Hiap Seng Engineering

[Stockerman]

Still no news of CPIB investigation?

Seems that the financial performance of company is going downhill year after year since FY2010...

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Hiap Seng Engineering on Thursday reported a loss of $2.23 million for the fourth quarter ended March 31, 2012, despite a 21.3 per cent increase in turnover to $39.34 million.

The group, which posted a profit of $0.71 million a year ago, explained that the loss is due to the increase in administration costs and the share of loss of associated companies, primarily due to the low level of operations in Thailand.

For the full year ended March 31, the group made a profit of $4.28 million, representing a 46.7 per cent decrease from a year ago.

Cumulative turnover fell 11.1 per cent to $167.5 million from a year ago, due to lower revenue recognition.

Consequently, earnings per share for the year fell to 1.41 cents from 2.64 cents a year ago.

A 0.5 cent per share final dividend has been recommended, with an interim dividend of one cent per share paid earlier in the year, the total dividends for FY2012 is 1.5 cents per share. A year ago, it paid a total of 2 cents per share in dividends, comprising of interim and final dividends of one cent per share each.

[rijk]

whatever happened with the cpib investigation?

stock price is near all time low
valued around 66% tbv
minimal debt = staying power
25% insider ownership
several new contract awarded this year

what's not to like?

regards
rijk

[cyclone]

Hiap Seng Secures Two Contracts Totalling S$53 Million

1. Provision of engineering, procurement, construction and commissioning works for Sebarok Tank Expansion project awarded by Vopak
2. Clinched Mechanical & Piping contract from SRC 

More details in http://infopub.sgx.com/FileOpen/HSEL_Con...eID=493977

[cyclone]

Proposed Renounceable Non-Underwritten Rights Issue of Up to 151,875,000 New Ordinary Shares of the Company

The Company is offering up to 151,875,000 new Shares (the "Rights Shares") at the issue price of S$0.05 per Rights Share ("Issue Price"), on the basis of one (1) Rights Share for every two (2) existing Shares held by the Shareholders as at the Books Closure Date.

More details in https://links.sgx.com/FileOpen/HSEL_RI_A...eID=574725

[dreamybear]

According to AR2016, 2017, HSE was net cash & trade rec > trade payables but borrowings seem to have spiked in recent years. In the business environment, it seems a company can change its fortune in a short span, i.e. from net cash to being geared.

Doesn't seem to be doing well recently but I guess the saving grace cld be its properties : "It noted that the group has not recorded in its financial statements unrealised surplus of about S$67 million on revaluation of its properties, based on valuations carried out as at March 31, 2019."

https://www.businesstimes.com.sg/compani...tructuring

[dreamybear]

APPLICATION BY HIAP SENG ENGINEERING LTD TO BE PLACED UNDER JUDICIAL MANAGEMENT
"The Board of Directors (the “Board”) of Hiap Seng Engineering Ltd (the “Company”) wishes to announce that the Company and its subsidiary, HS Compression & Process Pte Ltd (“HSCP”), have today, each filed applications (the “JM Applications”) in the High Court of the Republic of Singapore (“Court”) for, amongst others, orders that the Company and HSCP be placed under judicial management pursuant to Section 227B of the Companies Act(Cap. 50) of the Republic of Singapore (the “Companies Act”). The JM Applications will be heard on a date to be fixed by the Court."

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https://links.sgx.com/FileOpen/HSEL%20-%...eID=625366 [announcement]

[¯|_(ツ)_/¯]

The Board of Directors (the “Board”) of Hiap Seng Engineering Ltd (the “Company”) refers to its announcement dated 28 July 2020 (the “JM Announcement”). The Board wishes to announce that the JM Applications have been fixed to be heard on 15 September 2020 at 2:30 p.m. in the High Court. 
https://links.sgx.com/FileOpen/HSEL_Upda...eID=628088

1Q Result as at 30 Jun 2020
Rev $9m (vs 43m)
GP  $1m (vs  2m)
NP  $1m (vs -1m)

The Group’s operations are primarily in the process sector of the oil and gas industry and its business is reactive to the economic sentiments surrounding crude oil prices. However, in the past few years, crude oil prices crept downwards for various reasons, and this year, COVID19 contracted the demand for oil significantly. These various developments culminated in a collapse of crude oil into negative prices this year for the first time in known history.

