New Toyo

Another round of special dividend to come?

****

Looking ahead at 2014, while market conditions may
appear more uncertain, the business sentiments in the
industry we operate in remain positive and we also see
opportunities. We will continue to embark on initiatives to
improve our bottom line and to reward our shareholders
whenever possible.

how much additional rental can be milked from the 3.5 Ha of land?

(04-03-2014, 03:15 PM)Young Investor Wrote:

(04-03-2014, 09:42 AM)Curiousparty Wrote: New Toyo cited one-off cost for restructuring in its Q4 results.

" In Q4FY2013, the increase in other operating expenses was mainly due to recognition of termination benefits in accordance to FRS 19 following the Group's decision to relocate a printing press to a lower cost production country and higher amortisation for intangible assets. " (New Toyo's Q4 Results)

How many printing presses are there in Anzpac?
If there is only one, does this imply that Anzpac is closing down? Then who else will serve BAT in Australia?
Will New Toyo lose this segment of the business to some other printers (say Amcor) in Australia?
Does this also imply that printing volume is coming down so sharply in Australia so much so that the reduced volume (i.e. losing economies of scale) does not justify New Toyo to have printing operations in Anzpac or Australia anymore?

All these are the questions that are worth thinking. tks

Tien Wah is bound to serve BAT(Australia) until Dec 2015. It is likely to print elsewhere (ie Malaysai or Vietnam).
If Anzpac is shutting down or downsizing its factory in Sydney, it is good news, as part or all the freehold land will become available. The 3.5 hactare land is too large for the little jobs.

(18-04-2014, 12:48 PM)Curiousparty Wrote: how much additional rental can be milked from the 3.5 Ha of land?

(04-03-2014, 03:15 PM)Young Investor Wrote:

(04-03-2014, 09:42 AM)Curiousparty Wrote: New Toyo cited one-off cost for restructuring in its Q4 results.

" In Q4FY2013, the increase in other operating expenses was mainly due to recognition of termination benefits in accordance to FRS 19 following the Group's decision to relocate a printing press to a lower cost production country and higher amortisation for intangible assets. " (New Toyo's Q4 Results)

How many printing presses are there in Anzpac?
If there is only one, does this imply that Anzpac is closing down? Then who else will serve BAT in Australia?
Will New Toyo lose this segment of the business to some other printers (say Amcor) in Australia?
Does this also imply that printing volume is coming down so sharply in Australia so much so that the reduced volume (i.e. losing economies of scale) does not justify New Toyo to have printing operations in Anzpac or Australia anymore?

All these are the questions that are worth thinking. tks

Tien Wah is bound to serve BAT(Australia) until Dec 2015. It is likely to print elsewhere (ie Malaysai or Vietnam).
If Anzpac is shutting down or downsizing its factory in Sydney, it is good news, as part or all the freehold land will become available. The 3.5 hactare land is too large for the little jobs.

Since you are talking about the 3.5 hactre of land, let me throw you some challenges.... I am sure you heard about the recently announced 2nd Airport of Sydney? Have you checked out where is New Toyo land vis-a-vis the new airport? Ha ha .... With google map, it is not too difficult to find out .... I am vested...

about 30 min drive. So what about the new airport?

how much rental yield can be obtained if the 3.5 ha is used as a logistic base?
there is so much land in Australia....land is cheap...

(18-04-2014, 11:09 PM)Curiousparty Wrote: about 30 min drive. So what about the new airport?

how much rental yield can be obtained if the 3.5 ha is used as a logistic base?
there is so much land in Australia....land is cheap...

ya, there is so much land in Australia... There is also so much land in China .... What is the land value in Shanghai compared with Xinjiang... There is so much land in Northern Territory and there is ONLY so much land in Sydney.... I am vested...

