Tsit Wing International

[brattzz]

The long thread was gone with the last forum.. :O

Restart with this?

Last major event was Mr Yeo off-loaded 5 millions units at 19 - 21 cts.
Share prices has creeded upwards to around 26 to 27.5 cts recently...

Quiet and steady counter..

[ngcheeki]

I was lucky to pick up some @ 21 cents when Yeoman sold off some of his holding but has already sold them off @ 24.5 cents for
some kopi money

Will wait of opportunity to pick up some if he does another round of selling!! .

[Drizzt]

lost track of this stock. i tot it went private

[brattzz]

nearly went private... lolz!

[brattzz]

small 23 lots brought up today at 25.5cts...

[dydx]

The just released FY10 (ended 31Dec10) AR makes interesting reading.....
http://info.sgx.com/listprosp.nsf/6c6be9...10012f18a/$FILE/56834-21-03-E.PDF

While rising coffee and black tea prices continue to hurt overall profit margins, Tsit Wing continues to maintain a solid B/S and a strong hold on Hong Kong's catering market segment. It is also relevant to note that the PRC market is finally taking off; in FY10, revenue from PRC increased a solid 42.7% yoy to HKD107.2m. Full details of segment information can be found under Note 41 (p101 to p104).

Without doubt, PRC will be the main growth driver in the next few years. If Tsit Wing can make PRC another steady/increasing profit earner over time, it should also bring about a lot more shareholder value.

Tsit Wing shareholders can look forward to the coming HKD0.035/share (equivalent to approx. $0.00578/share) Final dividend, with "XD" date fixed on 10May11, and payment on 1Jun11.

[brattzz]

today was the AGM at scotts, grand hyatt singapore, manged to attend thought i would missed it!
Saw a few familiar faces, Mr Wong from Yeoman Capital, Kasey..etc, and got to know a couple of frens!

Apparently, a shareholder was quite disappointed with the company, he had sold off his holdings in a married deal of 1,400 lots @ 24cts made and going by today's SGX's volume, it was deal in the afternoon! :O

well, i'm still holding on to mine! why?

2010/2011/2012 - 3 yrs expansion plans to raise total of HK$150 millions.
To be funded by : Equity & debt.

From Mr Wong Tat Hong - Co. will continue to focus on china growth, Pearl River delta & Yangtze river delta region of 100 million people.
HK market is already saturated. Minimum profit margins expected.

From Mr Keith Wu - (Appears to be the person in charge of funds raising)
1) - 20,000,000 new shares @ 24.5cts (SGD$5millions) were placed by Baron Capital to Chinese Investment Fund.. HKSE 621?
10.4% dilution, which brings the traded price down to 22cts estimated.
Not sure why go to so much trouble to raise just SGD$5M?

2)- Another bank loan with BOC in the pipeline.

AND! surprisely, Mr Wong Tat Pui was voted out of the board by Mr Wong Tat Hong.. (based on the share counts)..
internal family issue? :O

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..

[dydx]

There is now a new corporate video in Tsit Wing's website....
http://www.twcoffee.com/eng/company_p2_s1.php

Watch it to get a good idea of Tsit Wing's current business, management philosophy, and business strategies, and also pick up some business Cantonese from Chairman/CEO Wong Tat Tong.

[dydx]

S&P has issued an update report (dated 13May11) on Tsit Wing, following the Q1 (ended 31Mar11)-FY11 results.....
http://research.sgx.com/reports/rpt_view.pl?id=6489 [S&P report]
http://info.sgx.com/webcoranncatth.nsf/V...D0046EEB9/$file/TWIH_Results_Announcement_Q12011.pdf?openelement [Q1-FY11 results]

Despite the lacklustre Q1 results, I am comforted by the following para from the S&P report...
"We lower our FY11 net profit forecast by 10.8% to HKD18.2 mln to
reflect margin compression from higher-than-expected coffee beans
prices and shifting of more business from tea bistros to quick-service
restaurant chains. We expect Tsit Wing to perform better in 2H11 when
margin pressure should ease with stabilizing commodity prices and
shorter contracts with clients to better match locked-in raw material
costs."

Indeed, international coffee bean prices have corrected sharply downwards - by some 8.4% based on the ICO composite indicator; or by some 10% based on Brazilian Naturals (Arabica beans) - from the recent historical peak recorded on 3May11.....
http://www.ico.org/prices/pr.htm
There is just too much mindless speculation on commodities for short-term price gain and movement by financial investors in this world!

I now look forward to the coming HKD0.035/share Final dividend payment on 1Jun11.

[dydx]

Just checked my bank account and noted a nice credit from Tsit Wing's HKD0.035/share Final dividend for FY11. Feeling good!

I am impressed by the recent Corporate News available from Tsit Wing's website.....
http://www.twcoffee.com/eng/news_p1.php
There is enough evidence that Tsit Wing's management has been working hard in launching new products and in corporate/product marketing. Quite clearly, the coffee and black tea markets in Hong Kong and PRC are valuable and certainly worth fighting for!