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Cheung Woh has been very quiet for the last few months with the share price slowly drifting down to S$0.25. Based on the 1st half results and analyst reports and target prices the current price would appear a steal.
Has there been any sudden turn in fortunes during the 2H. We should get to know by this month end. FY10 full year results were out on the 22nd April 2010.
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
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In anticipation of the coming FY11 (ended 28Feb11) full-year results, perhaps it is timely to visit Cheung Woh's corporate website.....
http://www.cheungwoh.com.sg/about_profile.html
, watch the video of the last FY10 Results Briefing (held 22Apr10).....
http://cheungwoh.listedcompany.com/media...index.html
, review the last FY10 AR.....
http://cheungwoh.listedcompany.com/misc/ar2010.pdf
, and lastly, review the H1 (ended 31Aug10)-FY11 results announcement.....
http://info.sgx.com/webcoranncatth.nsf/V...A00132DEE/$file/CW-Half_Year_Result_31_Aug_2010.pdf?openelement
Based on some of the candid/useful pointers given by Chairman/MD Mr K.Y. Law in the last FY10 Results Briefing (do refer to the video), and the very positive profit increase in the H1-FY11 results, I suppose it is reasonable to expect that Cheung Woh will do well in FY11 overall, likely as well as FY10, and may be even better profit wise.
In Nov10, Cheung Woh paid a $0.005/share Interim dividend (20% more than the same $0.005/share Interim dividend in FY09 if we adjust for the 1-for-5 bonus issue completed in Jul10). It is reasonable to expect a bigger Final dividend (last FY09: $0.01/share) in the coming full-year results.
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21-04-2011, 02:57 PM
(This post was last modified: 21-04-2011, 03:31 PM by dydx.)
Suddenly, there is a surge in buying today. On last counter (at 2.45 p.m.), already 1,371 lots done, and the share price has advanced $0.045, or a cool 18%, to $0.295 last done. There is also a long and crowded buy queue formed.
Quite obviously, these are people buying ahead of the expected good full-year results to be released soon. If the results do come up exceptionally good, the share price could even go up further, allowing today's buyers a chance to reap a good gain. On the other hand, if the results are only within expectation, the share price may just stall and could even fall as those short-term investors reverse their positions. We shall see.
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Well it does seem like the results should be good. The sharp increase in volumes along with the share price does foretell of good news to come. Guess, we need to wait and watch...
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Today (21Apr11), S&P issued a pre-results report on Cheung Woh.....
http://research.sgx.com/reports/rpt_view.pl?id=6461
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Today (26Apr11), Cheung Woh has announced solid profits for FY11 (ended 28Feb11) and a $0.01/share Final dividend (20% more than the same $0.01/share Final dividend in FY09 if we adjust for the 1-for-5 bonus issue completed in Jul10).....
http://info.sgx.com/webcoranncatth.nsf/V...E0011C8ED/$file/CheungWoh_Full_Year_2011_Results_Announcement.pdf?openelement [Results announcement]
http://info.sgx.com/webcoranncatth.nsf/V...E0025CA49/$file/Cheung_Woh_-_Press_Release-26-April-2011.pdf?openelement [Press release]
I thought the results are highly commendable, bearing in mind raw material (mainly steel and aluminium) prices have been rising in the last few months.
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27-04-2011, 06:16 AM
(This post was last modified: 27-04-2011, 06:19 AM by dydx.)
Today's (27Apr11) BT report on Cheung Woh, re-produced below in full...
"Published April 27, 2011
Cheung Woh posts record net profit of $17.42m
By KELLY TAY
CHEUNG Woh Technologies Ltd has posted a record net profit of $17.42 million for the full year ended Feb 28, 2011 (FY2011), up 28.8 per cent from $13.52 million the year before.
Revenue rose 21.9 per cent to $151.41 million. This growth was driven by China's robust automotive industry and an increase in hard disk drive (HDD) demand. Cheung Woh manufactures precision engineering products for both industries.
Sales of HDD components remained the largest revenue contributor of the group, growing a further 12.5 per cent to $67.30 million in FY2011. This was mostly due to an increase in demand for personal computers in consumer markets.
Riding on the bullish demand for domestic Chinese automotive brands, Cheung Woh's automotive component segment outpaced HDD component growth, jumping 55.8 per cent to $62.5 million.
The growth of these two segments managed to offset the decline in sales of precision metal stamping components, which fell by 11.5 per cent to $21.1 million.
Earnings per share rose from 5.18 cents the preceding year to 5.56 cents for FY2011.
Cheung Woh also made 'significant capital outlay' of $22.92 million for its purchase of machinery, which chairman Law Kung Ying said will provide the basis of the group's growth over the next few years.
While the company has forecast that HDD components segment will remain profitable, it acknowledged that quantity to be produced for the segment will be reduced slightly, due to upstream electronic components and material supply chain disruption caused by the Japan earthquake.
The group also expects to benefit from recent consolidations in the HDD industry, such as Western Digital's acquisition of Hitachi Global Storage Technologies, which has brought their combined global market share to just under 50 per cent.
'As a major supplier to Western Digital, we see a fantastic opportunity to grow together with them,' said Mr Law.
The group's board yesterday recommended a final dividend of one cent which, together with an interim dividend of half a cent, represents a dividend yield of 5.7 per cent based on Feb 28's closing share price of 26.5 cent.
Cheung Woh's shares closed unchanged yesterday at 30 cents."
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Following Cheung Woh's FY11 (ended 28Feb11) full-year results announcement yesterday, today (27Apr11), S&P has issued an update report....
http://research.sgx.com/reports/rpt_view.pl?id=6464
Based on Cheung Woh's better-than-expected H2-FY11 results, S&P has decided to raise their NP forecast for FY12 (ending 29Feb12) by 20.2% to $17.9m. This will translate to a forecast EPS of $0.057 (based on the latest 313.09m outstanding issued shares) for FY12. Against today's closing share price of $0.32, this gives a forward PER of 5.61x.
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Despite all the positive reports Cheung Woh seems to have lost steam very soon and is now quoting at only S$0.29. Is it a good time to accumulate more.
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
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