Tsit Wing International

[brattzz]

there's a married deal done today, 2 millions shares exchanged hands at 22cts. :O

[brattzz]

Interim dividends of HK$0.015 declared for Sept 2011.

:O

[ngcheeki]

Anyway, looking forward,
1) Co. continues to focus on china mass-market, aiming 100 millions people.
2) Grab & Go concept kiosks startups.
3) More funds raising, ie, higher debt ratios..etc...
How it will work out? have to see the Q by Q reports!
Expect prices to go low over the next few Qs..

Tsit Wing Share price has dropped to 17.5 cents at the close on 14th of October with 137 lots transacted. Based on their Q22011 report, it is currently in a net cash position of 2.76 cents and trading at price to book value of 0.76. However, based on the estimated EPS of HK 6.3 cents using the S&P Q2 report, their forward PE of 17X and has a dividend yield of 4%, does not seem to be very attractive based on the current market situation.

See the following on the S&P report for Q2 result.
http://research.sgx.com/reports/rpt_view.pl?id=6543

Is it a good buy at current price of 17.5 cents? If the company's expansion plan in south china works out, it'll be an interesting stock to look at.

[brattzz]

Heya ngcheeki,

Let me try... based on gut feel... * i am vested.

1) Share options accepted by Co.directors at $0.177 range. - Positive sign that directors think company is undervalued.
2) Expansion in china - expenditure and loan gearings is up. - Normal sign during expansion
3) Revenue & profit for Qs Vs Qs : +27.5% / +2.7% - Increasing/Maintaining - Positive sign of market share increasing..
4) Dividend yield : 4% - Not attractive

Game Plan:
1) Short term gains or dividend play is not attractive.
2) Look for long term price apprecitation. (Donguan roaster plant to start operation...will increase profit margin)

Buy/accumulate in % when prices goes downwards due to EU crisis...at what price?
Mmmm.. maybe PE of 11X and below if possible?

A case of "using a longer line to catch a Bigger fish..."

I like the HK management Team, they are very shrewd, and this slow/careful/controlled expansion plans shows it.
But am also wary if they will do a quick privatisation if share price went too low. (They do time, and they tried once! 2009)

[dzwm87]

Based on their Q22011 report, it is currently in a net cash position of 2.76 cents and trading at price to book value of 0.76. However, based on the estimated EPS of HK 6.3 cents using the S&P Q2 report, their forward PE of 17X and has a dividend yield of 4%, does not seem to be very attractive based on the current market situation.

not exactly net cash position? still have other liabilities like payables, etc

[ngcheeki]

Based on their Q22011 report, it is currently in a net cash position of 2.76 cents and trading at price to book value of 0.76. However, based on the estimated EPS of HK 6.3 cents using the S&P Q2 report, their forward PE of 17X and has a dividend yield of 4%, does not seem to be very attractive based on the current market situation.

not exactly net cash position? still have other liabilities like payables, etc

Net Cash/Debt computation does not include payables as well as receivables if not the computation will be more complicated.

For Tsit Wing, the following is what I'd extracted from the Q2 Report.

Cash and cash equivalents (HK'000) = $75,808
Total Debt excluding payables (HK'000) = $39,627
Net Cash (HK'000) = $36,181
Net Cash Per share ('000) = $212,943.999
Net Cash Per share (HK) = $0.17
Net Cash Per share (S) = $0.0276

[dzwm87]

Based on their Q22011 report, it is currently in a net cash position of 2.76 cents and trading at price to book value of 0.76. However, based on the estimated EPS of HK 6.3 cents using the S&P Q2 report, their forward PE of 17X and has a dividend yield of 4%, does not seem to be very attractive based on the current market situation.

not exactly net cash position? still have other liabilities like payables, etc

Net Cash/Debt computation does not include payables as well as receivables if not the computation will be more complicated.

For Tsit Wing, the following is what I'd extracted from the Q2 Report.

Cash and cash equivalents (HK'000) = $75,808
Total Debt excluding payables (HK'000) = $39,627
Net Cash (HK'000) = $36,181
Net Cash Per share ('000) = $212,943.999
Net Cash Per share (HK) = $0.17
Net Cash Per share (S) = $0.0276

I see.. i am not sure but correct me if i am wrong.. as much as the definite calculation for net cash holds as what you have mentioned..

how will the computation complicates if we include payables?

[ngcheeki]

I see.. i am not sure but correct me if i am wrong.. as much as the definite calculation for net cash holds as what you have mentioned..

how will the computation complicates if we include payables?

If the computation includes payables, we should also include all the receivables as well in our computation right!!

[Musicwhiz]

For computation of net cash/debt, exclude all Trade Creditors and Trade Debtors. These are required for the running of any ordinary business and form part of the working capital requirements of any company.

Instead, focus on Cash and Cash Equivalents, Bank Loans, Bond Issuances and/or Convertible Debt. These should be included.

[dzwm87]

I see.. i am not sure but correct me if i am wrong.. as much as the definite calculation for net cash holds as what you have mentioned..

how will the computation complicates if we include payables?

If the computation includes payables, we should also include all the receivables as well in our computation right!!

For computation of net cash/debt, exclude all Trade Creditors and Trade Debtors. These are required for the running of any ordinary business and form part of the working capital requirements of any company.

Instead, focus on Cash and Cash Equivalents, Bank Loans, Bond Issuances and/or Convertible Debt. These should be included.

i always include total liabilities for the added conservatism.. but now i see.. thanks!