Fischer Tech

[dydx]

From your view, do you think the revenue is sustainable?

You can refer to the 5-year historical Financial Highlights in p10 of the latest FY13 AR to appreciate/verify the sustainability of Fischer Tech's past revenue track record - which I believe is quite a reliable basis to project into the future. Revenue aside, I guess it is much more important to look into the business' profitability (as measured by GP, PBT and NP) and cash generation (as measured by EBITDA). As the operating environment for the plastic components industry has remained tough in the past few years, the upward spike in Fischer Tech's profitability and EBITDA in the latest FY13 - as emphasised in the Letter to Shareholders jointly written by Chairman Foo Meng Tong and President/CEO Tan Choon King - is very much the result of the senior management's strategies and efforts in right-sizing the business and strengthening its technical capabilities and fundamentals in the last few years. I guess such a positive change in the business should sustain on its own momentum and hopefully for some time.

I am happy to note that among the latest 20 Largest Shareholders (see p102 of the latest AR) are Lee Ah Bee (retired ex-Chairman of Amtek Group), Janice See (experienced remisier in UOB Kay Hian), and Yong Kin Sen (MD of listed Nam Lee Pressed Metal Industries). Not that we should follow them, but these experienced business people do add confidence.

[wsreader]

2. sales of asset, and
3. lack of write-off from the previous year.

Without considering 2 and 3, profit will be around $6.6m.

The adjustment for 3 should be to add the write-off back to previous year's profit rather than to deduct from this year's profit, imho.

[NTL]

From your view, do you think the revenue is sustainable?

You can refer to the 5-year historical Financial Highlights in p10 of the latest FY13 AR to appreciate/verify the sustainability of Fischer Tech's past revenue track record - which I believe is quite a reliable basis to project into the future. Revenue aside, I guess it is much more important to look into the business' profitability (as measured by GP, PBT and NP) and cash generation (as measured by EBITDA). As the operating environment for the plastic components industry has remained tough in the past few years, the upward spike in Fischer Tech's profitability and EBITDA in the latest FY13 - as emphasised in the Letter to Shareholders jointly written by Chairman Foo Meng Tong and President/CEO Tan Choon King - is very much the result of the senior management's strategies and efforts in right-sizing the business and strengthening its technical capabilities and fundamentals in the last few years. I guess such a positive change in the business should sustain on its own momentum and hopefully for some time.

I am happy to note that among the latest 20 Largest Shareholders (see p102 of the latest AR) are Lee Ah Bee (retired ex-Chairman of Amtek Group), Janice See (experienced remisier in UOB Kay Hian), and Yong Kin Sen (MD of listed Nam Lee Pressed Metal Industries). Not that we should follow them, but these experienced business people do add confidence.

Hi dydx,

Will follow the company for another year or so to see their performance.

Thank you.

---

2. sales of asset, and
3. lack of write-off from the previous year.

Without considering 2 and 3, profit will be around $6.6m.

The adjustment for 3 should be to add the write-off back to previous year's profit rather than to deduct from this year's profit, imho.

Hi wsreader,

What I mean is in last year result, they have the addition write-off of $7.1M, which does not appear again this year, thus give a boost to this year result compare to last year. (Though last year they had made an insurance claim of $4.9M)

Hopes this clarify my previous statement.

[dydx]

On 19Sep13 (yesterday), President/CEO Tan Choon King acquired 20,300,000 shares from Ono Sangyo Co Ltd (4th largest shareholder) at a very attractive price of $0.125/share.....
http://infopub.sgx.com/FileOpen/Form1Pet...eID=257011
and emerged as the largest shareholder with a holding of 67,923,332 shares, or a 24.86% interest.

On the same day, ED Tay Kok Leong also acquired 2,500,000 shares from Ono Sangyo Co Ltd at the same price of $0.125/share.....
http://infopub.sgx.com/FileOpen/Form1Tay...eID=257017
and this has raised Tay's shareholding to 7,510,000 shares, or a 2.75% interest.

I suppose the above 2 purchases confirm Tan's and Tay's commitment to and confidence in Fischer-Tech's business.

[NTL]

CIMB has a write up for Fischer today. No target is given.

https://cimbequityresearch.cimb.com/EFAO...5B0&A=CIMB

Look like this little stock is getting noticed.

[CityFarmer]

CIMB has a write up for Fischer today. No target is given.

https://cimbequityresearch.cimb.com/EFAO...5B0&A=CIMB

Look like this little stock is getting noticed.

May be the hint is from VB, or more specifically from dydx.

[NTL]

CIMB has a write up for Fischer today. No target is given.

https://cimbequityresearch.cimb.com/EFAO...5B0&A=CIMB

Look like this little stock is getting noticed.

May be the hint is from VB, or more specifically from dydx.

I wonder what is dydx's occupation...

[dydx]

I wonder what is dydx's occupation...

Just a serious investor and a believer in low-risk value investing principles.

[NTL]

I wonder what is dydx's occupation...

Just a serious investor and a believer in low-risk value investing principles.

Hahaha. I do not really except an answer. It was just an open remark.

[CY09]

Fischer reported its FY results, its net current assets is $44.4M, NAV is 85M, yet its trades at a current market cap of $35.5M ($0.13).

It is in a net cash position of $14.4M, or 31,8% of its mkt cap. Free cash flow is about 1.9 cents/share (excluding the one-off disposal of ST-investments. This means its P/FCF 6.78X with P/E of 5.37X. Div yield of 4.6%. 75% its profits came from the 2H of the FY which saw a rise in revenue and profits. This was mainly due to a stronger automotive segment which mgmt has been focusing lately by increasing production capacity and purchasing PPE. If it is able to replicate 2H results across Fy 15, a 3 cents EPS is possible.

Seems like its metrics is better than Sunningdale as of now.