Cheung Woh Technologies

(08-06-2012, 11:33 AM)CityFarmer Wrote: The one catch my attention is the EPS (ttm) of 0.21 cts, with price of 22 cts, its PE is ~100 .

Haha sorry my bad with regards to the CWT part. However, I don't seem to get the part on EPS (ttm) to be 0.21 cts. Somehow the value I got was 5.56 cts calculated by 17415000/313085000. Could you explain how you got your EPS value? Or perhaps my understanding of EPS (ttm) is wrong?

Thanks.

(09-06-2012, 12:45 AM)heifien91 Wrote:

(08-06-2012, 11:33 AM)CityFarmer Wrote: The one catch my attention is the EPS (ttm) of 0.21 cts, with price of 22 cts, its PE is ~100 .

Haha sorry my bad with regards to the CWT part. However, I don't seem to get the part on EPS (ttm) to be 0.21 cts. Somehow the value I got was 5.56 cts calculated by 17415000/313085000. Could you explain how you got your EPS value? Or perhaps my understanding of EPS (ttm) is wrong?

Thanks.

http://info.sgx.com/webcoranncatth.nsf/V...A003957C0/$file/CheungWoh_Full_Year_FY2012.pdf?openelement

heifen91 - FY2011
FY2011 full year profit to shareholder = $17415000

Cityfarmer - FY2012
FY2012 full year profit to shareholder = $670000

The year of reference is different.

(09-06-2012, 11:31 AM)yeokiwi Wrote:

(09-06-2012, 12:45 AM)heifien91 Wrote:

(08-06-2012, 11:33 AM)CityFarmer Wrote: The one catch my attention is the EPS (ttm) of 0.21 cts, with price of 22 cts, its PE is ~100 .

Haha sorry my bad with regards to the CWT part. However, I don't seem to get the part on EPS (ttm) to be 0.21 cts. Somehow the value I got was 5.56 cts calculated by 17415000/313085000. Could you explain how you got your EPS value? Or perhaps my understanding of EPS (ttm) is wrong?

Thanks.

http://info.sgx.com/webcoranncatth.nsf/V...A003957C0/$file/CheungWoh_Full_Year_FY2012.pdf?openelement

heifen91 - FY2011
FY2011 full year profit to shareholder = $17415000

Cityfarmer - FY2012
FY2012 full year profit to shareholder = $670000

The year of reference is different.

Thanks yeokiwi for your promptly clarification on my behalf

Thanks! Was only able to find the annual report for '11 on their site so I presume we were discussing about that year =X

Before i start engaging an exchange of views/opinions with respect, as second nature of engineer , we like to make definition of terminologies to ease communication.

Over-value : A stock with a current price that is not justified by its earnings outlook or price/earnings (P/E) ratio.

It is by no mean to conclude a stock is mismanaged or struggled

With your links, i read the postings. I am understood now the reasons CheungWoh performance been depressed.

"The four-pronged "perfect storm" of i) Thailand's floods + ii) the Japanese Tsunami + iii) the high profile Bankruptcy of a key high volume customer (Solyndra) + iv) (accounting) FE losses arising during the drawn-out Chinese approval process of Cheung Woh's Tysan portfolio action."

(08-06-2012, 05:47 PM)RBM Wrote: ...

a) the recent (proposed) dividend announcement, i.e. including special dividend arising from last (financial) year's Chinese portfolio action, corresponds to a dividend yield exceeding 7% at the current share price. Hardly the pay-out of a struggling over valued company!

b) the confidence that Cheung Woh's BoD has demonstrated in the company's prospects by virtue of its sustained high volume share buy-back campaign - amongst other positive outcomes of this is the "effective floor" (at S$ 0.18 per share) that has been put under Cheung Woh's share price.

As my definition, i am not in doubt the management is trying to recover its biz and investor's trust. This is not within the context of our exchanges of views/opinions

Let's put up my view on CheungWoh in more detail

- The current PE is about 100. There is no doubt that Mr Market is paying CheungWoh with substantial hope on its recovering. In other words, the benefit of the recovering is already priced in.

