some "trapped value" is returned to shareholders (the controlling shareholders could have easily used it as feedstock to continue the slow bleeding).

Cigar butt anyone but not sure when the next puff is going to be.

(04-11-2022, 12:24 PM)weijian Wrote: Took a quick look at this furniture manufacturer:

-FY17: NAV=47.6cents rm
-FY22: NAV=36cents rm

The company has been bleeding slowly at ~negative CAGR ~5% in last 5 years (another 1-2% points if add in the myr depreciation) At least, a capital reduction is proposed and some "trapped value" is returned to shareholders (the controlling shareholders could have easily used it as feedstock to continue the slow bleeding).

Cigar butt anyone but not sure when the next puff is going to be.

https://links.sgx.com/FileOpen/VHL-SGXAn...eID=734315

The company has turned around with an operational half year net profit.


https://links.sgx.com/FileOpen/Circular%...eID=737529

"3.2 Rationale for the Proposed Capital Reduction and Proposed Cash Distribution 

The Directors are of the view that the Proposed Capital Reduction and Proposed Cash Distribution is in the best interests of the Company as it will allow the Company to distribute part of the Net Proceeds from the Proposed Sale, which the Group does not require for its working capital, to Shareholders. In addition, the Proposed Capital Reduction will result in the Company having a more efficient capital structure, thereby also improving Shareholders’ return on equity."

The company has also indicated its willingness to do the right thing, something that is so rare among other small/mid/large caps listed on sgx.

Despite its small size, the company has chosen not to hoard cash and seeks to improve ROE by paying out the excess cash and using the same amount of resources to grow organically.  That's commendable.

(04-11-2022, 04:46 PM)bargainhunter Wrote:

(04-11-2022, 12:24 PM)weijian Wrote: Took a quick look at this furniture manufacturer:

-FY17: NAV=47.6cents rm
-FY22: NAV=36cents rm

The company has been bleeding slowly at ~negative CAGR ~5% in last 5 years (another 1-2% points if add in the myr depreciation) At least, a capital reduction is proposed and some "trapped value" is returned to shareholders (the controlling shareholders could have easily used it as feedstock to continue the slow bleeding).

Cigar butt anyone but not sure when the next puff is going to be.

https://links.sgx.com/FileOpen/VHL-SGXAn...eID=734315

The company has turned around with an operational half year net profit.


https://links.sgx.com/FileOpen/Circular%...eID=737529

"3.2 Rationale for the Proposed Capital Reduction and Proposed Cash Distribution 

The Directors are of the view that the Proposed Capital Reduction and Proposed Cash Distribution is in the best interests of the Company as it will allow the Company to distribute part of the Net Proceeds from the Proposed Sale, which the Group does not require for its working capital, to Shareholders. In addition, the Proposed Capital Reduction will result in the Company having a more efficient capital structure, thereby also improving Shareholders’ return on equity."

The company has also indicated its willingness to do the right thing, something that is so rare among other small/mid/large caps listed on sgx.

Despite its small size, the company has chosen not to hoard cash and seeks to improve ROE by paying out the excess cash and using the same amount of resources to grow organically.  That's commendable.

After the disposal, NAV/share would increase to MYR0.49. With a $0.06/share cash distribution coming, and since the business has recovered and started to show profits again, fair intrinsic value should be higher than the NAV/share.

(05-11-2022, 01:47 PM)dydx Wrote:

(04-11-2022, 04:46 PM)bargainhunter Wrote:

(04-11-2022, 12:24 PM)weijian Wrote: Took a quick look at this furniture manufacturer:

-FY17: NAV=47.6cents rm
-FY22: NAV=36cents rm

The company has been bleeding slowly at ~negative CAGR ~5% in last 5 years (another 1-2% points if add in the myr depreciation) At least, a capital reduction is proposed and some "trapped value" is returned to shareholders (the controlling shareholders could have easily used it as feedstock to continue the slow bleeding).

Cigar butt anyone but not sure when the next puff is going to be.

https://links.sgx.com/FileOpen/VHL-SGXAn...eID=734315

The company has turned around with an operational half year net profit.


https://links.sgx.com/FileOpen/Circular%...eID=737529

"3.2 Rationale for the Proposed Capital Reduction and Proposed Cash Distribution 

The Directors are of the view that the Proposed Capital Reduction and Proposed Cash Distribution is in the best interests of the Company as it will allow the Company to distribute part of the Net Proceeds from the Proposed Sale, which the Group does not require for its working capital, to Shareholders. In addition, the Proposed Capital Reduction will result in the Company having a more efficient capital structure, thereby also improving Shareholders’ return on equity."

The company has also indicated its willingness to do the right thing, something that is so rare among other small/mid/large caps listed on sgx.

Despite its small size, the company has chosen not to hoard cash and seeks to improve ROE by paying out the excess cash and using the same amount of resources to grow organically.  That's commendable.

After the disposal, NAV/share would increase to MYR0.49. With a $0.06/share cash distribution coming, and since the business has recovered and started to show profits again, fair intrinsic value should be higher than the NAV/share.

Net cash per share after netting off all liabilities and after accounting for the currently weaker exchange rate would be between 9.8c and 10.7c depending on how they account for the sale and leaseback transaction.  Investors will receive 6c from this net cash.  

The last transacted share price of 10.6c is within this range.  Furniture Inventories of $0.023 and Remaining Plant, Property and Equipment of $0.024 make up the bulk of the rest of the NAV which is currently valued at close to nothing.

https://links.sgx.com/FileOpen/Announcem...eID=740582

The sale of the property had been completed on 2 December 2022


https://links.sgx.com/FileOpen/Minutes%2...eID=739861

The company has guided that the $0.06 Cash Distribution is expected to be paid by the end of February 2023.

https://links.sgx.com/FileOpen/VHL%20-%2...eID=744245

Looks like the $0.06 Cash Distribution payout has been brought forward slightly. Ex-date is 25/01/2023 so the last day to be entitled to the dividend is 20/01/2023, this Friday.

https://links.sgx.com/FileOpen/VHL%20SGX...eID=744104

Versalink has announced a loss for Q3 ended 30 November 2022 but has announced an interim dividend of S$0.018.