Fu Yu Corporation

Checked my old notes.

Litigation

Quote:The Board of Directors of Fu Yu Corporation Limited (the Company) wishes to announce that Mr Ng Hock Ching (Mr Ng), an Executive Director of the Company was charged in the Subordinate Courts on 24 January 2013 with 2 charges under section 201(b) of the Securities and Futures Act (Cap 289) and 1 charge each under sections 83(1), 137(1), 165(1)(b) and 166(1) of the Companies Act (Cap 50) for offences which allegedly occurred in March 2004 and January 2005 whilst he was a Director of SNF Corporation Limited.

Mr Ng is out on bail, and has informed the Company that he has engaged legal Counsel to defend him vigorously.

All the charges do not involve the Company and/or any of its subsidiaries.

The Company will keep the shareholders informed and updated on material developments in respect of the above matter.


BY ORDER OF THE BOARD


Low Siew Tian
Company Secretary

Singapore, 24 January 2013

Another one from Scintronix (Fu Yu version and Scintronix version). Also include Ho Kang Peng (director of Fu Yu) and Chow Weng Fook (employee of Fu Yu). Reported in the news too.

The offer document mentions "parties acting in concert". Who are they?

Very difficult lah. I think Warren Buffett said something about not getting a good deal with a bad guy.

His profile from AR2009:

Ng Hock Ching
Executive Director
Mr Ng, 49, was the corporate advisor for the Group prior to being appointed as the Executive Director
of the Company on 1 January 2010. His area of responsibilities includes charting the Group’s corporate
finance direction as well as corporate affairs of the Company. Mr Ng was a director in Scintronix
Corporation Ltd (formerly known as TTL Holdings Ltd) from September 2005 to April 2007 and a director
in Adventus Holdings Ltd (formerly known as SNF Corporation Ltd) from February 2003 to April 2007.
Mr Ng holds a Masters of Business Administration and a First Class Honours Degree in Electrical and
Electronic Engineering from the National University of Singapore. He is also presently an adjunct associate
professor at the National University of Singapore.
Mr Ng will stand for re-election as a Director at the forthcoming Annual General Meeting.
At 31 December 2009, Mr Ng holds 2.93% direct and 2.11% indirect interests in the Company.

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

Based on the latest financial statement of FuYu, cash is about 9.5cents/share and NAV is 22.26cents. This is really a cheap offer.

One of the reasons for this guy's offer is "his current shareholding was acquired at a much higher cost compared to the current share price of the company" and he wishes to "average down his overall cost of investment". He thinks we are Santa Claus!!!

- vested but ready to dump

(03-03-2014, 10:16 PM)smallcaps Wrote:

(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...

No longer insider constrained by announcement dates

(04-03-2014, 01:22 AM)Townboy Wrote:

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

Based on the latest financial statement of FuYu, cash is about 9.5cents/share and NAV is 22.26cents. This is really a cheap offer.

One of the reasons for this guy's offer is "his current shareholding was acquired at a much higher cost compared to the current share price of the company" and he wishes to "average down his overall cost of investment". He thinks we are Santa Claus!!!

- vested but ready to dump

:-) hilarious, you may wait for a short while to see if someone comes out and offer something better

IFA full report on the cheap offer :

http://infopub.sgx.com/FileOpen/Fu_Yu_De...eID=289929

Extracted from the report :

“8. CONCLUSION AND RECOMMENDATION
In arriving at our advice in respect of the Offer, we have taken into account, inter alia,
the following key considerations summarised below. This summary should be read in
conjunction with, and in the context of, the full text of this letter.
(a) Historical trading performance of the Shares;
(b) Relative Share price performance vis-à-vis the performance of the market index;
© Analysis of selected valuation statistics of broadly comparable companies to the
Group;
(d) Comparison with recent partial take-over offers of companies listed on the
SGX-ST;
(e) NTA of the Group; and
(f) Other relevant considerations.
Having carefully considered the information available as at the Latest Practicable
Date and based on our assessment of the financial terms of the Offer, we are of the
opinion that, on balance, the financial terms of the Offer are neither fair nor
reasonable given the significant discount to the Group’s NTA and taking into
account the strong net cash position of the Group as at 31 December 2013.
Accordingly, we advise the Independent Directors to recommend to Shareholders who
are prepared to take a long-term view of their investments in the Shares and/or are
confident of the prospects of the Group to REJECT the Offer. We would highlight to
Shareholders who wish to retain their Shares and not accept the Offer that the market
price and/or trading liquidity of the Shares as at the Latest Practicable Date may not
be sustained at the current levels after the close of the Offer or if the Offer lapses.
Shareholders who hold a short-term view of their investments in the Shares and who
wish to realise their holdings in the Shares in the near term may wish to ACCEPT the
Offer and/or TENDER Excess Shares if they are unable to obtain a price higher than
the Offer Price (after deducting all related expenses) on the open market.
Shareholders who accept the Offer and/or tender Excess Shares should note that
there is a possibility that their resultant residual shareholdings may, subject to the
Offer becoming unconditional in all respects, comprise odd-lots after the Offer.”

- vested

2014 unaudited full year financial report.

http://infopub.sgx.com/FileOpen/FYC_FSQ4...eID=336871

A much better year compared to 2013 with a decent full year net profit of ~$11mil. Cash holding is standing at ~$83mil and current debt of ~$1.4mil. EPS is 1.35cts and NAV at 23.23cts. Strangely that no dividend from management! Based on last's Friday closing market price, the market cap is lower than cash holding. My biased view is the stock price way under value or I am missing something?

- vested

Having worked in this industry and with fuyu previously, frankly I was not too keen in prospects of this industry.
Extremely competitive, low margin, labor intensive, and you wont know where your next meal(project) is going to come from. But at current prices, it may be worth a look, especially with the USD strengthening and oil price sliding(Oil=Resin/raw material). But their customers know this too and will ask for even bigger cost reduction. So profitability is hinged on 2 things

1. Ability to win profitable projects.
2. Ability to retain their margins on current projects.

2015 will be as good as it gets for fu yu with multiple favorable factors.

Added this to my portfolio today after studying it for awhile.

Call it speculation but I'm guessing that Fu Yu may do something similar to Global Testing in light of the Minimum Price requirement.

In any case, the business seems to have turned around with profitability in the last two years so let's see whether they decide to reward long suffering shareholders.

Fu Yu also seeing some movement today...looking forward to their AGM to get Management's views on share consolidation, prospects, dividend resumption and their plans for their almost 80m in cash...