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Nam Lee Pressed Metal
11-02-2012, 09:51 AM.
Post: #31
RE: Nam Lee Pressed Metal
(10-02-2012, 10:56 PM)ngcheeki Wrote: Nam Lee Q12012 result is out!!
http://info.sgx.com/webcoranncatth.nsf/V...penelement

Net profit attribute to owner $3,423.00K
Net cash per share increase to $0.1427
EPS per share $0.0151
NAV per share $0.4535
Price to Book based on last closing price of $0.26 = 0.57

I'm wondering why the company still want to issue scrip dividend as the company piggy banks are expanding. Why does the company need some much cash!!

my view is that since nam lee is so good at making use of its retained earnings to generate extra NP, it makes sense for them to conserve/retain the earnings with the firm rather than pay out part of the earnings as dividends. the cash raised from scrip dividend could hv a snowballing effect on retained earnings

after their agm, how come no mention when they r paying out 1.5 cts dividend?
=========== Signature ===========
To be simple is the best thing in the world; to be modest is the next best thing. I am not sure about being quiet.- G.K. Chesterton

Do not condemn the judgment of another because it differs from your own. You may both be wrong.- Dandemis

The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.- Bertrand Russell

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11-02-2012, 10:05 AM.
Post: #32
RE: Nam Lee Pressed Metal
(11-02-2012, 09:51 AM)port Wrote:
(10-02-2012, 10:56 PM)ngcheeki Wrote: Nam Lee Q12012 result is out!!
http://info.sgx.com/webcoranncatth.nsf/V...penelement

Net profit attribute to owner $3,423.00K
Net cash per share increase to $0.1427
EPS per share $0.0151
NAV per share $0.4535
Price to Book based on last closing price of $0.26 = 0.57

I'm wondering why the company still want to issue scrip dividend as the company piggy banks are expanding. Why does the company need some much cash!!

my view is that since nam lee is so good at making use of its retained earnings to generate extra NP, it makes sense for them to conserve/retain the earnings with the firm rather than pay out part of the earnings as dividends. the cash raised from scrip dividend could hv a snowballing effect on retained earnings

after their agm, how come no mention when they r paying out 1.5 cts dividend?

how did you tell that its retained earnings generates extra NP? it could be just the cycle. in 2009 bad earnings for a lot of cos. in 2010 - 2011 a lot of co reported good earnings.

as for the dividend announcement, maybe the board is considering scrip option?




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11-02-2012, 09:37 PM.
Post: #33
RE: Nam Lee Pressed Metal
(11-02-2012, 10:05 AM)freedom Wrote:
(11-02-2012, 09:51 AM)port Wrote:
(10-02-2012, 10:56 PM)ngcheeki Wrote: Nam Lee Q12012 result is out!!
http://info.sgx.com/webcoranncatth.nsf/V...penelement

Net profit attribute to owner $3,423.00K
Net cash per share increase to $0.1427
EPS per share $0.0151
NAV per share $0.4535
Price to Book based on last closing price of $0.26 = 0.57

I'm wondering why the company still want to issue scrip dividend as the company piggy banks are expanding. Why does the company need some much cash!!

my view is that since nam lee is so good at making use of its retained earnings to generate extra NP, it makes sense for them to conserve/retain the earnings with the firm rather than pay out part of the earnings as dividends. the cash raised from scrip dividend could hv a snowballing effect on retained earnings

after their agm, how come no mention when they r paying out 1.5 cts dividend?

how did you tell that its retained earnings generates extra NP? it could be just the cycle. in 2009 bad earnings for a lot of cos. in 2010 - 2011 a lot of co reported good earnings.

as for the dividend announcement, maybe the board is considering scrip option?

