Tai Sin

[csccc]

I think the prospect is also quite good given the ramped up supply of housing and all the MRT lines construction..

[paullow]

yes, i see it as an excellent stock which complements the s'pore economic situation. ppty prices is being closely watch n any run ups, garmen will hammer it down. but the building cotinues. i see taisin's price rising in the near future. the latest eps will be a compass to this.

[ngcheeki]

1H FY2013 result is out and the following is a short summary.

Revenue(S$'000): $150,243
Net Profit('000): $11,380.00
EPS: $0.0261
NAV: $0.2935
Dividend: 0.75 cents increased from 1HFY2012 of 0.6 cent
Price to book price 0.29: 0.988X

Forward Statement:
The external environment remains challenging for the cable & wire segment as well as the electrical
material distribution segment. The Group will continue to adopt its focus on the domestic market and
existing regional business territories.

The prospects for the electrical material distribution segment will depend a great deal on the economic
growth in Singapore. Given continued weakness in the economy especially in the electronics sector, this
segment will strive to forge new relationships and reinforce existing partnerships with customers and
suppliers to strengthen its business.

http://info.sgx.com/webcoranncatth.nsf/V...800352677/$file/Q2_ANNOUNCE_DecFY2013.pdf?openelement

Vested

[pianist]

This seems likely deeply undervalued counter. But I am not sure of its track record in dividend paout though.

[paullow]

imo, taisin is like 2005-2006. it will explode exponentially once consstruction of new homes n infrastructure heats up. 1/4earning this yr already represent 60% or so of whole last yr. thats y interim div increased 25% also. u can guess their volume of biz...

[orang]

Wow! Impressive set of results
Top line revs up 14%
Bottom line accelerates 46%
Obviously a firmer gross margin of 20% is the driver
But what drives the margins?

[Ben]

Forward Statement:
The external environment remains challenging for the cable & wire segment as well as the electrical
material distribution segment. The Group will continue to adopt its focus on the domestic market and
existing regional business territories.

The prospects for the electrical material distribution segment will depend a great deal on the economic
growth in Singapore. Given continued weakness in the economy especially in the electronics sector, this
segment will strive to forge new relationships and reinforce existing partnerships with customers and
suppliers to strengthen its business.

This is a truly reflection of the conservative (and to me a little KS) management style of Tai Sin . If you look at the outlook comments for the pasts’ quarterly results announcement, the company always issued a somewhat somber outlook. To truly assess the performance of this company, you need delve into the details and let the numbers do the talking. Let’s see what the latest quarter numbers is trying to tell us:

1. Sales $78.7 million. Record quarter sales for the past three years, marginally surpassing the previous record set only in Q4’12. Increase mainly coming from its newly acquired Test & Inspection business, while it’s C&W and EMD business also show improvement. Traditionally, 2H of the year performs better than 1H, so expect this year sales to be a record year.

2. Gross margin % of 21.1% in Q2’13. Again, this is an above average margin for the company and it is a huge plus. This only means that the company is able to grow business volume AND maintaining, or even improving selling price. Not much details from the result announcement so we cannot pinpoint precisely where the improvement in margin is coming from, but we can deduce two things:

a. The margin from Test and Inspection is positive and improving. Based on segment result for FY12, this segment only contributed 0.8% GM (Sales $12.9M and profit $108K). Since the company is able to improve its margin in 1H of this year, and with increased sales mainly coming from this segment, it is reasonable to assume that the margin for this segment has improved quite significantly.

b. The margin for C&W and EMD must have been better than before to improve its overall margin. I don’t track copper price frequently but I think it is stable and trending upwards. That is good news to the company.

3. What surprises me is the profit from associate of $346K in Q2’13. The profit from associate has been declining since Q3’12, turning into a loss in Q4’12 and barely breakeven in Q1’13. A profit of $346K this quarter, though no big number, is a pleasant surprise.

4. Increase interim dividends by 25%, from 0.6c to 0.75c. Is the company trying to tell us in a subtle way that the prospect of the company is bright and so can issue higher dividends? If assuming FY dividends improve by 25% as well, than based on today’s price of 29c, its yield is a whopping 9%! Payout ratio is likely to be below 50% even if they increase dividend by 25%, so I reckon this is highly possible.

