Yeo Hiap Seng

[zerobeta]

since they no longer have their property division (all fully sold as of Dec 2013) do you think their share price should adjust downward further to bring PE ratio to a more sensible level? As a note, in 1H2014, their net profits dropped 58% from last year mainly because no contribution from property segment.

Also do you think this company can be a good acquisition target (say from Thai Bev or CP Group) since they have very strong household name and most importantly, good distribution network? At 800 mln market cap, it aint that expensive for such a company exposed to emerging Southeast Asia

[beau]

Does YHS classify under the Fast Moving Consumer Goods industry?

[cyclone]

Singapore, 18 March 2016… Yeo Hiap Seng Limited ("YHS"), the leading home-grown beverage and food company, announced today that it has entered into a joint venture with China Huiyuan Juice Group Limited to develop, manufacture, sell and distribute beverage products consisting predominantly fruit and vegetable juices, targeting the Malaysian market initially and expanding possibly into other Southeast Asia markets subsequently.

"The joint venture is an excellent opportunity for both YHS Group and China Huiyuan to leverage on each other's strengths and collaborate to expand our presence in the juice category in Malaysia and possibly other SEA markets in the future." says Mr Melvin Teo, Group CEO of YHS
"YHS will undertake the product development, marketing, distribution and production management roles while China Huiyuan will take the lead in terms of technical knowhow and research & development"

"YHS also intends to strengthen its business cooperation with China Huiyuan in China, which includes the opportunity to access China Huiyuan's extensive distribution network in China for our drinks." added Mr Teo.

YHS and China Huiyuan will jointly establish a joint venture entity in Malaysia with an initial investment of RM5 million. The parties will hold equal equity interest in the joint venture entity.

About China Huiyuan
China Huiyuan is a leading vertically-integrated fruit and vegetable juice producer in China, which is principally engaged in the production and sales of concentrated juice, puree, fruit juice, fruit and vegetable juice, beverage, water and other drinks. It is the largest 100% juice producer in China, and listed on the Hong Kong Stock Exchange since 2007. It has over 140 business entities and production facilities and has dominated the China juice market for decades, with strong growing presence in the international markets in recent years

http://infopub.sgx.com/FileOpen/YHS%20pa...eID=394459

[butcher]

Was reading YHS FY15 announcement made on 22/2/16. Realised at the announcement date, the auditors already completed all work and gave an opinion already. That's pretty fast in my opinion.


http://infopub.sgx.com/Apps?A=COW_CorpAn...FY2015.pdf

[karlmarx]

YHS released its latest quarterly:

http://infopub.sgx.com/FileOpen/YHS-1704...eID=450365

Removing the gain from the sale of its shares in Super Group, net profit for fell from $5.4m from Q1FY16 to $2.5m in Q1FY17.

Since July 2016, it had also lost its exclusive bottling agreement with Pepsi; something that was instrumental in building YHS into the beverage manufacturer it is, many decades ago.

http://infopub.sgx.com/FileOpen/YHS-1606...eID=410872

Looking at its product line-up, I am not confident that there will be any reversal in its fortunes. The soya sauces, canned curries and chrysanthemum teas which built the company has lost its appeal to consumers. I can't even find its soya sauce -- the first product which began their empire -- on NTUC shelves. Its latest Annual Report show a drastic shrinking of sales in its Singapore market from $290m to $169m over the past 5 years.

At a market cap of $800m against a clean balance sheet of $675m equity, of a business that is clearly deteriorating/mismanaged, I am not sure why there should be any premium to its equity.

[karlmarx]

Without the $6.5m gain on disposal of a subsidiary, YHS would have made a $1m loss this quarter.

http://infopub.sgx.com/FileOpen/YHSL-170...eID=465687

[Scg8866t]

WHy is YHS still trading at premium to book? They do not have any desired assets left and they dont payout their cash hoarde. Their beverage business is also dying. Makes me wonder what FEO plans to do with it.

[¯|_(ツ)_/¯]

16 July 2020 Losses for 1H2020 as at 30 Jun 2020 YHS
https://links.sgx.com/FileOpen/YHSL-2020...eID=623961

Following a preliminary review of unaudited financial results of the Group for the period 1 January through 30 June 2020 (“1H 2020”), YHS wishes to advise shareholders that for 1H 2020, the Group expects to report a net loss due to the impact of the COVID-19 pandemic. Compared to the same period last year, the expected net loss for the 1H 2020 will be a significant decline due to the impact of the COVID-19 pandemic as well as the absence of one-off gains on asset disposals and fair value gains on financial assets which were recorded in the same period last year.
The COVID-19 pandemic has and is expected to continue to adversely impact the Group’s revenue and profit due to softness in consumer spending, disruptions to operations and sales channels as well as higher operating costs. 

Wear mask and keep your social distance, everyone.

[weijian]

Looking at Far East Org's website, they have 4 listed entities - FEO, FEHT, YHS and SinoLand. Besides FEHT (Far East Hospitality Trust), the rest of the 3 provides scrip option for the dividend and Far East Org takes it. Does this infer that its unlisted entities are providing enough cash for Far East Org's operational needs?

Probably 2 things can be concluded - (1) Far East Org doesn't need the cash. (2) Great to use unneeded cash to buy cheap via scrip dividend...None of these are good news for OPMIs.

MINUTES OF THE SIXTY-EIGHTH ANNUAL GENERAL MEETING OF THE COMPANY

Could the Director, Mr. Jonathan Ng share some insights on why the controlling shareholder is interested to elect for scrip dividend instead of cash dividend? What’s the intention of the controlling shareholder in making such a decision?

Mr. Jonathan Ng responded, that controlling shareholder opted for scrip dividends as they are confident with the Company's growth potential and wanted to provide the Company with more resources for future investments and developments, whether in organic or non-organic ventures. Additionally, he highlighted that by taking scrip dividends, it allowed the Company to maintain a healthier balance sheet, which is essential for long-term growth.

The Chairman further clarified that regardless of whether Shareholders choose cash or scrip dividends, the total dividend payout remains the same. The choice between cash and scrip dividends simply offers Shareholders flexibility in how they wish to receive their dividends.

https://links.sgx.com/FileOpen/YHSL_AGM%...eID=804483

[ghchua]

Hi weijian,

Both FEO and YHS can't do scrip dividend indefinitely, without the support of minority shareholders even if the controlling shareholder took it up. This is because it will result in free float getting lower as years gone by, resulting in the risk of it getting below 10% and not been able to meet SGX listing requirements.

At some point, I think this has to stop. I cannot speak for the controlling shareholder, but what I can see is that the free float of the two listed entities had been lower as years gone by after they had implemented the scheme. Which means, most minorities had not been taking it up for one reason or another.