TeckWah

(25-11-2013, 02:16 PM)dydx Wrote: JTC's latest land tender on a choice 30-year leasehold land plot....
http://www.jtc.gov.sg/Sales-Rental/Gover...221113.pdf
The top bid of $120,078,500 works out to be a unit land cost of $2,694.50 per sq.m. of gross floor area for the proposed mixed industrial/commercial development, based on the land plot area of 12,732.8 sq.m. and the 3.5x max. permissible GPR (Gross Plot Ratio).

Teck Wah has a land plot close by which has a much longer lease term (30 + 29 years).....
http://infopub.sgx.com/FileOpen/1509710_...ileID=3455
and Teck Wah paid a land premium of only $7,735,640 back in 2011. This works out to be a unit land cost of only $341.64 per sq.m of gross floor area for the proposed mixed industrial/office development, based on the land plot area of 9,057 sq.m. and the max. 2.5x permissible GPR.

A news article on Mapletree - which paid the top bid of close to $120.1m in the latest land tender in Tai Seng by JTC - planning to spend as much as $250.0m on their proposed mixed property development project…..
http://www.straitstimes.com/archive/satu...g-20131221

On the other hand, Teckwah is expected to spend approx. $60.0m (including plant and machinery) for the initial lease term of 30 years, and another at least $15.0m (including by sub-tenants) - within 5 years after the issue of TOP - for an additional lease term of another 29 years on top of the initial lease term of 30 years.

Teck Wah's soon-to-be-completed light industrial building/Print Media Hub Project at Paya Lebar iPark - to be named "Pixel Red" - is actually next to UE Print Media Hub located at 61 Tai Seng Avenue, and Luxasia Building located at 12 Tai Seng Street…..
http://www.streetdirectory.com/sg/ue-pri...43458.html

More info and pictures on Pixel Red, which should be an eye-catching building along Upper Paya lebar Road and in the Tai Seng area when completed in Mar14…..
http://www.teckwah.com.sg/pdf/GrdBreakin...ug2012.pdf
http://axisarch.com.sg/architect/redbox-...ng-avenue/
http://www.commercialguru.com.sg/listing...i-seng-ave

Today so far (as at 4:50PM) Teckwah has edged up by another $0.005, with last done at $0.375, supported by decent volume. There are signs that at the current price level, demand for this counter exceeds supply.

I guess if there are more free-float shares available, the counter would have gone much higher already!

An old (dated 3Sep2012) but very informative and interesting BT write-up on Teckwah by Mano Sabnani based on his interview with Teckwah's CEO Thomas Chua…..
http://www.sim.edu.sg/News/NewsClippings...%20box.pdf

An old accolade on CEO Thomas Chua in conjunction with his receiving the 5th IMAA (international Management Action Award) in 2005 conferred by Spring Singapore and Chartered Management Institute (CMI) of U.K…..
http://www.imaa.org.sg/en/imaa-winners/t...a-kee-seng

Mr Thomas Chua is also the current President of the Singapore Chinese Chamber of Commerce & Industry (SCCCI)'s 57th Council…..
http://english.sccci.org.sg/index.cfm?GPID=1987
and a current board member of Spring Singapore…..
http://www.spring.gov.sg/aboutus/bod/pag...tEIeP1plFI

(11-01-2014, 05:28 PM)dydx Wrote: An old (dated 3Sep2012) but very informative and interesting BT write-up on Teckwah by Mano Sabnani based on his interview with Teckwah's CEO Thomas Chua…..
http://www.sim.edu.sg/News/NewsClippings...%20box.pdf

An old accolade on CEO Thomas Chua in conjunction with his receiving the 5th IMAA (international Management Action Award) in 2005 conferred by Spring Singapore and Chartered Management Institute (CMI) of U.K…..
http://www.imaa.org.sg/en/imaa-winners/t...a-kee-seng

Mr Thomas Chua is also the current President of the Singapore Chinese Chamber of Commerce & Industry (SCCCI)'s 57th Council…..
http://english.sccci.org.sg/index.cfm?GPID=1987
and a current board member of Spring Singapore…..
http://www.spring.gov.sg/aboutus/bod/pag...tEIeP1plFI

Mr Thomas Chua IS Teckwah. And that is the danger for Teckwah. Too much reliance on the personality and vision of a single key man. There are no successors identified and it is still primarily a family based business.

Conservative and steady but growth prospects limited due to changes in global marketplace that Teckwah may not be able to capitalize due to old school leadership.

(12-01-2014, 03:41 PM)Cloudman Wrote: Mr Thomas Chua IS Teckwah. And that is the danger for Teckwah. Too much reliance on the personality and vision of a single key man. There are no successors identified and it is still primarily a family based business.

Conservative and steady but growth prospects limited due to changes in global marketplace that Teckwah may not be able to capitalize due to old school leadership.

Mr Thomas Chua (aged 60) is Chairman/MD of Teckwah, but the founding Chua Family he represents now owns just 30+% of Teckwah, including a strategic 29.89% held under Chua Seng Tek Holdings P/L. Another founder - the Lee Family - owns another 11.23%; Ho Bee's boss - Mr Chua Thian Poh - owns another 15.07% acquired over the years from the open-market.

