Chasen Holdings

[sillyivan]

Chasen Holdings announced that its 9M FY2019 net profit hits highest record in 7 years.

9M FY2019 net profit of 4.075M is a 34% increase compared to 9M FY2018's 3.052M.
9M earnings per share is also up 31%.

Full year FY2019 should be out soon. Today share price jumped 6% from 0.78 to 0.83 with high volume.

Currently trading at trailing PE ratio of 4.6-5.6x and PB ratio of ~0.43 I believe the stock is undervalued.

Chasen holdings has 3 operating segments. 
1. Specialist relocation services
2. Third party logistics
3. Technical&Engineering services

It's largest is its specialist relocation services that contribute bulk of its revenue. I believe it has room to grow due to the current rapidly expanding e-commerce industry. Management consider themselves to have a competitive moat over its competitors in which it can provide complementary T&E expertise whilst its competitors dont.

Chasen's 3QFY19 (ending Dec 2018) was its 11th straight quarter of net profit, forming a good story of a turnaround company. They have also paid dividends to shareholders every year since FY2007. This year, they have announced an interim dividend of 0.1cent/share (their first in at least 10 years) to reward shareholders, showing confidence in their profitability.

Operating cashflow has also always maintained at healthy levels with positive net operating cashflow of $8.9 million for 9MFY19. Dividend payout is therefore sustainable.

“Demand for Chasen’s relocation services is still healthy despite China’s economic slowdown and the ongoing Sino-US trade dispute, as the production output from several move-in projects handled by our China subsidiary is mainly for the Chinese domestic market.” -Low Weng Fatt,  MD and CEO, Chasen Holdings

Also on Chasen' s plans are potential spin-offs of its subsidiaries, which it believes will be able to unlock their value, as the sum of its parts is currently worth more than the whole.

[sillyivan]

10 million shares changed hands in today’s market. That amounts to around $900K. Big volume right before end of year results are out. What’s brewing?

[cyclone]

Financial Results for the Year Ended 31 March 2019 ("FY2019")

Highlights :
1. For FY2019, revenue came in at S$131.9 million, 3% higher than S$127.6 million a year earlier
2. Specialist Relocation contributing S$78.0 million (FY2018: S$75.1 million), or 59% of total sales
3. Specialist Relocation services in China lead growth in revenue
4. Group's gross profit margin remains healthy at 24.4%
5. Record full-year gross profit of S$32.1 million for FY2019 (FY2018 : S$29.2 million)
6. Net profit attributable to shareholders dropped 7% to S$5.37 million (FY2018: S$5.79 million)
7. Fully diluted earnings per shares dropped 11% to S$1.39 cents  (FY2018: S$ 1.56 cents)
8. Cash and cash equivalents of S$12.1 million
9. Proposes final dividend of S$0.003 per share for FY2019.

More details in :
1. https://links.sgx.com/FileOpen/Chasen%20...eID=561757
2. https://links.sgx.com/FileOpen/Chasen%20...eID=561758

[sillyivan]

Thanks for the update Cyclone!

SGX Mainboard-listed Chasen Holdings Limited (“Chasen” or the “Group”) announced today that it recorded a full-year gross profit of S$32.1 million for the
financial year ended 31 March 2019 (“FY2019”), its highest ever, on the back of record revenue propelled by demand for its Specialist Relocation services in China.

Gross profit margin increased to 24.4% while net profit dipped 7% attributable to higher provision of deferred tax this year and the reversal of overprovision of income tax in last year’s corresponding periods.

$0.003/share dividends at $0.091 current share price translates to 3.3% yield. 
(Edit: including interim dividend total $0.004/share = 4.4% yield)
PE still in value range as company continues its turnaround story with record high revenues whilst paying sizable dividends at the same time.

This year might see another record year as companies seek to relocate their manufacturing plants out of China into neighboring countries such as Vietnam due to increasing costs in China and also trade war. Chasen should be well poised to benefit from such movements considering they have presence in Vietnam, China, Thailand, Malaysia and more. Chasen has strengthened its first-mover advantage by starting loose cargo movement across national
boundaries facilitated by its 3PL site operations in Vietnam and China, adding to its current network in Malaysia and Thailand.

[cyclone]

CHASEN HOLDINGS: Progressing towards spin-off of 2 subsidiaries

Written by Leong Chan Teik
Published: 11 June 2019

In a July 2018 corporate and business update filed on the SGX website, Chasen Holdings said it was exploring "potential spinoffs and other capital market actions to enhance value to its shareholders".

Shortly after that, The Edge Singapore quoted non-executive chairman Eric Ng saying at a results briefing: “Right now, if you add up the value of all the subsidiaries, they far exceed the value of the parent company.

"So, the only thing to do is to let the subsidi­aries go to realise the full value of the Group.”

At last week's FY19 results briefing, Mr Ng indicated that progress has been made towards a spin-off of, possibly, its Chinese subsidiary and  Malaysian subsidiary.

It is in the process of appointing listing professionals, including investment bankers.

On the attractive fundamentals of the Chinese subsidiary for a listing, he pointed out that it has been in operation for some 15 years, carrying out a very niche business.

This chiefly involves overseas OEM equipment move-in for newly established manufacturing facilities in the China coastal regions as well as inland provinces, and from China to Southeast Asia.

