HupSteel

[Retired@52]

https://www.fool.sg/2016/05/20/this-stoc...idden-gem/

This Stock Could Be A Hidden Gem ! - ??

For Your Reading Only.

[HitandRun]

no idea on how to calculate how much they could get from the industrial building, maybe some industrial REIT investing VBs can come up with a figure based on current industrial occupancy and prices at comparable properties?

Have you got 100k/month to burn?

6 Kim Chuan Drive

[BlueKelah]

no idea on how to calculate how much they could get from the industrial building, maybe some industrial REIT investing VBs can come up with a figure based on current industrial occupancy and prices at comparable properties?

Have you got 100k/month to burn?

6 Kim Chuan Drive

@HitandRun -> Good job!

Wow spanking brand new after 6 months still no tenants? Maybe coz opposite also another building under construction too much noise and dust (if you look at the pictures).

Management must be sleeping!! They should break it up and rent out to smaller companies or startups. At least some income is better than no income.

[TUBInvesting]

no idea on how to calculate how much they could get from the industrial building, maybe some industrial REIT investing VBs can come up with a figure based on current industrial occupancy and prices at comparable properties?

Have you got 100k/month to burn?

6 Kim Chuan Drive

@HitandRun -> Good job!

Wow spanking brand new after 6 months still no tenants? Maybe coz opposite also another building under construction too much noise and dust (if you look at the pictures).

Management must be sleeping!! They should break it up and rent out to smaller companies or startups. At least some income is better than no income.

Management must be sleeping. Hope they wake up soon.

<Vested>

[davisng]

no idea on how to calculate how much they could get from the industrial building, maybe some industrial REIT investing VBs can come up with a figure based on current industrial occupancy and prices at comparable properties?

Have you got 100k/month to burn?

6 Kim Chuan Drive

@HitandRun -> Good job!

Wow spanking brand new after 6 months still no tenants? Maybe coz opposite also another building under construction too much noise and dust (if you look at the pictures).

Management must be sleeping!! They should break it up and rent out to smaller companies or startups. At least some income is better than no income.

Management must be sleeping. Hope they wake up soon.

<Vested>

This company loss big money in financial year ending 31/06/2016, anyone knows the reasons? Thanks for comments.

[bargainhunter]

no idea on how to calculate how much they could get from the industrial building, maybe some industrial REIT investing VBs can come up with a figure based on current industrial occupancy and prices at comparable properties?

Have you got 100k/month to burn?

6 Kim Chuan Drive

@HitandRun -> Good job!

Wow spanking brand new after 6 months still no tenants? Maybe coz opposite also another building under construction too much noise and dust (if you look at the pictures).

Management must be sleeping!! They should break it up and rent out to smaller companies or startups. At least some income is better than no income.

Management must be sleeping. Hope they wake up soon.

<Vested>

This company loss big money in financial year ending 31/06/2016, anyone knows the reasons? Thanks for comments.

it looks like they were writing off trade receivables and stock obsolescence 5.1m each and 10.6m and that more than accounted for the losses.  i think they are trying to set the stage for a recovery year in the coming FY.  they declared 1c div vs 0.1c the previous FY and started buying back their shares in the 1st 2 days after results but stopped today.  

After the clean up, Cash ($0.4346) + Available for sale financial assets ($0.1647) is already almost $0.60.
Total liabilities which is only ($0.0696) will easily be offset the written down receivables ($0.1130).  In addition to that, the already written down inventories are worth ($0.2401) and investment property ($0.2828).  Buying back shares at $0.565 is a steal for the company.

[davisng]

Have you got 100k/month to burn?

6 Kim Chuan Drive

@HitandRun -> Good job!

Wow spanking brand new after 6 months still no tenants? Maybe coz opposite also another building under construction too much noise and dust (if you look at the pictures).

Management must be sleeping!! They should break it up and rent out to smaller companies or startups. At least some income is better than no income.

Management must be sleeping. Hope they wake up soon.

