New Toyo

No wonder many people shun away from this kind of counter, despite the good cashflow and stability of dividend.
I guess a lot of people believe in ethical investing, and Karma.

It is also very difficult to get analyst coverage for this type of counter?

Is New Toyo historical P/E of 9.4 (current share price of 31.5 cent over last FY EPS of 3.37 cents) over-stretched at the moment?
Does Tobacco packaging justify this kind of P/E?


Forumers, any view pls?

Amvig (listed in HK) with much better gross profit margin than Tien Wah is currently trading at a P/E ratio of slightly less than 7 times.

HKSE which tends to have higher valuation for shares but yet it is only trading at P/E of less than 7.

It looks like New Toyo/Tien Wah is over-valued by Mr Market.

********

(02-06-2013, 04:05 PM)potatolover Wrote: No wonder many people shun away from this kind of counter, despite the good cashflow and stability of dividend.
I guess a lot of people believe in ethical investing, and Karma.

It is also very difficult to get analyst coverage for this type of counter?

Is New Toyo historical P/E of 9.4 (current share price of 31.5 cent over last FY EPS of 3.37 cents) over-stretched at the moment?
Does Tobacco packaging justify this kind of P/E?


Forumers, any view pls?

If not for the relatively more resilient/profitable tobacco printing/packaging segment, Tien Wah and New Toyo's other printing segments for FMCG (fast moving consumers goods) are very competitive with low profit margin, and these segments should not attract P/E valuation more than 5!

Going to drop back below 30 cents as expected...."dull business" with no interest from investment community...

Agreed lah.

Undervalued NAV will continue to be undervalued since it is a counter with no interest from investment community. The depth of the discount is quite meaningless. U can say that it is worth 50 cents or even $1.
it is pointless...

(04-06-2013, 04:43 PM)Stockerman Wrote: Going to drop back below 30 cents as expected...."dull business" with no interest from investment community...

Haha somehow its very interesting to see the same forumers making the same old comments about new toyo repetitively almost every other day! Any other members with other keen insights that may be of real value?

(04-06-2013, 07:59 PM)investright Wrote: Haha somehow its very interesting to see the same forumers making the same old comments about new toyo repetitively almost every other day! Any other members with other keen insights that may be of real value?

Ha ha ha. This same person when confronted by me admitted that he has about 700 lots. I think he is still holding the shares and at the same time running down NT with the same negative comments day in day out.

He some how does not walk his talk ... He only talks and talks ....

Has anyone heard the joke of the century that one single person can talk up or talk down a counter?
if anyone can come forward with good anedoctal evidence to refute what I said, I am most happy

New Toyo with huge cash piles will stand to gain...
My previous estimate of cash balance at end of FY2013 is at least 20 cents if NO special dividend is paid out during the FY.

Current share price is only 31.5 cents.

*********

CIMB Research said banks and companies with huge cash piles in Singapore will benefit from a potential rise in interest rates, while losers would be firms with high gearing and real estate investment trusts. - PHOTO: SPH

[SINGAPORE] CIMB Research said banks and companies with huge cash piles in Singapore will benefit from a potential rise in interest rates, while losers would be firms with high gearing and real estate investment trusts.

It maintained its end-2013 target of 3,460 points and "underweight" rating for the Straits Times Index, citing a lack of earnings per share growth. The index was down 1.4 per cent around 3,245 on Wednesday.

"From a balmy scenario of low interest rates and mild growth, the investment climate has suddenly turned into a stormy one with the risks of rising interest rates and bubbly bond valuations," CIMB said.

Singapore banks will benefit from rising interest rates as large companies will find it more expensive to raise money from the bond market, CIMB said, adding that net interest margins will improve in the medium term as the yield curve steepens.

The three Singapore banks are DBS Group Holdings, United Overseas Bank and Oversea-Chinese Banking Corp .

Companies with relatively high cash piles like Overseas Education, Fraser and Neave, Singapore Airlines, Bukit Sembawang Estates, Parkson Retail Asia, Sheng Siong Group and Biosensors International Group are also potential winners, CIMB said.

But Reits and highly-geared companies like Olam International, Noble Group, Wilmar International, Swiber Holdings, Ezion Holdings and Ezra Holdings may lose out, CIMB said. - Reuters

The undervaluation of New Toyo is understandable since the management did not exude confidence when being broached on the issue of renewal of contracts with BAT. When asked why don’t the company engage the IR more proactively, management seemed to be of the view that it was still premature to do so, probably because they felt that company might not live up to investors’ expectations.

Any other VBs who attended the AGM can share more pls. tks.