Chasen, which considers that it has only two competitors in China, targets customers who are flat-panel display manufacturers and semi-conductor manufacturers, among others.

Its China relocation business grossed RMB180 million in FY19.

As for the Malaysian subsidary, which is profitable, he noted that it has achieved revenue of between RM30 million and RM40 million a year -- sufficient for a spinoff.

The Malaysian subsidiary carries out third-party logistics across land borders in both directions. It is unusual in that its trucks, instead of being domestic-focused, traverse multiple countries -- Singapore, Malaysia, Thailand, Vietnam and China.

If and when the spinoffs materialise, the unlocking of value potentially could help Chasen achieve the criteria to exit the SGX watchlist (MTP) by the June 2020 deadline set by SGX.

The SGX criteria to exit the MTP Watchlist are, simply put, a market capitalisation of at least S$40 million (currently S$34 million) and a stock price of 20 cents (currently 8.8 cents).

Asked if there is a fallback plan if the spinoffs are not achieved for whatever reason, CEO Justin Low said Chasen has until the end of 2019 to consider moving its Singapore listing to Catalist from mainboard.

More details in https://nextinsight.net/story-archive-ma...bsidiaries

[cyclone]

Chasen Secures Projects Worth Over S$20 Million for Specialist Relocation and Third Party Logistics Business Segments for FY2020 and Beyond

Chasen Holdings Limited said today its subsidiaries in Specialist Relocation and Third Party Logistics (“3PL”) have secured contracts amounting to approximately S$22.4 million in the financial year ending 31 March 2020 (“FY2020”).

For the Specialist Relocation business segment, Chasen Hi-Tech Machinery Services Pte Ltd, which is based in Chuzhou, PRC will provide move-in and warehousing related logistics services for an 8.6th Generation thin-film transistor liquid crystal display (“TFT LCD”) manufacturing plant in Mianyang, Sichuan Province, People’s Republic of China. The project worth approximately S$10 million will run from October 2019 to September 2020.

Penang-based Chasen Logistics Sdn Bhd also secured the renewal of a relocation contract with a German MNC located in the Kulim Hi-Tech Park in Kedah, Peninsular Malaysia for a period of three years from June 2019 to May 2022 valued at S$1.3 million.

In Singapore, Chasen’s subsidiary, Liten Logistics Services Pte Ltd secured a warehousing and distribution contract worth approximately S$3.8 million that runs from July 2019 to July 2021.

Chasen’s other Penang-based 3PL subsidiary, City Zone Express Sdn Bhd is currently performing a contract worth approximately S$3.2 million to provide cross border services from Malaysia to Vietnam and China to Singapore, which begun in January 2019 and will run till January 2021. There is a second contract, for the period of July 2019 to July 2021, worth approximately S$2.5 million in the first year and S$1.6 million in the second year whereby Chasen is providing cross border services from Singapore to Thailand and Malaysia to Singapore.

The projects will be funded through bank borrowings and internal financial resources.

More details in :
1. https://links.sgx.com/FileOpen/Chasen_An...eID=575924
2. https://links.sgx.com/FileOpen/Chasen_Pr...eID=575925

[cyclone]

SGX-Listed Chasen Secures S$8.2 Million Worth of New Logistics Projects

Singapore, 9 December 2020 – SGX Mainboard-listed Chasen Holdings Limited said today it has secured S$8.2 million worth of fresh projects in China and Southeast Asia, underscoring recovery of its logistics businesses from the COVID-19 pandemic.

Chasen’s secured two Specialist Relocation projects in Greater China for the electronic sector, which has witnessed a pick-up in orders. The first is a RMB5 million (S$1 million) relocation project for a 6th Generation OLED module panel assembly factory in Guangzhou, Guangdong Province; the second is to manage the factory relocation of a US-owned Taiwan-based semi-conductor customer, worth S$0.6 million.

Both projects are scheduled for completion by March 2021, and were secured by Chasen’s PRC-based subsidiary Chasen (Chuzhou) Hi-Tech Machinery Services Pte Ltd and home-based Chasen Logistics Services Limited respectively. Revenue recognition for the PRC project commenced in 2HFY2021, while revenue from the Taiwan project, which will commence in the second half of February 2021, will be recognised in FY2021.

For the Third Party Logistics (“3PL”) segment, Chasen’s Malaysian subsidiary secured three significant contracts worth RM20 million (S$6.6 million) to deliver electronic and semi-conductor parts for two US MNCs with manufacturing plants spanning Singapore, Malaysia and the PRC.

These one-year tenure contracts secured by Penang-based City Zone Express Sdn Bhd underscore the growing demand for cross-border land freight amid higher costs and restricted capacity for sea and air freight due to disruptions caused by COVID-19. Cross-border operations have commenced for the first two contracts while the third contract will commence in Q4FY2021.

These projects build on the momentum of business recovery that began when Chasen announced S$21 million of new contracts at end July 2020. The latest contracts, which have lifted fresh orders (since FY2020) to S$29.2 million, further accentuate the green shoots of recovery amid the pandemic challenges even as Chasen continues to lower its cost structure to expand margins.

More details in https://links.sgx.com/1.0.0/corporate-an...cement.pdf