Tai Sin

[Ben]

Was it a BAILOUT ?

I absolutely do not think so. It will be a joke to say Bobby Lim needs a $800K bailout. I do not know his net worth, but I am sure $800K is a peanut to him.

Bobby Lim spent more than 40 years of his life building up Tai Sin, and now has passed on the company to his son, Bernard Lim. If Cast Lab is a problematic company, I would not think so he will agree to let TS buy in. He would rather sell it to an external party at a loss, or write off the amount, then to let TS take over the burden. Agree?

And let's don't be too carried away by the problem in Cast Lab last year. This company has been in business for more than 30 years. It is too early to write off the investment as bad just because of one or two bad years. If you have followed the development of this acquisition, you will know that TS subsequently exercise its PU to increase its shareholding from 52.5% to 65%, for only $3. I believe the problem in Cast Lab is one-off, or temporary. Once this is resolved, Cast Lab could well be a gem to TS, and TS having "bought" the additional 12.5% for just $3 will stand to win big.

So could the problems in Cast Lab turn out to be a blessing in disguise for TS? Let's wait for Q1 announcement for more confirmation on this.

Vested.

[valueinvestor]

To someone who is always on the lookout for share placements with steep discounts from small caps, at the expense of minority shareholders, nothing is peanut to him/her.

[cif5000]

If I hadn't misinterpreted the dialogue in the previous AGM, Bobby was formally introduced to the 3 founders of Cast Lab by Prime Partners. The idea of IPO didn't take off because Cast Lab was too small. At about the same time, an opportunity arose for them to acquire CPG Lab. CPG was bigger than Cast Lab and was only behind the market leader Setsco in soil testing. Cast Lab itself is a certification body and was No. 3 at that time.

Fast forward, the enlarged Cast Lab group had a revenue of $27.8m in the last financial year. Not sure if the acquisition has been fully integrated. When functioning properly, it shouldn't be too different from Setsco's margins.

http://www.cipgi.com.sg/
http://www.cast.com.sg/

[NTL]

Just consider the acqusition is for transferring the ownership from father to son then.

Just wondering, if Cast-lab is profitable at the point of acquisition, why is the net profit actually drop?

Extracts from the acquisition announcement:

"The Cast Lab Group has been profitable for the past five financial years ended 31 December for 2006 to 2010."

"Before the Acquisition, net profit after tax: $10.509M,
After the Acquisition, net profit after tax: $10.322M"

[NTL]

Taisin has announced their 1Q result.

Profit up 34%, EPS of 1.44c for the quarter.

[Zip113]

0.35 now !

[Nick]

We initiate coverage on Tai Sin Electric with a BUY recommendation and target price
of S$0.435. Despite being in a highly competitive industry, Tai Sin has emerged as a
market leader that has consistently outperformed its peers. Profitable for the last 10
years, Tai Sin has an excellent growth record with net profit growing strongly at a
CAGR of 26.7% in FY02-FY13. DPS also grew at a CAGR of 14.7% over the same
period. Given its attractive dividend yield (6.7%), solid balance sheet and consistent
earnings track record, we believe Tai Sin offers good value at a fair price. [UOB Kay Hian]

https://groups.google.com/forum/#!topic/...oPzLNUIYZg [Report can be downloaded here]

(Not Vested)

[valuebuddies]

Finally Q2 accounts is out: http://infopub.sgx.com/FileOpen/Q2_ANNOU...eID=274283

Stable, no surprise, maintained interim div of 0.75c

tiny lot vested

[BlueKelah]

looks like undervalued on the surface but large part of assets are in receivables. Not much net cash either.

[wahkao]

looks like undervalued on the surface but large part of assets are in receivables. Not much net cash either.

TTM DSO of 99.39 days is pretty common and all right for this industry