Fu Yu Corporation

Again on a bad day with broader market went down 1.29% Fu Yu surprisingly went up 9.1% with super heavy volume of 29.1 Millions shares. At 8.4 cents/share it is still too undervalued comparing to its net cash position and its book value. With Malaysian unit gradually disposing assets/enhancing production capability/not taking on low margin orders and eventually being monetized and return excess cash back to Fu Yu. We could be in for a pleasant surprise.

Last quarter was really a weak quarter. The concern for current quarter is high oil price.

- vested

(05-09-2013, 02:02 AM)Townboy Wrote: Last quarter was really a weak quarter. The concern for current quarter is high oil price.

- vested

Yes, Q2 result was not as good as Q1/13 but better than Q2/12. This quarter high oil price could be in the pictures but there are fundamental changes inside Fu Yu that would offset this negative factor. it already showed good result.

1) Fundamental changes with the Malaysia Sub "As the disposal was completed only in Jun 2013 and sub-tenancy agreement is yet to be effective, there was no material impact to the operational performance of the Malaysia segment in Q2 FY2013"
2) US/Sing exchange rate is going to be better for Fu Yu
3) Healthy Balance sheet, 61.1 Mils Cash even after paying off 1 mils deb and spent 3.1 mils on CAPEX.
"The Group’s cash and cash equivalents (excluding cash deposits pledged) stood at S$61.1 million as at 30 Jun 2013, an increase of S$14.3 million from cash and cash equivalents as at 31 December 2012.The net cash inflow was partly offset by the repayment of financial liabilities of S$1.0 million and purchase of property, plant and equipment of S$3.1 million"

Again Fu Yu climbed up 4.9% today on high volume (5 mils) it is looking quite good at NAV 22.11 cents

SLC81, do you have a target price? Today Fu Yu hit a high of 9.7cts. I think Fu Yu really need to deliver good results (not just disposable of asset) in the current and next quater before we can call the business has been turned around. At this moment, it is more of a good candidate for take over.

- vested

Substantial shareholder, Lui Choon Hay, has disposed off 3.47mil shares at average 8.713cts/share. He is left with ~57.8mil shares (7.9%).

- vested

Townboy, I don't like to have a specific target for Fu Yu but $ 0.14 is very possible. Don't bother too much about the Ex-chair selling shares. He sold some months ago at 6 cents (probably at around the same price you bought) and it is now 50% higher.

2013 Q3 ended September 30 Financial Report.

http://infopub.sgx.com/FileOpen/Fu_Yu_fi...eID=264523

Bad quarter and company made a net lost of S$1.6mil. Gross profit margin dropped to 5.5% mainly due to operation inefficiency at new Chongqing subsidiary. Cash holding is still strong at S$62.9mil and short term financial liabilities of S$3.8mil. The management needs to learn from Sunningdale Tech.

- Vested

2013 full year financial report.

http://infopub.sgx.com/FileOpen/Fu_Yu_FY...eID=276036

Another so so quarter. Cash holding at $77mil and current debt of $3.2mil. No dividend. Based on yesterday's closing market price, the market cap is lower than cash holding. Isn't it better to privatize? What is management thinking?

- vested but ready to let go

Ng Hock Ching offers to buy 10.3 % of Fu Yu for 9 cents.

(03-03-2014, 07:57 PM)SLC81 Wrote: Ng Hock Ching offers to buy 10.3 % of Fu Yu for 9 cents.

Wonder why he quit the board and then now make partial offer...