GP Industries

[cyborg]

Share buy-back again today, 300.000 shares @ 0.595. Today's volume is only 305 lot.
Alamak, if this is going on most of the time, how can it drift lower ?

[pianist]

today announcement showed Gold Peak now has 80.022 % stake in GP industries from recent series of sharebuyback

[Nick]

today announcement showed Gold Peak now has 80.022 % stake in GP industries from recent series of sharebuyback

The recent share buy back has increased Gold Peak stake to 81.041 %.

A full 1% increase without spending a single cent hehe.

I wonder whether will it declare a 2.5 cent final dividend in 6 months time to bring together a total dividend of 4 SG cents ?

[freedom]

trading halt.

its parent said in hkex that "pending the release of an announcement in relation to a very substantial disposal."

the parent is selling its stake in GP Industries?

[portuser]

If GP industries is to be sold, should trading halt be similarly applied to its 49% owned GP Batteries?

[cyclone]

Since GP Batteries didn't apply a trading halt, GP Industries may only dispose it's Electronics & Acoustics business and Automotive Wire Harness business.

<not vested>

[cyclone]

GP Industries will dispose all of it's shareholding in Shanghai Jinting Automobile Harness Limited for consideration of SGD 62.8 million.

[guru]

No movement of the share price? The market is impartial to this transaction?

GP Industries will dispose all of it's shareholding in Shanghai Jinting Automobile Harness Limited for consideration of SGD 62.8 million.

[shanrui_91]

interesting company that seemed to be trading at huge discount to book. Total interest in associate is recorded at $290 million but the market value of the stake is only $80m. This is as a result of the accounting for associate where share of profit of associate is added in and dividend received from associate is deducted. The question should then be does its associate deserve to trade at book value given the high amount of inventory and receivables in both its associates? Of course, another significant figure will be the PPE which comprises leasehold as well as machinery.

[dzwm87]

Contributions from the JV is based on proportionate consolidation into the P&L statement. I do not think they are included under associates' income as this is shown clearly under its 2012AR or unless I had interpreted it wrongly. Correct me if I am wrong

So for 2012, contribution from the JV of JAH did actually pull GPI into profitability as they contributed S$12.6mln while FY12 consolidated PAT was only S$5.3mln.

If you look at 9M13, PBT was S$9.5mln while contributions from JAH was around S$4.4mln - close to 50% of consolidated PBT.

From what it seemed, which I stand to be corrected, JAH is a decent profitable business for GPI. The divestment doesn't seem to streamline GPI into a more profitable company (i.e. selling loss-making businesses and focusing on their profitable ones) but it instead looks likely not be accretive. Are the other businesses look profitable? That I do not look as I have yet to look into it.

Also, the proceeds will be used for WC purposes and paying down of debts, nothing of which will indicate the return of loss earnings.

Lastly, part of the sales consideration is based on a dividend payout from JAH Group itself, which, form the purchaser's point of view, isn't really forking out of their own pocket. Ex-dividend distribution, the purchase is valued at around 8x P/E assuming a 20% tax rate and at around 0.85x P/B. (Note: This doesn't mean GPI should trade at this level as they are doing a different type of business altogether)