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Chasen Holdings
03-04-2019, 12:34 PM.
Post: #11
RE: Chasen Holdings
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.

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05-04-2019, 09:02 PM.
Post: #12
RE: Chasen Holdings
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?

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30-05-2019, 07:01 PM.
Post: #13
RE: Chasen Holdings
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
=========== Signature ===========
Specuvestor: Asset - Business - Structure.

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31-05-2019, 01:22 AM. (This post was last modified: 31-05-2019, 09:23 AM by sillyivan.)
Post: #14
RE: Chasen Holdings
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.

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11-06-2019, 07:33 PM.
Post: #15
RE: Chasen Holdings
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
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Specuvestor: Asset - Business - Structure.

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