Against this backdrop, the Group observed a significant shrinkage in the number of plant construction projects, lower bids and capital expenditure, thinner margins and a general belt tightening policy of project owners. Additionally, it’s various partners and stakeholders were increasingly seeking delays, deferments and various compensations.

The Group is presently in financial distress due to difficulties faced with its liquidity. It had gone through intense competition and higher-than-expected operating costs which resulted in a weak and challenging financial health condition. These cost overruns were mainly due to delays in project work commencement and harsh market conditions. Due to COVID-19 safety measures and restrictions, the Group expects further increases in operating costs.

The Company had been pursuing all available avenues to ease its financial woes and to generate cash. Further to this, the Company’s subsidiary, Hiap Seng Engineering (Thailand) Co., Ltd. (“HSE Thailand”), had put the Group’s non-core assets in Thailand, comprising its factory buildings, workshop and two-storey building (“Property”) together with plant and equipment (“Assets”) up for sale since the beginning of this year.

Despite having been marketed for more than 5 months, due to the COVID-19 pandemic, HSE Thailand only recently received a formal offer from a third party buyer (“Buyer”) of Thailand Baht (“THB”) 300 million (approximately S$13 million) and consequently, HSE Thailand had on 3 July 2020 entered into sale and purchase agreements (“SPAs”) for the Property and the Assets.

Pursuant to the SPAs, the Buyer had paid THB 2 million as a deposit and was supposed to pay a further THB 88 million on 15 July 2020. However, the Buyer has to date not yet paid the THB 88 million. HSE Thailand is currently consulting with the Buyer and will make an announcement via SGXNET as and when there are any material developments.

The Company has consulted with, amongst others, various professional advisors and particularly, RSM Corporate Advisory Pte. Ltd. Based on the internal projections prepared, the Group would likely be in a cash negative position this year. Accordingly, the Board has concluded that the Company is unable to continue operating as a going concern and further thereto, on 28 July 2020, the Company and its subsidiary HS Compression & Process Pte Ltd (“HSCP”), each filed an application in the High Court of Singapore for, amongst others, orders that they be placed under judicial management pursuant to Section 227B of the Companies Act. Judicial management is a method of debt restructuring where independent judicial managers are appointed to manage the affairs, business and property of a company under financial distress. The Company is also temporarily shielded from legal proceedings by third-parties, giving it the breathing space and opportunity to rehabilitate. 

https://links.sgx.com/FileOpen/HSEL_Upda...eID=628088

Stay home and stay healthy, valuebuddies.

[dydx]

Counter under voluntary suspension since 28Nov19, at which point the last done was $0.02. Before that, Hiap Seng tried to raise up to $7.4m (net of expenses) in fresh capital by way of a non-underwritten 1-for-2 renounceable rights issue priced at $0.05 per new share (a discount of approx. 31.5% to the last traded price of $0.073) first announced on 14Aug19, and the issue was backed by the founding Tan Family with a 26.6% interest. Unfortunately the rights issue was not well received and supported by the minorities and market, and the company cancelled it on 18Oct19.

Now Hiap Seng is going for JM, pending a High Court decision on or after a hearing scheduled for 15Sep20. Meanwhile, the company is facing payment demands from creditors, and is trying to raise cash by selling its factory and related assets in Thailand for THB300m/approx. $13m. All stakeholders are suffering under Hiap Seng's financial woes, and invariably the business will suffer too as customers, for own interests, would move their requirements elsewhere. Let's hope that Hiap Seng would not end up in a liquidation.

[¯|_(ツ)_/¯]

The Board wishes to announce that the Court has on 15 September 2020 granted the JM Applications.
https://links.sgx.com/FileOpen/HSEL_Upda...eID=631755

Stay home and stay safe, everyone.