- Hope remain as a hope, till the day it is fulfilled. Margin of safety is necessary to invest

With the above reasons, IMO CheungWoh is over-value to go in now with its current PE. Although i am sure CheungWoh will survive with its low long-term debt and current cash holding

I would like to ask if anyone has received Cheung Woh's 2012 Annual Report yet? With the AGM scheduled for two weeks this coming Monday, it has yet to be posted on the SGX website or Cheung Woh's own site. Does anyone know a site where a pdf copy can be found? Sorry to trouble forummers with this kind of question.

Vested.

P.S. I still wonder why the SGX doesn't mandate posting of AR's, say > 3 weeks before AGM's.

P.P.S. I must admit to CityFarmer that I do have the bias of someone who is vested in Cheung Woh. I apologise to you and to other forummers if my posting of yesterday came across as unbalanced. I still feel however that sometimes we can fall into the trap of reading too much into "snapshot P/E ratio's".

(09-06-2012, 04:26 PM)RBM Wrote: ...

P.P.S. I must admit to CityFarmer that I do have the bias of someone who is vested in Cheung Woh. I apologise to you and to other forummers if my posting of yesterday came across as unbalanced. I still feel however that sometimes we can fall into the trap of reading too much into "snapshot P/E ratio's".

Absolutely OK for me. This forum is mean to exchange views. Your view is heard although i may not agreed Different views make the world much more interesting and less boring, isn't it?

I share your opinion that we should look at more than one (1) year of performance. Be assured that i had more than one (1) year of data with me when i presented my view

Cheung Woh's FY12 (ended 28Feb12) AR makes interesting reading.....
http://info.sgx.com/listprosp.nsf/6c6be9...a00112500/$FILE/Cheung%20Woh%20AR%202012.pdf

After reviewing the AR, my sense is that Cheung Woh's business volume and revenues from the 2 remaining core business segments of HDD Components and Precision Metal Stamping Components are poised for quite a strong recovery in FY13.

Going forward, I suppose very likely the full value of Cheung Woh as a business and as a stock would be realised when the Law family decides to sell its controlling 70.49% stake to a trade buyer or a PE fund. I suppose any potential transaction would have to factor in Cheung Woh's continued ability to generate a good positive FCF from its business operation, as well as the CMV of the underlying assets that support the business operation. Bearing in mind Cheung Woh's latest (as at 28Feb12) NAV stood at $92.546m, any potential transaction could well be done at a reasonable premium over NAV say at $120.0m, which will translate into a price of approx. $0.39/share based on the latest 305.662m outstanding issued shares (excluding 7.423m treasury shares). Is this a little too far-fetched?

Q1 (ended 31May12) results just out.....
http://info.sgx.com/webcoranncatth.nsf/V...60031E464/$file/CheungWoh_1st_Quarter_FY2013.pdf?openelement
Is the sharp fall in GP, PBT and NP a cause for concern?

We should note that Cheung Woh's BOD has provided the following forward-looking statement: "Barring any unforeseen circumstances, the Board of Directors expects the Group to be profitable in the financial year ending 28 February 2013."

To me, it is also relevant to note that -
a) the operation continued to remain cash-flow positive; in fact, it generated $2.107m (or 11.7% of revenue) before changes in working capital items.
b) the group is now in a net cash position to the tune of $4.0m; it would be way in excess of $10.0m if we include a portion of the $13.8m trade receivables balance.
c) the Law Family plus associates now control slightly over 75% of Cheung Woh's outstanding issued shares of 305.662m. IMHO, based on the current stock market sentiment, Cheung Woh is now an easy privatisation target if the Law Family just makes a GO at a price closer to the latest NAV/share of $0.3066. Again, my wishful thinking?

announced today Nexsuss Holdings Pte Ltd purchased 5,591,040 shares from DBS Bank Ltd pursuant to the Sale and Purchase Agreement dated 19 July 2012.