Triyards Holdings

(22-10-2012, 02:36 PM)dzwm87 Wrote: IMO, the only good benefit for SCB trading platform is the "no minimum commission". It saves on commission charges for small trading bids - few thousand dollars kind. The benefits wear off the moment the nominal bid sum gets larger and larger.

The downside of the platform is that it is restricted under SCB custodian. So you can't sell those shares using other platform/CDP. The worse case scenario comes during a crazy sell-off (market crash) and imagine the loss when the SCB website get flooded with heavy traffic. You also get other issues which solaris had just encountered. Convenience is also no on your bargaining side as you have to write to SCB to proxy you for any AGM if you wish to attend.

Now, the question is weighing the benefits against the losses. IMO, as an investor (and not trader), our market purchasing frequency is not very frequent. With a low capital base, it is even lesser. Hence, the no minimum comm charge may not be as enticing as it may seem to be.

My take is this platform will only be good for those who wish to trade and has very little capital base. That said, with a small capital base, one shouldn't even be trading at all.

The minimum comm charge in POEMS (Non Advisory and Online) are

up to SGD50,000 0.28%
>SGD50,000-SGD100,000 0.22%
>SGD100,000 0.18%
Minimum S$25

If the trade contract value > 9K, than minimum sum is gone

IMO, the limitations are too much a cost to do away the minimum sum

I've done a new post on Triyards, please do let me know what you think. Agree/disagree

http://saharainvesting.wordpress.com/201...-holdings/

I have remove from watch list as there are better counters

- lumpy earnings , hard to predict . Like previous result announcement , the price move higher before announcement but result turn out below market expectation . Even previously quarter good result earnings , it was also sell on news event. always Turn out dumping scenario.
- it was spin off so that it can do fund raising on its own , don't strain on Ezra cashflow. Right issue is definitely not an option . Do we expect placement ?
- compare to other shipping building co, there are better options

(09-02-2013, 05:27 PM)sahara Wrote: I've done a new post on Triyards, please do let me know what you think. Agree/disagree

http://saharainvesting.wordpress.com/201...-holdings/

Just curious - if one is bullish on the prospects of liftboats in Asia - wouldn't it be 'better' to invest in Ezion with its visible recurring cash-flow from charter income and extremely high ROE enabling EPS accretive equity financed acquisitions in the future ?

(Not Vested in either)

(10-02-2013, 11:47 AM)Nick Wrote: Just curious - if one is bullish on the prospects of liftboats in Asia - wouldn't it be 'better' to invest in Ezion with its visible recurring cash-flow from charter income and extremely high ROE enabling EPS accretive equity financed acquisitions in the future ?

(Not Vested in either)

I think you're missing the point. Ezion do not make SEUs. The bullish thesis is based on the advantages of SEUs over jackup rigs, and their relative scarcity outside the GoM where they are very widely used.

Anyway, Triyards ROE was 53.2% last year and they have a $700m order book. Admittedly there is no certainty that they will get more business after that, but if the analysis is correct then they will.

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(10-02-2013, 11:06 AM)2V. Wrote: I have remove from watch list as there are better counters

- lumpy earnings , hard to predict . Like previous result announcement , the price move higher before announcement but result turn out below market expectation . Even previously quarter good result earnings , it was also sell on news event. always Turn out dumping scenario.
- it was spin off so that it can do fund raising on its own , don't strain on Ezra cashflow. Right issue is definitely not an option . Do we expect placement ?
- compare to other shipping building co, there are better options

(09-02-2013, 05:27 PM)sahara Wrote: I've done a new post on Triyards, please do let me know what you think. Agree/disagree

http://saharainvesting.wordpress.com/201...-holdings/

Point one - yes very lumpy. If you aren't comfortable with a multi-year investment then this isn't for you.

Point two - Ezra guarantees its debt. I'm sure it would be able to raise more if it had to. Anyway, they have an enormous amount of receivables which will turn to cash over the coming years.

Point three- I don't think so. This opportunity is focused on SEUs. No one else does that in Asia.

From UOBKH Research Report (8th Oct 13)

Quote:Triyards (BUY/Target: S$1.11) - Cheap leading liftboat builder. The group had commissioned a floating dock, which will ramp up its ship repair capacity and contribute incremental earnings of US$2m-3m a year. Management also indicated seeing strong enquiries for its proprietary third-generation self elevating units (SEU), which will drive orders growth going forward. Maintain BUY and target price of S$1.11, pegged at 7.9x FY14F PE, a 10% discount to peers’ average of 8.8x FY14F PE.

Not vested

Triyards: 1QFY14 net profit climbed 13% y/y to US$7.4m while topline soared 69% to US$90.1m, attributable to the higher contributions from the subsea construction vessel, Lewek Constellation. Revenue from self-elevating unites (“SEUs”) was also higher due to the advanced stage of completion for 2 of the BH450 series and one of the BH335 series. Bottomline grew at a slower clip than topline primarily as gross margins slid from 20.5% to 14.1%. Management is optimistic towards demand for medium to large sized offshore support vessels and SEUs for the 12 months going forward, and enjoys healthy enquiries on its TDU400 jackup rig and SEU construction Separately, Triyards has expanded their scope and announced new orders in vessel construction and outfitting for 2 cruise liners, each with Aqua Expedition and International Shipping Partners. Total contract value for work for Triyards and its partners is ~US$7.5m. Triyards is currently trading at 5.4x annualized 1QFY14 P/E

This coy declared a 2ct div in its Q4 report on 24th Oct 2013. AGM approved this resolution two months later on 16th Dec 2013. Another month since then and FY14 Q1 is already out on 9th Jan but still no announcement on when that 2cts div will be paid.

Is this normal?

This company seems attractive on valuation. Based on latest Q2 results:

PE = 5
PB = 1
GPM = 18%
OPM = 14%
NPM = 10%
Net Gearing = 61%
ROE = 19%
ROA = 8%

EPS for last six quarters were pretty steady at about 12cts [correction: is 3.3cts on average per quarter] on average but price has dropped from $0.76 to $ 0.64. They declared their maiden 2cts dividend for FY13 (its Fin Year end is 31 Aug 2013).

Seems to be lagging behind peers quite a lot.

Any buddies here has any thoughts to share on this company?

(not vested .....yet)

(10-04-2014, 08:23 PM)GPD Wrote: This company seems attractive on valuation. Based on latest Q2 results:

PE = 5
PB = 1
GPM = 18%
OPM = 14%
NPM = 10%
Net Gearing = 61%
ROE = 19%
ROA = 8%

EPS for last six quarters were pretty steady at about 12cts [correction: is 3.3cts on average per quarter] on average but price has dropped from $0.76 to $ 0.64. They declared their maiden 2cts dividend for FY13 (its Fin Year end is 31 Aug 2013).

Seems to be lagging behind peers quite a lot.

Any buddies here has any thoughts to share on this company?

(not vested .....yet)

FCF negative in the last 5 years except 2010. Record profit in 2012 but still generate negative OCF?
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