GP Industries

[Mushy]

Could it be the hk parent buying it? Hk parent also suspended.
If this is the case, then they prob already planned this when they started with gp batt.

Edited my post.
The parent hk company mentioned some substantial disposal on their halt announcement last fri.

[cyclone]

Not a GO.

Today's Announcement.

The Company refers to the trading halt on its shares, requested at 7.31 am on 29 June 2018. The Company has requested for an extension of the trading halt pending the release of a material announcement. The Company and its ultimate holding company, Gold Peak Industries (Holdings) Limited are finalising an announcement in respect of a major transaction by a wholly-owned subsidiary of the Company. The Company expects to release the announcement and lift the trading halt before the market opens on 5 July 2018.

[hh488]

Parent Gold Peak own more than 85% of GP Ind.

Why keep it listed?

[cyclone]

Not a GO.

Today's Announcement.

The Company refers to the trading halt on its shares, requested at 7.31 am on 29 June 2018. The Company has requested for an extension of the trading halt pending the release of a material announcement. The Company and its ultimate holding company, Gold Peak Industries (Holdings) Limited are finalising an announcement in respect of a major transaction by a wholly-owned subsidiary of the Company. The Company expects to release the announcement and lift the trading halt before the market opens on 5 July 2018.

Proposed Disposal of Land and Buildings Located in Huizhou, PRC

The Seller :  GP Electronics (Huizhou) Co., Ltd. (惠州市金山电子有限公司) ("GPHC"), a wholly-owned subsidiary of GP Industries

The Purchaser : Huizhou Cheng Hong Industrial Co., Ltd (惠州市晟鸿实业有限公司)

The Property : The Property is an industrial complex. GPHC has been granted the right to use the Land for industrial use. Such right will expire on 27 March 2053. The Property is currently used by the Group as a factory and a warehouse for the manufacturing of acoustic and electronic products and a dormitory for its employees.

Net Asset Value : Based on the unaudited consolidated financial statements of the Company and its subsidiaries for the financial year ended 31 March 2018, the net asset value (the "NAV") of the Property was approximately S$25.5 million.

The estimated gain on the disposal of the Property, after taking into account the Consideration, the Rent Free Value and the Compensation (assuming that the value of the Compensation approximates the costs and expenses that will otherwise be incurred by GPHC in relocating the operations from the Property), is approximately S$43.4 million before tax and approximately S$32.6 million after tax.

More details in http://infopub.sgx.com/FileOpen/GPInd%20...eID=513201

[¯|_(ツ)_/¯]

29 June 2020 No final dividend GP Industries
https://links.sgx.com/FileOpen/GPInd_FY1...eID=621721

If no dividend has been declared/recommended, a statement to that effect and the reason(s) for the decision.
In view of the adverse impact on the economy and economic uncertainties caused by the COVID-19 outbreak, the Directors do not recommend any final dividend for the financial year ended 31 March 2020, in order to conserve the Group’s financial resources amid the uncertainties.

Wear mask and keep your distance, everyone.

[¯|_(ツ)_/¯]

GP Indusries @ 64
Rev $1b (vs 1b)
GP  $316m (vs 279m)
NP  $42m  (vs 28m)
Div NIL (vs 1.8cents)
https://links.sgx.com/FileOpen/GPInd_FY2...eID=668041


The Group’s strategy to invest in building its brands, its on-line and off-line sales capabilities, invest into technology and product development and to rebalance its production capacity in China and South East Asia helped the Group maintain its business performance during the COVID-19 pandemic. The Group will continue with this strategy to further strengthen the competitiveness of its brands and products in key priority markets.

Stay home and stay safe, everyone.

[Shiyi]

GP Indusries @ 64
Rev $1b (vs 1b)
GP  $316m (vs 279m)
NP  $42m  (vs 28m)
Div NIL (vs 1.8cents)
https://links.sgx.com/FileOpen/GPInd_FY2...eID=668041


The Group’s strategy to invest in building its brands, its on-line and off-line sales capabilities, invest into technology and product development and to rebalance its production capacity in China and South East Asia helped the Group maintain its business performance during the COVID-19 pandemic. The Group will continue with this strategy to further strengthen the competitiveness of its brands and products in key priority markets.

Stay home and stay safe, everyone.

This company used to be a yield stock. Surprisingly, no dividend is given even that profits soar. Privatization coming?

[Mushy]

Last 2 years was boosted by property sales, and govt grants. Else bottom line would be negative. Even with these boosts, the net profit is unlike previous better years.

They stated dividends will resume after this year.
I agree it is still a yield stock (minus this year) due to the ownership structure and the parent gold peak owning a high proportion of shares.

[ghchua]

Last 2 years was boosted by property sales, and govt grants. Else bottom line would be negative. Even with these boosts, the net profit is unlike previous better years.

They stated dividends will resume after this year.
I agree it is still a yield stock (minus this year) due to the ownership structure and the parent gold peak owning a high proportion of shares.

Hi Mushy,

I beg to differ with you here. You can say that FY20 profits they had been profitable because of one-offs like disposal gains etc, but certainly not FY21.

For FY21, their gross profit is 13.2% more than FY20 at around $316m. Even if you strip off other operating income of $19.6m and $13.7m disposal gain from associate Meiloon, they would still be profitable. 

But the question really is, since they are profitable (even after stripping off those exceptional items), why are they not paying a dividend in FY21? 

They gave a positive profit guidance on 23 April 2021 that profit will increase significantly and then when result was announced yesterday, there was certainly disappointment today with their no dividend payout.

[PandaCup]

Last 2 years was boosted by property sales, and govt grants. Else bottom line would be negative. Even with these boosts, the net profit is unlike previous better years.

They stated dividends will resume after this year.
I agree it is still a yield stock (minus this year) due to the ownership structure and the parent gold peak owning a high proportion of shares.

Hi Mushy,

I beg to differ with you here. You can say that FY20 profits they had been profitable because of one-offs like disposal gains etc, but certainly not FY21.

For FY21, their gross profit is 13.2% more than FY20 at around $316m. Even if you strip off other operating income of $19.6m and $13.7m disposal gain from associate Meiloon, they would still be profitable. 

But the question really is, since they are profitable (even after stripping off those exceptional items), why are they not paying a dividend in FY21? 

They gave a positive profit guidance on 23 April 2021 that profit will increase significantly and then when result was announced yesterday, there was certainly disappointment today with their no dividend payout.

Hi, 

    Perhaps this was due to the earlier breach of loan covenants last year. The 'problem' with this company is the increasing debt they have taken especially since they took over GP batteries in 2017.  Loans have decreased from 500mil to 400mil+ for this year.

   Bright spots are that the Batteries Business which essentially was the former GP Batteries are up around 20% and the KEF part of the acoustics business is still doing well. 

   I think the positive profit guidance appeared to be red herring, and some including myself was led to think that dividends would be paid this year. Well, looks like have to wait longer... 

  My 5 cents.