Looking back Teckwah's business history (first founded in 1968, and listed since 1994) and evolution in the last 20 years, it is fair to say that what we have in Teckwah now can be very much accrued to the hard work of Mr Thomas Chua (who first joined in 1979 as a management trainee, and was first appointed Chairman/MD in 1989). Of course, Teckwah's businesses have expanded and evolved over the years, and the group is now firmly established as a leading service provider of customised supply chain management services - offering a variety of solutions which include new packaging solution neupack™, business process outsourcing, e-commerce, web-based procurement and fulfillment click solution™, service parts logistics and reverse logistics solutions. The group now owns/operates manufacturing plants in Singapore, Malaysia, Indonesia, China, Taiwan, Thailand, Philippines and Australia, and a global network. More info…..
http://www.teckwah.com.sg/about.html [corporate website]
http://www.teckwah.com.sg/pdf/annual-rep...AR2012.pdf [Latest FY12 AR]
http://www.teckwah.com.sg/pdf/CaiXunQ32013.pdf [Latest 3Q-2013 "Cai Xun" newsletter]

I believe Teckwah's track record in achieving steady business growth and profitability, as well as in rewarding shareholders with yearly dividends since 1995 - including twice-a-year dividends since FY2009 - speaks loud and clear for Teckwah's and Mr Thomas Chua's achievements.

Apart from the plan to further expand/upgrade the group businesses including the investments in new plants in Iskandar, Wuxi and the upcoming "Pixel Red" new print media hub in Tai Seng, what makes Teckwah rather interesting are (1) the additional property value to be realised in Pixel Red when it is completed in Mar/Apr14 - vs. the much higher current market value of similar industrial properties in the Tai Seng area; (2) the expected new recurrent rental income from renting out a portion of Pixel Red; and (3) the huge saving in recurrent rental expense - estimated at some $5.0m/year - from mid-2014 onwards when Teckwah vacates from its present leased HQ building at 25 Pandan Crescent.

(13-01-2014, 11:17 AM)dydx Wrote: I believe Teckwah's track record in achieving steady business growth and profitability, as well as in rewarding shareholders with yearly dividends since 1995 - including twice-a-year dividends since FY2009 - speaks loud and clear for Teckwah's and Mr Thomas Chua's achievements.

Apart from the plan to further expand/upgrade the group businesses including the investments in new plants in Iskandar, Wuxi and the upcoming "Pixel Red" new print media hub in Tai Seng, what makes Teckwah rather interesting are (1) the additional property value to be realised in Pixel Red when it is completed in Mar/Apr14 - vs. the much higher current market value of similar industrial properties in the Tai Seng area; (2) the expected new recurrent rental income from renting out a portion of Pixel Red; and (3) the huge saving in recurrent rental expense - estimated at some $5.0m/year - from mid-2014 onwards when Teckwah vacates from its present leased HQ building at 25 Pandan Crescent.

No doubt Teckwah have done well so far and the potential gains in Pixel Red is due to Mr Thomas Chua, be it his vision or connections. There could be cost savings from recent initiatives but these are all passive savings rather than actively growing the business base.

IMHO, if a company is not able to grow the revenue bases, then it will always be on the back foot in reducing costs to remain profitable and there is only so much you can do after a while.

The gains in fixed assets base will hold Teckwah in good stead but its the continuing growth prospects of the company that I have my doubts.

(13-01-2014, 11:23 PM)Cloudman Wrote: No doubt Teckwah have done well so far and the potential gains in Pixel Red is due to Mr Thomas Chua, be it his vision or connections. There could be cost savings from recent initiatives but these are all passive savings rather than actively growing the business base.

IMHO, if a company is not able to grow the revenue bases, then it will always be on the back foot in reducing costs to remain profitable and there is only so much you can do after a while.

The gains in fixed assets base will hold Teckwah in good stead but its the continuing growth prospects of the company that I have my doubts.

Cloudman, i strongly believe that you either don't have a good understanding of teckwah's business or wrong judgement, i can assure you, evey segment of teckwah's business have very strong growth potential. Please go and read more indepth into teckwah's different business segments.

(13-01-2014, 11:40 PM)HoHo Wrote: Cloudman, i strongly believe that you either don't have a good understanding of teckwah's business or wrong judgement, i can assure you, evey segment of teckwah's business have very strong growth potential. Please go and read more indepth into teckwah's different business segments.

@ Hoho...Just out of curiosity...how well do you understand Teckwah's business? Sometimes reading from published news may not always tell the whole story. To each his own.....

(14-01-2014, 12:00 AM)Cloudman Wrote:

(13-01-2014, 11:40 PM)HoHo Wrote: Cloudman, i strongly believe that you either don't have a good understanding of teckwah's business or wrong judgement, i can assure you, evey segment of teckwah's business have very strong growth potential. Please go and read more indepth into teckwah's different business segments.

@ Hoho...Just out of curiosity...how well do you understand Teckwah's business? Sometimes reading from published news may not always tell the whole story. To each his own.....

Mark my word, and i only say it once, this man Thomas Chua will be the next Steve Jobs. They are truly visionary men.