<Vested>

This company loss big money in financial year ending 31/06/2016, anyone knows the reasons? Thanks for comments.

it looks like they were writing off trade receivables and stock obsolescence 5.1m each and 10.6m and that more than accounted for the losses.  i think they are trying to set the stage for a recovery year in the coming FY.  they declared 1c div vs 0.1c the previous FY and started buying back their shares in the 1st 2 days after results but stopped today.  

After the clean up, Cash ($0.4346) + Available for sale financial assets ($0.1647) is already almost $0.60.
Total liabilities which is only ($0.0696) will easily be offset the written down receivables ($0.1130).  In addition to that, the already written down inventories are worth ($0.2401) and investment property ($0.2828).  Buying back shares at $0.565 is a steal for the company.

Thanks for your analysis. Besides clear up for future growth, Is there any possibility that the management is trying to lower down steel business' equity base and setting up a stage to sell the steel business?

[bargainhunter]

@HitandRun -> Good job!

Wow spanking brand new after 6 months still no tenants? Maybe coz opposite also another building under construction too much noise and dust (if you look at the pictures).

Management must be sleeping!! They should break it up and rent out to smaller companies or startups. At least some income is better than no income.

Management must be sleeping. Hope they wake up soon.

<Vested>

This company loss big money in financial year ending 31/06/2016, anyone knows the reasons? Thanks for comments.

it looks like they were writing off trade receivables and stock obsolescence 5.1m each and 10.6m and that more than accounted for the losses.  i think they are trying to set the stage for a recovery year in the coming FY.  they declared 1c div vs 0.1c the previous FY and started buying back their shares in the 1st 2 days after results but stopped today.  

After the clean up, Cash ($0.4346) + Available for sale financial assets ($0.1647) is already almost $0.60.
Total liabilities which is only ($0.0696) will easily be offset the written down receivables ($0.1130).  In addition to that, the already written down inventories are worth ($0.2401) and investment property ($0.2828).  Buying back shares at $0.565 is a steal for the company.

Thanks for your analysis. Besides clear up for future growth, Is there any possibility that the management is trying to lower down steel business' equity base and setting up a stage to sell the steel business?

like asia enterprises, hupsteel has been in this business for a long time right?  unless the offer to buy is compelling (unlikely in the current conditions), i don't think they are keen to sell.

[TTTI]

Management must be sleeping. Hope they wake up soon.

<Vested>

This company loss big money in financial year ending 31/06/2016, anyone knows the reasons? Thanks for comments.

it looks like they were writing off trade receivables and stock obsolescence 5.1m each and 10.6m and that more than accounted for the losses.  i think they are trying to set the stage for a recovery year in the coming FY.  they declared 1c div vs 0.1c the previous FY and started buying back their shares in the 1st 2 days after results but stopped today.  

After the clean up, Cash ($0.4346) + Available for sale financial assets ($0.1647) is already almost $0.60.
Total liabilities which is only ($0.0696) will easily be offset the written down receivables ($0.1130).  In addition to that, the already written down inventories are worth ($0.2401) and investment property ($0.2828).  Buying back shares at $0.565 is a steal for the company.

Thanks for your analysis. Besides clear up for future growth, Is there any possibility that the management is trying to lower down steel business' equity base and setting up a stage to sell the steel business?

like asia enterprises, hupsteel has been in this business for a long time right?  unless the offer to buy is compelling (unlikely in the current conditions), i don't think they are keen to sell.

They arent trying to lower the equity base. They're just marking the inventory to market prices.
All the other steel stockists have done so.

In any case, I don't think there are any buyers keen to buy to begin with

[bargainhunter]

NAV = $1.3495
Current Price = $0.705
P/B = 0.52x
Cash + Avail for sale fin. assets + AR - ALL Liabilities = $0.6729
Inventories = $0.2184
Investment Properties = $0.2829
PPE = $0.1724
Miscellaneous assets =$0.0029