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The Group expects to report a loss for 3QFY2018 as the production of Baseplates has not
reached its target yield. Production was also disrupted due to the following reasons:
(i) Down-time to repair and reset some machines that were damaged by heavy rainfall
caused by Typhoon Hato.
(ii) There was a temporary shortage of manpower as some workers had left after the
typhoon.
Wonder if they have insurance for it?
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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Profit Guidance for 4QFY2018
Cheung Woh Technologies Ltd issued a profit guidance in respect of the fourth quarter financial results for the period ended 28 February 2018 ("4QFY2018").
The Group expects to report a loss for 4QFY2018 due to the following reasons:
(i) Lower turnover in Baseplates in February 2018 due to long shut down period in China for Chinese New Year
(ii) Headcount depletion before and after Chinese New Year led to hiring of temporary subcontract workers with higher wages
(iii) There was a one-time amortisation expense arising as a result of change in useful life of toolings and fixtures used in the manufacturing of Baseplates
(iv) There was an allowance for impairment on equipment that are no longer required in the manufacturing of Baseplates
(v) There was a write-off of tools and equipment and renovation damaged by Typhoon Hato
(vi) There was staff cost incurred due to internal restructuring
(vii) Costs incurred to repair machinery and equipment damaged by the typhoon.
The profit guidance is based on preliminary review of the Group’s unaudited financial results for 4QFY2018. Further details on the Group’s performance will be disclosed when the company releases the unaudited financial statements for 4QFY2018 on or before 27 April 2018.
Specuvestor: Asset - Business - Structure.
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Kept making losses and still offer go price high high, salute
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yes sir, it's still a OPMI friendly owner.. congrats and best wishes for their future!
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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The Law's are reasonable and fair people, but I am certain the GO at $0.285/share is still below the intrinsic value and the RNAV, as Cheung Woh holds quite a few old industrial properties in Malaysia (Penang and Johor) and China (Zhuhai). So there should be some extra value left for them still..
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Hi dydx,
The IFA report is out. Assets had been revalued, with around $7m plus revaluation surplus. Valuation certificates and reports can be found in the Appendix of the document. RNAV per share goes up to 25.87cts after taking into consideration revaluation surplus of properties and tax liabilities. Offer price is at 1.1x P/RNAV.
IFA opinion is that the financial terms of the offer is fair and reasonable. I guess not many will disagree with IFA opinion. The question is, will shareholders take cash or the New Offeror Share?
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Most minority shareholders will take cash as $0.285/share is more than fair considering most other GOs by controlling shareholder are way below intrinsic value. Don't just take in the RNAV/share at $0.2587 as the real value, as the latest NAV/share is after a big accounting provision on deferred tax liabilities linked to offshore profits. Surely by offering the minority shareholders $0.285/share, the Law Family would keep some extra value for themselves as incentive to privatise the company.
Those interested in considering taking New Offeror Shares as consideration - it may not be a bad idea - should call up the Laws for a chat.
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I accepted the cash offer today. I’ve held onto this one for over a decade - didn’t lose ... but the return at the end-of-the-day was modest. Perhaps Cheung Woh’s real estate interests have more value than the IFA would have us believe - but on reflection my sense is the Law’s have made a reasonable offer for taking-out the minorities in this loss-making business. I did not relish the idea of holding an interest in a non-listed vehicle and so I’m cashing out. My hunch is the Law’s will surpass the 90% threshold rather promptly.
Vested, about to cash-out. Stay well everyone.
RBM, Retired Botanic MatSalleh