Gul Technologies Singapore

This share looks undervalue imo. Past 5 years data are as follows:
In US$mil
2007: Rev=145.45; NP=10.48; Cash=20.67; FCF=15.03; PE=9.3; PB=-31; ROE=-ve; EPS=0.0113

2008: R=144.73; NP=6.31; Cash=19.15; FCF=26.06; PE=7.7; PB=1.26
ROE=16.3; EPS=0.0068

2009: R=145.92; NP=21.27; Cash=21.07; FCF=25.92; PE=3.2; PB=1.1
ROE=34.8; EPS=0.0228

2010: R=195.48; NP=24.54; Cash=31.38; FCF=20.29; PE=2.9; PB=0.8
ROE=28.6; EPS=0.0264

2011: R=236.97; NP=30.73; Cash=58.15; FCF=24.01; PE=2; PB=0.5
ROE=26.4; EPS=0.033

2012 half year results already the NP is US$24.1mil. Assuming 2012 FY NP is 30mil, base on today closing price of S$0.099, its PB=0.64; PE=2.4.

Positives:
- Very cheap imo. If i make a mistake in the PE and PB do let me know.
- Even during the global financial crisis it didnt go into negative. Company turned around in 2006 when they moved their operations out of Spore to China. But now China also getting expensive, hmm, i wonder how they going to cope.
- Surprisingly company did well in 2Q while Elec Eltek posted drop in revenue and NP.

Negatives:
- This company is in PCB making business and i think its a commodity business. There is no moat to keep competition away.
- Though floating share is 900mil, majority is held by Tuan Sing Company and its founders. Share is quite illiquid and minority shareholders might have no say.
- 0 dividend

Vested but represent only 1.8% in my portfolio. Not the type of company that can hold long term imo.

Might as well buy Tuan Sing

(27-08-2012, 11:46 PM)propertyinvestor Wrote: Might as well buy Tuan Sing

Tuan sing core business is in property and I do not know how to value property shares. You sh be the expert in property judging by your nick.

(28-08-2012, 12:25 AM)Bibi Wrote:

(27-08-2012, 11:46 PM)propertyinvestor Wrote: Might as well buy Tuan Sing

Tuan sing core business is in property and I do not know how to value property shares. You sh be the expert in property judging by your nick.

Yes, but Tuan Sing owns 43% of Gul tech and as a diversified conglomerate, trades at a 45% discount to their Book Value.

For a property stock with locked in earnings for the future and exposure to both SP Corp and Gul tech a 45% discount to its NAV is just too irresitable to ignore.

The two major shareholders are holding on to more than 86% of Gultech.
It is probably cheaper for the management to slowly accumulate another 3+% to hit 90% and delist the company at cheapo price.

Interestingly, William Liem, CEO of Tuan Sing and director of Gultech, was one of the winners of Best Investor Relations Award.
I am dumbfounded

http://www.businesstimes.com.sg/archive/...-investors

Some of the extracts of William Liem's interview.
William Liem: Good investor relations foster long-term trust between the company and the investment community. As a two-way dialogue, investor relations ensure that investors are fully informed of the company's governance, strategic directions, business performance, and future prospects; at the same time the company can listen, understand, and address the views and concerns of the investment community.

Feedback received via our website and questions raised during our meetings with shareholders, analysts, and the media also help us to better understand shareholders' concerns and address them in an open manner. Over the years, we believe we have gained credibility.

William: Investors' concerns revolved around the company's strategies, direction, and the quantum of dividend. In the past two years, we have elaborated on the group's strategies in the annual report and have consistently declared dividends. Where there are major corporate transactions or developments at Tuan Sing, we handled them in a transparent manner. Be it good or bad news, we explain the rationale and benefits to gather shareholders' support, or clarify the issues to reassure shareholders in uncertain times.

http://www.valuebuddies.com/thread-218.html
See the above thread for Tuan Sing's AGM.

It looks like Mr Market has wake up and discover this undervalue counter. Or perhaps its the tide lifting all boats. Or just some punters at work. I wont call it a gem cos its not advisable to hold a commodity company for long term. At today closing price of S$0.117, its PB is 0.76 and its PE is a ridiculously low 2.5. Technically, its RSI indicator is very overbought and i expect a correction downwards.

Since its last 2nd quarter result announcement which is less than 2 months ago, its share price has risen from 0.082 to 0.117, a hefty 46% increase! I cant say the same for its parent company Tuan Sing. Maybe its time will come.

Tuan Sing did indeed declared dividends but whether its consistent i am not so sure. So maybe what William Liem said might be true. I can understand why GulTech cant declare dividends as this company nearly went bankrupt. It was quite deep into negative equity in 2005 to 07 and has failed to repay its loans twice. It did declare dividends when it was listed in its early years 1997 i think. After the Asia Financial Crisis, it was hit hard and never registered any profits until year 2006.

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(28-08-2012, 02:31 PM)yeokiwi Wrote: http://www.valuebuddies.com/thread-218.html
See the above thread for Tuan Sing's AGM.

Wow i miss out this important thread by yeokiwi. Indeed not wise to hold such companies for even mid term .

When Tuan Sing launches Skypark@Sennett at 1300psf, its stock should fly to 37cents

Gosh, current price at 0.137 compared to yesterday close 0.117. Up another hefty 17%.

(13-09-2012, 09:51 AM)Bibi Wrote: Gosh, current price at 0.137 compared to yesterday close 0.117. Up another hefty 17%.

http://info.sgx.com/webcoranncatth.nsf/V...7007F7A31/$file/GBA-120913-HoldingAnnouncement-Final.pdf?openelement

Possible buyout offer. They probably will offer a low price. Anyway, they are only 4% away.

Those who got it on the cheap, it is a good gain. But, for those that have followed through the thicks and thins with the company throughout the years, they are screwed to the max.

(13-09-2012, 10:07 AM)yeokiwi Wrote:

(13-09-2012, 09:51 AM)Bibi Wrote: Gosh, current price at 0.137 compared to yesterday close 0.117. Up another hefty 17%.

http://info.sgx.com/webcoranncatth.nsf/V...7007F7A31/$file/GBA-120913-HoldingAnnouncement-Final.pdf?openelement

Possible buyout offer. They probably will offer a low price. Anyway, they are only 4% away.

Those who got it on the cheap, it is a good gain. But, for those that have followed through the thicks and thins with the company throughout the years, they are screwed to the max.

You are fast. Thanks for the info. Yes, those who follow thru the company since IPO are screwed very hard. Even those who bought since year 2006/7 are also screwed if the buyout offer is low. This reinforce the view that Tuan Sing management is not for minority shareholders. Company turned around and started making reasonable profits, they tried to delist it. Lets see how much is the buyout price and i do agree with yeokiwi it wont be high.

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Current price 0.147 now. At that price PB is 0.96 and PE is 3.18 assuming final year net profit is US$35 mil which is conservative imo.

May i ask, once the SGX announcement is made, can the offerer make purchase from the exchange direct?

As i am typing this, price is now 0.152. Gosh.