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World Precision Machinery
09-06-2017, 03:35 PM,
Post: #21
RE: World Precision Machinery
Will World Precision be able to turn around from a lackluster performance in 2016, this year (2017). The share price has dropped to $0.21 and is still going without any takers. 

dydx - You have been a long term holder of World Precision and they have been extremely generous with their dividend till 2015. Last year was NIL dividend. Do let me have your take on what may be the road forward for them. In fact this is one company with the major shareholders owning almost all the shares (87.43% between Mr. Wang Weiyao & Mr. Shao Jianjun). 

I sometimes wonder what is the rationale for even keeping Word Precision listed on the SGX. The majority holders can offer a decent premium on the market price and comfortably buy out the company. The dividends they would have received in 2014 and 2015 should be more than enough to cover this acquisition!
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."

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09-06-2017, 03:43 PM, (This post was last modified: 09-06-2017, 03:45 PM by Scg8866t.)
Post: #22
RE: World Precision Machinery
Hi I have just recently collected this. Today we see some selling from merill lynch close to 400lots not sure if its from the same person. Imagine 400mil shares almost 90% locked up means left with 40mil. To be able to sell 400lots seems to be an amazing feat. I really like this companies current price valuation 0.21 equates to ard 0.39x book with very negligible debt. They have always been profitable since ipo and are able to sustain very strong operational cashflow. Have to wait for 3Q or 4Q to see whether they are willing to payout some of that cashflow or pare down their 83mil rmb of debt. Its odd that they paid up their long term borrowings first last quarter(maybe because of higher interest). See how it goes.

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09-06-2017, 04:52 PM,
Post: #23
RE: World Precision Machinery
(09-06-2017, 03:43 PM)Scg8866t Wrote: Hi I have just recently collected this. Today we see some selling from merill lynch close to 400lots not sure if its from the same person. Imagine 400mil shares almost 90% locked up means left with 40mil. To be able to sell 400lots seems to be an amazing feat. I really like this companies current price valuation 0.21 equates to ard 0.39x book with very negligible debt. They have always been profitable since ipo and are able to sustain very strong operational cashflow. Have to wait for 3Q or 4Q to see whether they are willing to payout some of that cashflow or pare down their 83mil rmb of debt. Its odd that they paid up their long term borrowings first last quarter(maybe because of higher interest). See how it goes.

Hi Scg8866t, glad to have some company in World Precision. This counter can easily give a 50% return from current levels if there is a reversal to mean in their profitability this year. Let's hope for the best  Smile
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."

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05-08-2017, 05:04 PM,
Post: #24
RE: World Precision Machinery
World precision is an schip, but it doesnt act like one.

Almost 88% owned by founder and ceo
Pays high div regularly
Doesnt hoarde cash
Have never issued rights or placement(total issued shares always fixed at 400mil)
Has always been profitable since listing
Very strong operating cashflow. Price/ebitda less than 3x.
Trades at 0.398x book but rnav is much higher as their ppe is valued at cost(they have massive hectares of land and buildings in china)

With the recent privatization of china flex and lafe, it make sense for WP to consider the same route. They are extremely iliquid and they dont raise money from the market. Why even pay the listing fees then?

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12-08-2017, 09:50 AM, (This post was last modified: 12-08-2017, 09:51 AM by Scg8866t.)
Post: #25
RE: World Precision Machinery
Second quarter result out

http://infopub.sgx.com/FileOpen/2Q2017%2...eID=466640

Top line up 21% qtq
Bottom line up 1.2% qtq
Gross profit up 10.5% qtq
Debt reduced from 98mil rmb to 68mil rmb
Nav up from 0.512 to 0.524

The Group’s order book stood at RMB203.6 million as at 5 August 2017 compared to 169.1mil previous quarter.

Rev surge with increasing orders in expense of some profit margin decay. Quite a good set of result, wp will likely transition to debtless by Q4 if demand continues. We should expect a div payout this year for Q3 or Q4. See how it goes.

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26-10-2017, 11:05 PM,
Post: #26
RE: World Precision Machinery
(12-08-2017, 09:50 AM)Scg8866t Wrote: Second quarter result out

http://infopub.sgx.com/FileOpen/2Q2017%2...eID=466640

Top line up 21% qtq
Bottom line up 1.2% qtq
Gross profit up 10.5% qtq
Debt reduced from 98mil rmb to 68mil rmb
Nav up from 0.512 to 0.524

The Group’s order book stood at RMB203.6 million as at 5 August 2017 compared to 169.1mil previous quarter.

Rev surge with increasing orders in expense of some profit margin decay. Quite a good set of result, wp will likely transition to debtless by Q4 if demand continues. We should expect a div payout this year for Q3 or Q4. See how it goes.

Seems like the market does not expect any good news from World Precision, with somebody using CIMB Securities to throw down another 99 lots at upto a 52 week low of $0.185  today.

Will be keenly awaiting their 3Q17 results (3Q16 results were out on 14 Nov 2016)...
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."

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27-10-2017, 01:12 PM,
Post: #27
RE: World Precision Machinery
(26-10-2017, 11:05 PM)sgmystique Wrote:
(12-08-2017, 09:50 AM)Scg8866t Wrote: Second quarter result out

http://infopub.sgx.com/FileOpen/2Q2017%2...eID=466640

Top line up 21% qtq
Bottom line up 1.2% qtq
Gross profit up 10.5% qtq
Debt reduced from 98mil rmb to 68mil rmb
Nav up from 0.512 to 0.524

The Group’s order book stood at RMB203.6 million as at 5 August 2017 compared to 169.1mil previous quarter.

Rev surge with increasing orders in expense of some profit margin decay. Quite a good set of result, wp will likely transition to debtless by Q4 if demand continues. We should expect a div payout this year for Q3 or Q4. See how it goes.

Seems like the market does not expect any good news from World Precision, with somebody using CIMB Securities to throw down another 99 lots at upto a 52 week low of $0.185  today.

Will be keenly awaiting their 3Q17 results (3Q16 results were out on 14 Nov 2016)...

In my view, that one person sell down is not an accurate reflection of the market price. As WP is currently extremely iliquid(Founder and CEO holding on to 88% of the total shares), anyone whom wish to divest would likely bring down share price substantially.

We can see that the buy and sell que is back to 0.20 0.21 today. 

Do note WP is a subsidiary of a very big conglomerate called World Group(Which has 8 subsidiaries that sells construction vehicles like excavator, agri machines etc).

Wp has never made a loss before, but I do agree that there are headwinds currently if we look at their bottom line. It seems like they are sacrificing margin to gain more market share currently. Order book stands at RMB203.6mil. 

I sometimes wonder, why even continue to list on sgx. There is almost no transaction(sometimes in a month), they do not raise money via rights or placement since ipo. Why continue to pay the $300k + annual listing fees. To each his/her own.

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