Hi xlandjy

Would like to seek your views on the following:-

a. Possibility of buy-out of Yen family's share at New Toyo by Amcor (largest player in the world) or MM Packaging (the largest player in Europe), since both father and son are now NO LONGER in board. Of course, there might be the danger that the printing business will run itself down since young Gary is not interested in the family business. Hence, it is best to sell off now, rather than later. There is also the BIG RISK that BAT might not renew the contract with New Toyo/Tien Wah. This risk cannot be ruled out completely.

b. Possibility of further rounds of special dividends. Business is self-sustainable and pays for itself. There is just too much cash lying around (i.e. $60mil) and there seems to be a lack of viability investment projects (with risk/reward better than current core business) to invest in. Company had been proactively looking for new investments for the past few years but to no avail. Is the cash there just to "attract bidders" for buy-outs? If valuation of business is based on recurring EBITDA, then cash SHOULD NOT be a factor. New Toyo's EBITDA has been stable at around $40-45 mil for last few years, and Amcor has been acquiring companies based on EBITDA valuation ( between 5 to 7 TIMES EBITDA historically).

c. The annual report also alluded to new opportunities and expanding the market share for the PCL business (page 5). What are the new opportunities being referred to? Is it about BAT making inroads in Myanmar and the Philippines, hence bringing more printing business? More specialty paper business from the PMI? Specialty paper business has made a big comeback with new product ranges and increased sales to Middle East and Sub-continent.

d. Asia Pacific market (which includes China, India, Indonesia, Vietnam, etc.) is the world's biggest market for tobacco. How is New Toyo going to capture new printing business ?

http://www.businesswire.com/news/home/20...1Nh3MJZopg

PMI fared particularly bad in Asia Pacific, losing market share etc. Does this mean that BAT and hence New Toyo/Tien Wah will fare much better in comparison?

Industrial land price is trending DOWN in New South Wales, especially Smithfield (-ve 6%). This is supported by Table 7 at the following link.

http://www.valuergeneral.nsw.gov.au/your...and_values


Nothing to rejoice about!

(19-04-2014, 07:26 AM)xlandjy Wrote:

(18-04-2014, 11:09 PM)Curiousparty Wrote: about 30 min drive. So what about the new airport?

how much rental yield can be obtained if the 3.5 ha is used as a logistic base?
there is so much land in Australia....land is cheap...

ya, there is so much land in Australia... There is also so much land in China .... What is the land value in Shanghai compared with Xinjiang... There is so much land in Northern Territory and there is ONLY so much land in Sydney.... I am vested...

(23-04-2014, 12:16 PM)Curiousparty Wrote: Industrial land price is trending DOWN in New South Wales, especially Smithfield (-ve 6%). This is supported by Table 7 at the following link.

http://www.valuergeneral.nsw.gov.au/your...and_values


Nothing to rejoice about!

(19-04-2014, 07:26 AM)xlandjy Wrote:

(18-04-2014, 11:09 PM)Curiousparty Wrote: about 30 min drive. So what about the new airport?

how much rental yield can be obtained if the 3.5 ha is used as a logistic base?
there is so much land in Australia....land is cheap...

ya, there is so much land in Australia... There is also so much land in China .... What is the land value in Shanghai compared with Xinjiang... There is so much land in Northern Territory and there is ONLY so much land in Sydney.... I am vested...

In this internet age, you are using historical data which are more than 16 months old. At that time, there was no Xi Jin Ping, Aussie PM was a lady .... try surfing the net for more up to date data lah...

At least there is some historical basis for what I said. If you go and take a good look at the data, u can see that the land price in Smithfield has declined in more than one year. this goes to say a lot about the value of land in that part of Sydney.

If there are more up to date data, everyone in this world will become property guru...haha

(23-04-2014, 02:58 PM)xlandjy Wrote:

(23-04-2014, 12:16 PM)Curiousparty Wrote: Industrial land price is trending DOWN in New South Wales, especially Smithfield (-ve 6%). This is supported by Table 7 at the following link.

http://www.valuergeneral.nsw.gov.au/your...and_values


Nothing to rejoice about!

(19-04-2014, 07:26 AM)xlandjy Wrote:

(18-04-2014, 11:09 PM)Curiousparty Wrote: about 30 min drive. So what about the new airport?

how much rental yield can be obtained if the 3.5 ha is used as a logistic base?
there is so much land in Australia....land is cheap...

ya, there is so much land in Australia... There is also so much land in China .... What is the land value in Shanghai compared with Xinjiang... There is so much land in Northern Territory and there is ONLY so much land in Sydney.... I am vested...

In this internet age, you are using historical data which are more than 16 months old. At that time, there was no Xi Jin Ping, Aussie PM was a lady .... try surfing the net for more up to date data lah...