.........eps............reps.............dps
fy09....2.02....1.02....1
fy08....3.08...2.08.....1
fy10....4.36....2.86....1.5
fy11....4.78....3.28....1.5
fy07...4.7.....3.5......1.2

:-) after some data reshuffling, the trend looks clearer that with increasing reps, there is an accompanied increase in eps.

every $ retained increase NP by $1.08


=========== Signature ===========
To be simple is the best thing in the world; to be modest is the next best thing. I am not sure about being quiet.- G.K. Chesterton

Do not condemn the judgment of another because it differs from your own. You may both be wrong.- Dandemis

The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.- Bertrand Russell

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11-02-2012, 09:49 PM.
Post: #34
RE: Nam Lee Pressed Metal
(11-02-2012, 09:37 PM)port Wrote:
(11-02-2012, 10:05 AM)freedom Wrote:
(11-02-2012, 09:51 AM)port Wrote:
(10-02-2012, 10:56 PM)ngcheeki Wrote: Nam Lee Q12012 result is out!!
http://info.sgx.com/webcoranncatth.nsf/V...penelement

Net profit attribute to owner $3,423.00K
Net cash per share increase to $0.1427
EPS per share $0.0151
NAV per share $0.4535
Price to Book based on last closing price of $0.26 = 0.57

I'm wondering why the company still want to issue scrip dividend as the company piggy banks are expanding. Why does the company need some much cash!!

my view is that since nam lee is so good at making use of its retained earnings to generate extra NP, it makes sense for them to conserve/retain the earnings with the firm rather than pay out part of the earnings as dividends. the cash raised from scrip dividend could hv a snowballing effect on retained earnings

after their agm, how come no mention when they r paying out 1.5 cts dividend?

how did you tell that its retained earnings generates extra NP? it could be just the cycle. in 2009 bad earnings for a lot of cos. in 2010 - 2011 a lot of co reported good earnings.

as for the dividend announcement, maybe the board is considering scrip option?

.........eps............reps.............dps
fy09....2.02....1.02....1
fy08....3.08...2.08.....1
fy10....4.36....2.86....1.5
fy11....4.78....3.28....1.5
fy07...4.7.....3.5......1.2

:-) after some data reshuffling, the trend looks clearer that with increasing reps, there is an accompanied increase in eps.

every $ retained increase NP by $1.08


I thought you calculate reps with eps - dps? sure, higher eps comes with higher reps or only higher eps can generate higher reps if dividend is constant?

there is nothing telling that retained earnings indeed generate extra NP.


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14-02-2012, 02:04 PM. (This post was last modified: 14-02-2012, 02:30 PM by port.)
Post: #35
RE: Nam Lee Pressed Metal
http://www.world-aluminium.org/

A popular well known fact about aluminium is that when the old Wembley Stadium was demolished, 96% of the aluminium was reclaimed and recycled. Recycled aluminium is what the European Aluminium Association (EAA) terms an “Energy Bank”. This is because the aluminium recycling process uses only 5% of the energy used to create primary aluminium from bauxite ore(1). The International Aluminium Institute (IAI) estimates that 55% of world aluminium production is powered by renewable hydroelectric power(2). The recycling process creates high quality aluminium which loses none of the physical properties of primary aluminium, meaning that it can be endlessly recycled for use as new products without losing physical quality.

Aluminium is the third most abundant material on earth after oxygen and silicon, making up 8% of the earths’ crust(3). The current reserves are estimated to last for at least 400 years without factoring in recycled aluminium(4). Because aluminium is endlessly recyclable these reserves of become in effect inexhaustible.

The life cycle of aluminium products is measured in terms of decades rather than years. As a building material it is durable, requiring little long term maintenance. It is resistant to corrosion and common industrial pollutants giving aluminium products a much longer life cycle even in extreme environmental conditions. The EAA calls aluminium a ‘cradle to cradle’ material because although a particular product may have an end of life, aluminium as a material can be continually recycled and manufactured into new products.
...........................fy06..fy07..fy08..fy09..fy10...fy11
COGS as % of sales..80..85..85..82..83...81

i suspect nam lee may be using recycled aluminium to fabricate their products as COGS is relatively stable over the last 6 yrs.
=========== Signature ===========
To be simple is the best thing in the world; to be modest is the next best thing. I am not sure about being quiet.- G.K. Chesterton

Do not condemn the judgment of another because it differs from your own. You may both be wrong.- Dandemis

The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.- Bertrand Russell

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25-02-2012, 03:25 PM.
Post: #36
RE: Nam Lee Pressed Metal
(11-02-2012, 09:51 AM)port Wrote:
(10-02-2012, 10:56 PM)ngcheeki Wrote: Nam Lee Q12012 result is out!!
http://info.sgx.com/webcoranncatth.nsf/V...penelement

