Fischer Tech

[dydx]

Fisher Tech has contracted to sell its industrial property at 3 Loyang Street - 1 of the 3 industrial properties owned by the group in Singapore - for S$5.2m (in line with current market valuation) cash and, upon completion of the sale, will book a gain in excess of approx. $3.7m (against the property's corresponding BV of $1.39m as at 30Sep11).....
http://info.sgx.com/webcoranncatth.nsf/V...90032931B/$file/FischerDisposalAnnouncement220312.pdf?openelement
Based on Fischer Tech's latest (as at 30Sep11) 273.205m outstanding issued shares, the gain will raise EPS and NAV/share - $0.2746 as at 30Sep11 - by $0.0135.

With such great asset inflation in Singapore over the years, we should always bear in mind there is a lot of hidden extra value in even old leasehold industrial properties.

[dydx]

Odd things do happen once in awhile! Notwithstanding posting lower revenue and a loss in its latest FY12 (ended 31Mar12) full-year results.....
http://info.sgx.com/webcoranncatth.nsf/V...D00345CB7/$file/FT_Announcement__March_2012Final.pdf?openelement
Fisher Tech has declared a $0.006/share Final dividend, which should be paid in Aug. Of course, we should bear in mind that the group has continued to churn out decent positive FCF from operations. If fact, based on its latest 31Mar12 B/S, the group is now in a net cash position of approx. $3.8m, which will be boosted by some $5.2m when the previously announced sale of an industrial property is completed - which should be soon.

[dydx]

A very encouraging set of 1H (ended 30Sep12) results (first released 14Nov12) indeed.....
http://info.sgx.com/webcoranncatth.nsf/V...60020AA9E/$file/AnnouncementSep2012Fnl.pdf?openelement

The 1H numbers confirm the recovery of Fischer's plastic parts manufacturing business targetted at prime-name OEMs is intact. In fact, I think the recovery of the business actually started sometime ago and gained strength in last FY12 (ended 31Mar12), but Fischer's P&L for FY12 was marred by the one-off assets write-off - substantially compensated by claiming on existing insurance coverage - caused by the massive Thai floods which happened in late 2011. Undeterred by that, Fischer actually went ahead to renew dividend payment, and paid out a $0.008/share Final dividend for FY12 on 30Aug12.

Bearing in mind Fischer's latest (as at 30Sep12) NAV stands at $0.2863/share, it looks like Mr Market may want to re-rate this counter upwards further.

[dydx]

Is today (26Mar13)'s announcement.....
http://info.sgx.com/webcoranncatth.nsf/V...A0017A4EA/$file/anncppfischerfinal.pdf?openelement
a matter of Fischer Tech cutting back of production capacity in PRC, or streamlining of operations in PRC to save on costs and/or to improve efficiency?

[dydx]

From today's (1Apr13) announcement, it is apparent that the streamlining of Fischer Tech's group operations has been continuing for quite some time.....
http://info.sgx.com/webcoranncatth.nsf/V...000095CB7/$file/Annliqsubsidiaries.pdf?openelement

[dydx]

I am very impressed by the just released FY13 (ended 31Mar13) full-year results.....
http://info.sgx.com/webcoranncatth.nsf/V...A003398FC/$file/FT_Announcement__March_2013.pdf?openelement
Clearly, having revamped its regional network the manufacturing plants, Fisher Tech's precision plastic parts business has staged quite a solid profit turnaround in FY13 and appears now operating on a sound footing. The latest 31Mar13 B/S remained rock-solid and conservative in a net cash position. A higher total $0.009/share in Final + Special dividends (vs. a $0.006/share Final for last FY12) declared.

Would Mr Market be willing to re-rate this grossly under-priced stock (last done at $0.124) towards its justified fair value, which by rationally thinking should be in line with its latest NAV/share of $0.2968. No?

[dydx]

I am actually quite happy to note that since the release of the positive FY13 full-year results on 29May13 including the declaration of a higher $0.009/share in Final + Special dividends (expected to be paid in early Aug13), Fischer Tech's share price has advanced $0.014 (or 11.3%) in the last 2 market days with relatively higher volume, to close at $0.138 on 31May13.

At $0.138, Fischer Tech's coming dividend payment of $0.009/share is fetching a near-term return and dividend yield of 6.5%. The share price is now still at a huge 53.5% discount to the latest (as at 31Mar13) NAV/share of $0.2968, which included a net cash/share of $0.042.

Based on Fischer Tech's FCF generation of approx. $14.1m (after excluding the one-off $3.752m gain on disposal of non-current asset) in FY13 from OP before Working Capital Changes, and before accounting for net capex on PPE and intangible/other assets amounting to $6.567m understandably mostly for capacity expansion, per share FCF was $0.0516 (based on 273.205m issued shares). At the last done share price of $0.138, Mr Market is now attaching a value based on only 2.67x of FY13's FCF/share of $0.0516!

[dydx]

Payment date for the declared total $0.009/share in dividends - comprising a $0.006/share Final and a $0.003/share Special - has been fixed for 30Aug13.....
http://infopub.sgx.com/Apps?A=COW_Corpor...y&F=881356

[dydx]

FY13 (ended 31Mar13) AR just out, and I think it makes excellent reading for those interested in the ever-evolving precision plastic components industry and Fischer Tech's successful story in business right-sizing and returning to normal profitability.....
http://infopub.sgx.com/FileOpen/FTL%20AR...leID=18780

[NTL]

Hi dydx,

Went through quickly over the annual report and past few financial report. From what I can gather, the improved results came from

1. improved utilisation,
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.

From what I can read, the cost looks more or less fixed over the past years, thus the growth in profit will come from increase in revenue.

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

Thank you.