Tai Sin

[Ben]

If the stock still trades below NTA after FY12 result announcement, the owner should just privatize it, following what many other already did.

I hope not. I still want to hold on to this company for long time and enjoy the yearly dividends

[paullow]

If the stock still trades below NTA after FY12 result announcement, the owner should just privatize it, following what many other already did.

I hope not. I still want to hold on to this company for long time and enjoy the yearly dividends

seems people are noticing this undervalued counter and price up and volumes are in million ranges these few days. or is it punters at play?

[Ben]

Have another small bite today at 0.245, in anticipation of good result which should be announcing soon. Even at 0.245, it is trading at less than 6X earning, below NTA of about 28c, and possible yield of more than 8%.

[ValueBeliever]

Historically, this is the trend. May be 5yrs back after the bonus, it started to get hit buy copper price and margin got squeezed hard. Now its the reverse, too many job and Bobby Lim is probably expanding into lots of area other than selling cable.

Before we got SMB taken private. Guess if there are more floods and natural disaster, we will see more cable getting renewed. The current infrastructure increase will increase Tai Sin revenue.

Let see after 5yrs and having its compressed earnings with expanded share size, will we get a expansion in EPS and leading to increase PE ratio.

It use to trade at PE 10 normal. But what to do these days, avg for the whole market is 12 (probably due to our index heavy Bank and property) the EPS is not moving, PE gets hammered down.

This is the job of SIAS and our market analyst - but since we had these S chip overhang, all our analyst shy away from our own domestic stock. They still prefer S chip with a big revenue and cash that belongs to Shldrs showing up as Co. cash, which in the 1st place they should not be in such a high risk place.

Warren -> look at the mgmt?

Yet our SGX and idiotic regulators, just kept looking at the lunatic deals these foreign cheats bring. It goes to show what kind of Country and who runs it - total failure! We import all these listing using our money and at the end neglected all our local Co. Worse still, people lose faith in the system and never to return - not just retailers, even good quality listed Co. are running away.

SGX ONLY GOT IT SELF TO BLAME!!

[godjira1]

Dear valueinvestor,

I guess its a question of perspective. The s-chip debacle is both a boon and a bane to the value seeker. I think there are now sufficient lowly priced stocks listed in singapore with superficial coverage or dragged down by general apathy towards small caps/illiquid caps.

And the situation will not last forever (the fraudulent stock will delist eventually, the flight to safety in terms of yield seek and big caps will end) so i for one see this as positive time to increase holdings.

[CityFarmer]

Dear valueinvestor,

I guess its a question of perspective. The s-chip debacle is both a boon and a bane to the value seeker. I think there are now sufficient lowly priced stocks listed in singapore with superficial coverage or dragged down by general apathy towards small caps/illiquid caps.

And the situation will not last forever (the fraudulent stock will delist eventually, the flight to safety in terms of yield seek and big caps will end) so i for one see this as positive time to increase holdings.

IMO, the time to pick up S-Chip is depend on the moment i am running out of comparable non-S-Chip stocks.

If i can find comparable under-value non-S-chip stocks, there is no reason to invest on S-Chip. Ultimately due to nature of setup, S-Chip is bearing higher risk than non-S-Chip. I am able to find comparable non-S-Chip now.

But if the good S-Chip's price fall into an attractive level to justify the risk, then it is the other story

[ValueBeliever]

Buy Reits is a sin. All our manufacturer if they dont have a premise of their own will 1 day be pushed out by the high cost of rental. Reits is a bad idea for starting out SME. The way things are going - 1 of these days nobody will start new business and Reits yield will collapse with so many new industrial properties coming up. But our smart gov has started a patch work measure of reducing lease to 30yrs - sustaining the bubble.

Preferred choice would thus be buying Co. that has industrial property+competitive strength, so that they will be able to pay equally strong dividend.

For 1.5cts, Tai Sin yield will sustain there hopefully, by then it can improve on its profitability. PE of about 5.4. Sad!

[Ben]

As expected, FY12 was a record year for Tai Sin, with sales of $279M, surpassing the previous high of $257M set in 2008. Even more encouraging was the fact that Q4 sales hit a new record of $78.7M, 18.5% increase y-o-y and 14% more than Q3. Full year GM% of 18.3% was also much better than last FY, meaning no deterioration in ASP amid the volatile copper prices.

FY12 EPS improved to 4.47, and NTA increased to 28.55c. Final dividends of 1.5c was declared, bringing full year DPS to 2.1c, or a payout ratio of 47%. Current yield is 8.7%. Tai Sin has decided not to issue script dividends this time round, which means they need to folk out about $6.2M cash. I am sure the company is confident about their ability to generate cash moving forward.

Despite an increase in business volume, inventory has been stable throughout the year, hovering at about $63M, and lower than $66M as of end of last FY. This is a great relief to me as the value of inventory can fluctuate widely according to copper price. $63M inventory can probably last them one quarter.

I do have a bit of concern on the high YE AR, at $85M. They did write off small amount of AR as bad debts this year.

It is also worthy to note the comment made by the company:

“Modest growth is expected from expansion in the transport engineering and construction sectors. This will benefit the Group’s cable and wire segment.”

I believe with the many public and private projects going on in the next few years, Tai Sin performance should be satisfactory in the near future.

[paullow]

i hope so. its one of those old companies, from 2nd generation handing over to 3rd generation. i also remain vested like u. i bought in at average price of 18c. u bought a lot, ben?

[ValueBeliever]

More cable demand coming.....may be Gov wants some back up in case things go terribly wrong. Anyway more floods damage, more electrical works to replace cable and cable related fittings... more business for Tai Sin...


Singapore Power said on Thursday that it has entered into a S$1.59 billion loan facility with six banks to fund its underground cable tunnel project announced on Sept 17.

The bank loans will finance part of the project costs, said SP.

The banks are: DBS Bank, Mizuho Corporate Bank, Oversea-Chinese Banking Corporation, Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, and United Overseas Bank. DBS acted as its financial advisor.

"Proceeds from the loan facility will be used to finance the development, construction and operation of the two cross-island cable tunnels," said SP.