Net profit attribute to owner $3,423.00K
Net cash per share increase to $0.1427
EPS per share $0.0151
NAV per share $0.4535
Price to Book based on last closing price of $0.26 = 0.57

I'm wondering why the company still want to issue scrip dividend as the company piggy banks are expanding. Why does the company need some much cash!!

my view is that since nam lee is so good at making use of its retained earnings to generate extra NP, it makes sense for them to conserve/retain the earnings with the firm rather than pay out part of the earnings as dividends. the cash raised from scrip dividend could hv a snowballing effect on retained earnings

after their agm, how come no mention when they r paying out 1.5 cts dividend?

I sent an email to Nam Lee IR and the following are what I've received.

1. Dividend Status after AGM:
Script dividend option is in the pipeline and we are currently drafting for CDP's approval.

Once it is done, we should be able to announce the book closure date as well as the despatch of Notice of Election.

2. Why need such much cash

We have a major capex for a factory building as the present lease will expire at the end of 2014. Hence the requirement to keep the cash for the capex

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27-02-2012, 01:45 PM.
Post: #37
RE: Nam Lee Pressed Metal
As at 31Dec11....
http://info.sgx.com/webcoranncatth.nsf/V...penelement
Nam Lee's B/S had a net cash balance of $32.786m. If we add to this 50% of the Trade Debtors balance of $39.329m (which is essentially funded by Nam Lee's equity and comprises a big chunck from Carrier Transicold - a prime-name MNC - and sooner or later most of the balance will be collected in cash), we get a net cash + near cash total balance of $52.45m, equivalent to $0.197/share, based on the latest 266.761m outstanding issued shares. Nam Lee's shareholders will soon get a portion of this cash hoard when the declared/approved $0.015/share Final dividned is paid out in Mar/Apr12.

So based on the last done share price of $0.255 (on 24Feb11), and stripping out from it the $0.197/share from the cash + near cash total balance, Mr Market is now attaching a value of only $0.058 on Nam Lee's established and consistently profitable operating business.

It is unlikely that Nam lee will spend too much on the proposed new factory in Singapore, as the group already owns and operates from 4 other factories in Johore. Assuming Nam Lee spends $15.0m on the proposed new factory in Singapore, and deducting also the $4.0m to be paid out on the coming dividend payment, the group would end up having a reduced but still very large cash + near cash total balance of some $33.45m, equivalent to approx. $0.125/share, before counting the cash flow from profits in the remaining 9 months of FY12 and into FY13/14.

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27-02-2012, 02:16 PM.
Post: #38
RE: Nam Lee Pressed Metal
Looking at the location of Nam Lee at 31 Senoko drive, I could not perceive why the lease cannot be renewed.
It is right at the centre of the industrial estate and next to power station, there is basically no potential for redevelopment.

Unless Nam Lee is seeking to expand its floor area of its local factory.


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27-02-2012, 02:19 PM. (This post was last modified: 27-02-2012, 02:20 PM by freedom.)
Post: #39
RE: Nam Lee Pressed Metal
(27-02-2012, 02:16 PM)yeokiwi Wrote: Looking at the location of Nam Lee at 31 Senoko drive, I could not perceive why the lease cannot be renewed.
It is right at the centre of the industrial estate and next to power station, there is basically no potential for redevelopment.

Unless Nam Lee is seeking to expand its floor area of its local factory.

IIRC, the lease of the land with JTC has expired. I don't think JTC will just renew the land lease without major redevelopment done. the building should be around 40 years old already.


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06-03-2012, 12:44 PM.
Post: #40
RE: Nam Lee Pressed Metal
in mar 09 when our sti hit a trough, sgd/usd=0.64. now sgd/usd=0.79. during this period, sgd appreciate 19% against usd.

commodities such as aluminium are priced in usd. nam lee cost of raw material in usd, labour costs in sgd & ringgit while its sales are in sgd.

Agree that this could have contributed to 66% jump in NP for 1Q2012?
=========== Signature ===========
To be simple is the best thing in the world; to be modest is the next best thing. I am not sure about being quiet.- G.K. Chesterton

Do not condemn the judgment of another because it differs from your own. You may both be wrong.- Dandemis

The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt.- Bertrand Russell

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