Tai Sin

[oinkoink1999]

Copper price had been held steady between US$3.00 and US$3.20 over Jun/Jul period and recently climbing above US$3.30 in August.

Will we be able to see good results from Taisin in their Q4 and next Q1 reporting?

Copper price is weak for most of the time from Apr to Jun. I would think that its Q4 result will not be exciting, maybe similar to its Q3 performance. Still, because of a very good 1H performance, it is likely that TS will declare a final dividends similar to last year.

The price has run up quite a lot and is now trading close to its NAV. I have sold a portion of my shares at $0.30 and invest in another counter which seems to offer better upside.

Hi Ben,
which counter r u vested on? care to share? Yes, im still holding on to it but current value is very near NAV now. Thinking of loading up more on OUE.

Cheers,

oinkoink

[Ben]

Hi Ben,
which counter r u vested on? care to share? Yes, im still holding on to it but current value is very near NAV now. Thinking of loading up more on OUE.

Cheers,

oinkoink

Hi oinkoink, if you look at my posts you will know which counters I am invested in. I look forward to discussion on the merits or demerits of investing in these counters. Let's learn from each other.

[NTL]

Copper price had been held steady between US$3.00 and US$3.20 over Jun/Jul period and recently climbing above US$3.30 in August.

Will we be able to see good results from Taisin in their Q4 and next Q1 reporting?

Copper price is weak for most of the time from Apr to Jun. I would think that its Q4 result will not be exciting, maybe similar to its Q3 performance. Still, because of a very good 1H performance, it is likely that TS will declare a final dividends similar to last year.

The price has run up quite a lot and is now trading close to its NAV. I have sold a portion of my shares at $0.30 and invest in another counter which seems to offer better upside.

Results out.

Q4 Revenue: $86M
Q4 Gross Profit: $17M
Q4 Net Profit: $6.2M

Much much better than Q3!

Final Dividend: 1.5c, total for the year: 2.25c or 7.5%.

Not bad!

[Ben]

Yes, Q4 results is good, much better than Q3 and also my expectation. FY revenue exceeded $300M for the first time. Need to spend more time to analyse the details.

IMO, the prospect for TS is good. Its performance will be well supported by the robust construction industry as well as the many infrastructure projects that are on planned, both in Singapore as well as the region.

[NTL]

Their margin is not very exciting though. Likely due to the drop in copper price during the period. With copper stable over this period, hopefully can see a good Q1.

More interesting in today announcement is the management willingness to give up their rights to additional shares in Cast Lab in exchange (hopefully) for a better alignment of the management of both companies. Wonder how this will work out.

[Drizzt]

the earnings look good for the last 2 years 18-19 mil. they need 10 mil to pay a 7.5% dividend currently and that looks good. but the free cash flow looks around 11-13 mil for the last 2 years.

major profit contribution is from Cable and wire (19mil) and Elec Material Dist (3-4mil). it is disappointing that Test and Inspection is negative!

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one other thing is that for a company with low long term debt their interst paid is in the 1 mil range. is that the doing of the huge bank short term borrowings?

[NTL]

Looking at the cashflow statement, they borrow and repay around the same amount. Very likely the unsecured short term loans are use for financing their purchase of goods, and they may be required to do so as part of the operation. From what I now, many trading companies are doing that.

[Ben]

one other thing is that for a company with low long term debt their interst paid is in the 1 mil range. is that the doing of the huge bank short term borrowings?

The debts you see on their BS are mainly trust receipt that the company use to finance their inventory purchase. This is similar to a short term financing which naturally comes with higher interest charges. The company has been using this financing model for a long time, I guess they must be some merits in it.

[NTL]

Haha, you know the actual term. I only know they exist. BRC also has a big chunk of it.

[Drizzt]

hi ben, thanks for the education. from the looks of it, our collective knowledge of taht sort of short term financing looks rather low.