Tsit Wing International

[pianist]

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.

does this apply to GK Goh? i recall there are some buddies, in that thread, include payables when computing its net cash

[dzwm87]

I don't think this will be a concern. Like i mentioned earlier, i often net off cash against all liabilities to arrive at net net cash.

If GK Goh, let what you've mentioned, is valued net cash as netting away payables, etc, then that is added conservatism and smaller downside risk. It's akin to buying a business with no liabilities!

The only down side is if my personal stock filter takes in net net cash, then I might be letting go of some real value gems by using such a strict screening.

[brattzz]

Mmm... "if don't lose any money"... better to be value at "net net cash".

[brattzz]

21st Oct 2011 : Major share exchanges:

1) China Investment Fund Company Ltd sold off their placement of 20,000,000 shares at $0.1575, 9.35% total.

Announcment:
Mr. Mak Kwok Yum owns 100% of the shares in Gold Gorgeous Investment Holdings Limited. Therefore, Mr. Mak Kwok Yum is deemed to be interested in the shares of Tsit Wing International Holdings Limited held by Gold Gorgeous Investment Holdings Limited by virtue of section 7 of the Companies Act, Cap. 50 of Singapore. On 18 October 2011, Mr. Mak Kwok Yum purchased the entire shares of Gold Gorgeous Investment Holdings Limited from China Investment Fund Company Limited.

[ngcheeki]

Tsit Wing has issued a profit warning this evening. The following is extracted from the announcement.

The Group expects to record a significant decrease in profit for 3Q11 compared with
last year as a result of, inter alia:
(a) persistently high costs of production, attributed mainly to high raw materials
prices;
(b) volatile prices of the commodity market which the Group hedge or trade;
© costs incurred in the development of the Group’s Integrated Services Center in
Dongguan.

http://info.sgx.com/webcoranncatth.nsf/V...70024DF70/$file/TWG_announcement_on_profit_warning.pdf?openelement

[brattzz]

Mmmm...
things i look out for , revenue must increase, net profit must maintain.
a) Coffee bean prices goes up.
b) hedging has failed....
c) Dongguan development cost is expected...

Think this is an opportunity to pick up shares on the cheap if anyone let goes.. i'm sure that's what the owner is expecting to do also... (privatization at low prices again!)

[wsreader]

Shareholders were offered a chance to exit at 27 cents. Now with the last done price at 17.5 cents, the next privatization may be at a lower price. Placement of new shares had diluted holdings of existing shareholders, so privatization may have a higher chance of success.
Agree it is an opportunity to pick up shares at current low price for the next offer. But will shareholders who rejected the offer at 27 cents willing to sell at last done price? Perhaps a few quarters of profit warnings will do the trick.

[brattzz]

don't think the minority shareholders will have enough % to be able to block the privatization this time round, no matter what is the offered price (expect low low offer...)

it's a matter of time that the owners will use all the tricks in the bag to press the price down and pick up the free float in the market...

:O

[Contrarian]

Tsit Wing has issued a profit warning this evening. The following is extracted from the announcement.

The Group expects to record a significant decrease in profit for 3Q11 compared with
last year as a result of, inter alia:
(a) persistently high costs of production, attributed mainly to high raw materials
prices;
(b) volatile prices of the commodity market which the Group hedge or trade;
© costs incurred in the development of the Group’s Integrated Services Center in Dongguan.

Any company involved in F & B will face margin squeeze with the weather havoc causing raw materials to shoot up > 30%.

[ngcheeki]

Tsit Wing has made an announcement this evening that they're assessing the feasibility in listing in HKSE.

The following are the rationale:
The Board is of the view that having a dual listing status in both Singapore and Hong Kong could be beneficial for the Company,
as the Company can have ready access to these different equity markets in the Asia Pacific region when the need arises. The two markets attract different investor profiles and will thereby widen the investor base of the Company and increase the
liquidity of the Shares. The Proposed HK Listing is also in line with the Group’s focus on its business operations in the People’s Republic of China, which is important for the Group’s long term growth and development and if given effect to, the Proposed
HK Listing will enhance the reputation of the Group in the greater China region

See the following link for more information:
http://info.sgx.com/webcoranncatth.nsf/V...9003028D4/$file/AppointmentofBaronCapital.pdf?openelement

By the way, Tsit Wing also the 3 months to September 2011 result on 9 Nov and the company incurred a loss of HKD 4,160 versus a gain of HKD7,363 (3Q2010).
Earning for 9 months to 3Q 2011 was HKD1,329 versus HKD22,525 or dropped by (94.1)%
NAV : 137.7 HK cents (141.7 HK cents: 2010)
Prospect statement:
The business environment is still very challenging. Raw materials cost, particularly coffee bean & tea
leaves, remains on high level which affects adversely on our gross margin. Coupled with rising rental &
higher labor cost, our catering customers are so cost sensitive that we can only pass part of the higher
cost to them.
In FMCG market, our competitors keep on new product launches with heavy advertising & promotion
support recently

See the following for more detail.
http://info.sgx.com/webcoranncatth.nsf/V...30032D043/$file/TWIH_Results_announcement.pdf?openelement