With the large infrastructure and housing development that are in the pipeline, I personally think that the future for this company is bright. Many people think that C&W business is a sunset industry, and the products are not glamorous. This is probably why no analyst has covered this company, and that to me is good news, else how can we buy cheap?

I think the best has yet to come for this company. My 2c worth.

Vested

[paullow]

ben, my sentiments exactly.
looks like this counter charging up....

[paullow]

Forward Statement:
The external environment remains challenging for the cable & wire segment as well as the electrical
material distribution segment. The Group will continue to adopt its focus on the domestic market and
existing regional business territories.

The prospects for the electrical material distribution segment will depend a great deal on the economic
growth in Singapore. Given continued weakness in the economy especially in the electronics sector, this
segment will strive to forge new relationships and reinforce existing partnerships with customers and
suppliers to strengthen its business.

This is a truly reflection of the conservative (and to me a little KS) management style of Tai Sin . If you look at the outlook comments for the pasts’ quarterly results announcement, the company always issued a somewhat somber outlook. To truly assess the performance of this company, you need delve into the details and let the numbers do the talking. Let’s see what the latest quarter numbers is trying to tell us:

1. Sales $78.7 million. Record quarter sales for the past three years, marginally surpassing the previous record set only in Q4’12. Increase mainly coming from its newly acquired Test & Inspection business, while it’s C&W and EMD business also show improvement. Traditionally, 2H of the year performs better than 1H, so expect this year sales to be a record year.

2. Gross margin % of 21.1% in Q2’13. Again, this is an above average margin for the company and it is a huge plus. This only means that the company is able to grow business volume AND maintaining, or even improving selling price. Not much details from the result announcement so we cannot pinpoint precisely where the improvement in margin is coming from, but we can deduce two things:

a. The margin from Test and Inspection is positive and improving. Based on segment result for FY12, this segment only contributed 0.8% GM (Sales $12.9M and profit $108K). Since the company is able to improve its margin in 1H of this year, and with increased sales mainly coming from this segment, it is reasonable to assume that the margin for this segment has improved quite significantly.

b. The margin for C&W and EMD must have been better than before to improve its overall margin. I don’t track copper price frequently but I think it is stable and trending upwards. That is good news to the company.

3. What surprises me is the profit from associate of $346K in Q2’13. The profit from associate has been declining since Q3’12, turning into a loss in Q4’12 and barely breakeven in Q1’13. A profit of $346K this quarter, though no big number, is a pleasant surprise.

4. Increase interim dividends by 25%, from 0.6c to 0.75c. Is the company trying to tell us in a subtle way that the prospect of the company is bright and so can issue higher dividends? If assuming FY dividends improve by 25% as well, than based on today’s price of 29c, its yield is a whopping 9%! Payout ratio is likely to be below 50% even if they increase dividend by 25%, so I reckon this is highly possible.

With the large infrastructure and housing development that are in the pipeline, I personally think that the future for this company is bright. Many people think that C&W business is a sunset industry, and the products are not glamorous. This is probably why no analyst has covered this company, and that to me is good news, else how can we buy cheap?

I think the best has yet to come for this company. My 2c worth.

Vested

i did some back of envelop calculations and extrapolations. if this quarter's eps is sustained for the next 3quarters, then whole yr earnings would be a whopping 10c. and at this current price of 29.5c, pe will just be 3!
thus tremendous upside may be on the way for the next 12months or so....

[Bibi]

i did some back of envelop calculations and extrapolations. if this quarter's eps is sustained for the next 3quarters, then whole yr earnings would be a whopping 10c. and at this current price of 29.5c, pe will just be 3!
thus tremendous upside may be on the way for the next 12months or so....

Err, why next 3 quarters ha? I thought Q1 earnings was $4.67, Q2 was 6.84. So first half was $11.51.

PE of 3 with number of shares 435.5mil means earnings of $43mil. You expect second half earnings of $31.5mil? May i ask why the optimism?