Nam Lee Pressed Metal

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Nam Lee shareholders should take that the Final and Special dividends for FY10 totalling $0.015/share will be paid on 4Mar10.....

Book closure has been fixed for 21Feb11, which means the Ex-D Date will likely be 17Feb11 (next Thursday).

In a seperate announcement today (11Feb11), Nam Lee also posted a set of decent Q1 (ended 31Dec10)-FY11 results, including steady profitability and a solid B/S......$file/NamLee_Q1_Results2011.pdf?openelement
improved gross profit margin after deducting recovery of foreign loss from customer.

seems aluminum industrial product offers better profit margin than building product.
Today (16Feb11), S&P has issued a positive update report on Nam Lee based on the Q1-FY11 results released recently.....

After reviewing S&P's forecasts, I feel their PBT and NP numbers for FY11 and FY12 are on the conservative side, and would very likely be surpassed. In the short-to-medium term, Nam Lee's business will be well supported by HDB's plan to build some 22,000 flats in 2011 and renewed orders for aluminium shipping container parts from Carrier Transicold.
Just checked my bank account and noted a nice credit on 4Mar11 from Nam Lee's Final and Special dividends for FY10 totalling $0.015/share. Feeling great!

Controlling shareholder the Yong Brothers, through their private holding company Nam Lee Holdings P/L, has not stopped buying more Nam Lee shares from the open-market. They were prepared to pay as high as $0.30/share (on 6Jan11) before Nam Lee went "XD" on 17Feb11, and continued to buy afterwards and have guided a recovery of the share price since 25Feb11. Their last purchase on 2Mar11 was for 50 lots at $0.285/share.....
The just released Q2/H1 (ended 31Mar11)-FY11 results look good and makes interesting reading.....$file/NamLee_HalfYr_31Mar2011.pdf?openelement

It looks like Nam Lee is poised to do better in FY11, than FY10 in which the group recorded a revenue of $139.0m and a NP of $9.9m.
Today (6May11), S&P issued an update report on Nam Lee.....

My own view remains that Nam Lee will likely deliver better results in FY11 and FY12 than S&P's forecasts. For one, S&P may have missed the potential earnings from Nam Lee's $37.1m contract from LTA to supply and install cladding system for the up-and-coming Marina Coastal Expressway - Contract #467. Below is the summary info of Contract #467 extracted from LTA's website.....

Contract 467 is awarded to Nam Lee Pressed Metal Pte Ltd at a sum of $37.1
million. Contract 467 comprises the design, supply, fabrication and
installation of cladding panels and niche cabinets, and the provision of signages
and graphics on the cladding panels.
The cladding system will enhance road safety as the reflective surface of the
cladding material improves visibility in the tunnel. Green cladding panels with
unique identification numbers will be used in areas adjacent to cross passage
doors and escape staircase doors to assist evacuees in identifying the escape
path during tunnel emergencies.
Nam Lee Pressed Metal Pte Ltd is currently involved in supply and installing
claddings for various building projects, including a 13 storey building at the
International Business Park."
FY11 (ended 30Sep11) full-year results just out.....

Despite a only 9.6% yoy increase in NP to $10.869m - translating into a fully diluted EPS of $0.04781, based on the outstanding 226.761m issued shares and 8.2m employee stock options - Nam Lee in FY11 managed to deliver solid FCF of $18.1m (before accounting for working capital changes) and $16.4m (after accounting for working capital changes). This has raised 30Sep11's gross cash balance to $24.1m (from 30Sep10: $15.8m) and nett cash balance to $19.7m (from 30Sep10: $10.8m) - translating into a nett cash/share of approx. $0.087. 30Sep11's NAV/share of $0.438 also provides rock-solid asset backing.

An unchanged Final dividend of $0.01/share and Special dividend of $0.005/share declared. Great!
Latest (dated 1Dec11) update report by S&P on Nam Lee.....

I am particularly impressed by the heading (in bold) of the 4th para "Balance sheet healthy while cash pile is growing." In fact, if we consider a big chunk of the latest $40.4m trade debtors balance is actually funded by equity, Nam Lee's net cash balance as at 30Sep11 should be much more than the $20.0m (or $0.09 per share) figure indicated in S&P report.
Nam Lee has recently revamped its corporate website which has a lot of info on its current products and recent projects....

At the last done share price of $0.25, the declared $0.01/share Final and $0.005/share Special dividends for FY11 - totalling $0.015/share, expected to be paid in early Mar12 - gives a very decent yield of 6%p.a.
I just reviewed again Nam Lee's corporate website and was very impressed by its wide range of aluminium products, comprising Windows & Doors, Cladding System, Sun Breakers and Shades, Window Grilles, Railings, Letter Boxes, Trellis, Perforated Panels and Mainframes (an integral part of the refrigeration unit in all reefer containers)......

From Nam Lee's FY11 (ended 30Sep11) full-year results, aluminium products sold in FY11 chalked up total sales of $144.2m (or 86% of total group revenue of $167.3m, +20.4% yoy), and a PBT of $10.9m (or 81.9% of total group PBT of $13.3m, +8.9% yoy). This well-established and profitable business segment also makes Nam Lee probably the largest and most diversified aluminium products producer in Singapore.

Without doubt Nam Lee will stand to benefit from HDB's plan to scale up construction of new public housing flats to 25,000 units in 2012 and beyond, from 16,000 units in 2010 and 22,000 units in 2011. We should also bear in mind of the delayed impact on Nam Lee's group financial results, as their products are typically delivered and installed during the final stage of construction of such housing projects.

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