Sin Ghee Huat Corp.

i read the annual report the company clarifies with effect from this financial year, their dividend policy will be to distribute approximately 50% of net profit after tax. this would mean based on last eps of 2.4cent, we can roughly expect the next round of dividend to be 1 cent. a drastic drop.

There are 2 components of dividends. That's the normal dividend and the special dividend. I interpret the distribution of 50% of net profit refer only to the normal dividend. The question is what is their conditions of distributing the special dividend? I suppose one of the conditions is the amount of net cash the company is holding current it is about 16 cents per share.

Latest quarterly report:

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Just checked my bank account and noted a nice credit from SGH's $0.02/share Final+Special dividends for FY11. Feeling great!

SGH closed at $0.23 today (18Nov11, Friday). Despite the prevailing weak stock market sentiment, post dividend payment, SGH's share price has managed to keep steady so far.

Hi all, am studying this company.

Has any buddy noticed that its net cash flow from ops has been falling in the past 3 FY?
2010 - $9074k
2011 - $2272k
2012 - $1386k

It's trade receivables has also increased in past 3 years, in a bigger percentage than its revenue increase:
2010 - $13074k (up 16% while sales down 11%)
2011 - $15617k (up 19% while sales up 9%)
2012 - $20082k (up 28% while sales up 16%)

On surface does not seem like a good trend. Is this a cause of concern here?

Thanks everyone.

(08-10-2012, 09:10 AM)csccc Wrote: Hi all, am studying this company.

Has any buddy noticed that its net cash flow from ops has been falling in the past 3 FY?
2010 - $9074k
2011 - $2272k
2012 - $1386k

It's trade receivables has also increased in past 3 years, in a bigger percentage than its revenue increase:
2010 - $13074k (up 16% while sales down 11%)
2011 - $15617k (up 19% while sales up 9%)
2012 - $20082k (up 28% while sales up 16%)

On surface does not seem like a good trend. Is this a cause of concern here?

Thanks everyone.

If you look further back you will notice that the receivable turnover was worse in the earlier years when they had higher revenues. Their gross and net margins have also deteriorated in the past 4-5 years. Don't you think these are "bigger concerns"?

I would rather trend the revenue and profit (margins) than the cashflow since it can be distorted by movement of big balance sheet items (e.g. inventory since the company is a stockist).

Profit Guidance for First Quarter ended 30 September 2016

Sin Ghee Huat Corporation Ltd (the "Company") and its subsidiaries (together the "Group") wishes to issue this profit guidance for the first quarter ended 30 September 2016 ("1Q2017").

Based on preliminary figures, the Group expects to record a loss for 1Q2017. Details of the Group's financial performance will be disclosed when the Company announces its unaudited financial results for 1Q2017 on or before 14 November 2016.

Shareholders are advised to exercise caution when dealing in the shares of the Company.

FY2020 Result
Rev $37m (vs 49m)
Gross Loss $4m (vs +2m)
Net Loss  $4m (vs +2m)
Div NIL (vs 0.6 cents)

The virus outbreak continues to weigh on the world economy. Although oil and nickel prices have recovered from their early fall and are in a stable range, demand for our products continue at a reduced level due to reduced business activity from our customers. 

Stay home and stay safe, everyone

Answers to SGX Queries:
The reasons for the impairment on trade and other receivables are mainly for 
1) long-outstanding debts whereby the allowance for impairment would be made in accordance to our policy and, 
2) customers which are in various stages of restructuring i.e. liquidation, judicial management etc.

3) Company’s New Zealand joint-venture partner had been terminated. Consequently, the New Zealand joint-venture entity, First Break SG Metals 2015 Limited (“FBSGM”), in which the Company has a 50% equity interest, would be closed. The net trade receivables from FBSGM of approximately S$0.8 million1 (refer to Table 1) will be written-off upon the statutory closure of FBSGM.

4) In relation to FBSGM, the stock balance was shipped back to Singapore to offset against the outstanding trade receivables. Furthermore, any remaining funds upon the completion of the statutory closure will be used to offset against the trade receivables. However, the remaining funds are not expected to be material.
https://links.sgx.com/FileOpen/RespondSG...eID=631224

Stay home and stay safe, everyone.