Fischer Tech

[HitandRun]

With oil prices that low, I guess soon or later prices of plastic resins - the key raw material for Fischer's plastic components manufacturing business - will fall by a big margin, and this will translate to quite substantial cost savings to Fischer and other plastic components manufacturers

Dydx-san

Although I also have vested interests in this counter and FEEL that it will break 20cts soon , your statement is probably wrong, i.e. AFAIK contract manufacturers do not typically take risks on material costs. In other words, the savings will be passed directly back to the customer....

[dydx]

With oil prices that low, I guess soon or later prices of plastic resins - the key raw material for Fischer's plastic components manufacturing business - will fall by a big margin, and this will translate to quite substantial cost savings to Fischer and other plastic components manufacturers

Dydx-san

Although I also have vested interests in this counter and FEEL that it will break 20cts soon , your statement is probably wrong, i.e. AFAIK contract manufacturers do not typically take risks on material costs. In other words, the savings will be passed directly back to the customer....

Well, when plastics (raw material) prices fall, rationally speaking there should be a positive lag effect for the contract manufacturers before part of or all the cost savings are passed on to the OEMs (customers). There are those common commodity-typed plastic components - where their selling prices have been already pressed down to the bones by the OEMs - for which the CMs now would resist any further price-down when prices for their plastic raw materials fall. Also, lower plastics prices may mean less price-down pressure going forward from the OEMs, and may also mean for the CMs bigger orders from the OEMs driven by rising worldwide demand for certain products due to their lower selling prices. Whatever it is, falling plastics prices should be positive to well-established contract manufacturers like Fischer.

[specuvestor]

^^ Actually it depends. Some are "value add services" and some are turnkey.

The former means the customer sources for the materials so the CM doesn't bear material risk. The trick here is that most don't book the value add as sales but the entire amount as sales to boost their topline. Apple as customer is a case in point.

Turnkey means the CM will take the material risk. Most PC CM including Honhai and Quanta/ Compal are in this category.

So you have to know which category Fischer clients are in.

[dydx]

Today (6May15) Fischer closed up $0.005, or 2.6%, at $0.194 - a 5-year high! It looks like there are investors who are willing to pay higher prices in anticipation of perhaps a positive set of FY15 (ended 31Mar15) full-year results - expected by end-May - and perhaps also a nice final dividend.

[bear]

Announcement of the resignation of an executive director due to health reasons.

http://infopub.sgx.com/FileOpen/FischerT...eID=348807

RESIGNATION OF EXECUTIVE DIRECTOR
The Board of Directors of Fischer Tech Ltd ("the Company") wishes to announce that Mr
Tay Kok Leong, an Executive Director, has resigned as a director of the Company with
effect from 8 May 2015.
The Board wishes to express its appreciation to Mr Tay Kok Leong for his services and
invaluable contribution to the Company.
The detailed template announcement pursuant to Rule 704(7) of the Listing Manual of
the SGX-ST in relation to the cessation of the director is contained in a separate
announcement today.

[bear]

Full yearly results for Fischer Tech should be announced next week or early June.
Will take note of the Automotive and Healthcare revenue breakdown,as well as the latest NAV per share(based on last half year report,is at 32.20cts).

Last week Fischer Tech price closed up to a new high of $0.20,but remains at a huge discount to the NAV.

Hope for a decent dividend also.

[Bubbachuck]

Fischer looks cheaper than Memtech. However Fischer has a very low ROE compared to Memtech.

[dydx]

The FY15 (ended 31Mar15) full-year result just out....

http://infopub.sgx.com/FileOpen/FT_Annou...eID=353165

Solid progress made in the PRC auto sector, and Fischer's ungeared and rock-solid B/S continues to strengthen.

The higher total of $0.01/share (vs. $0.006/share in last FY) in final and special dividends is music to my ears!

[bear]

Based on yesterday price of $0.20 declaration of a total of $0.01/share of dividend is a decent 5.0% yield.
Having said that, today there seems a be a re-rating of Fischer Tech as it jumped 10% to $0.22.
At the current price the dividend yield is still maintained at a respectable 4.5%,with a NAV of 35.04 cents, compared to 31.12 cents just a year ago.

A note from the statement of cash flow,the Net Proceeds from disposal of associated companies,which according to Fischer Tech on its 10th Dec 2014 announcement indicate that it is the 38% equity interest in Zeito International, a company incorporated in PRC specializing in the manufacture and assembly of plastic components and keypads, but recently moving into the same high precision plastics components competing field with Fischer Tech. The disposal of equity interest in Zeito International helps Fischer Tech to offset some of its negative Cash flows from investing activities.

The only concern is whether Fischer Tech can maintained their continued growth in China Automotive sector for FY2016, given the car sales in China market slowing down going forward.

[bear]

I was wondering about the reason for the heavy sell-down these few days.I thought there was some bad news released these few days.
Upon a quick search on the SGX website, the latest company announcement was last Monday's full yearly results,after which Fischer Tech's experienced a brief re-rating to 22 cents, followed by the recent low of 19.1 cents.
Which means that at the current price of 19.x cents(as of today's closing) dividend yield(at 1 cent/share) stands at 5.x% again.

With the Automobile segment's revenue increasingly at a steady pace(though chances are the pace of increase may slow down),an increase in cash and cash equivalents from S$28 million to S$36 million and NAV increment from 31 cents to 35 cents, CEO Mr Tan might be continuing to increase his shareholdings of Fischer.