World Precision Machinery

[Stockerman]

UOB Kay Hian has a buy call with target price at 89 cents...

Current market price is only 48.5 cents..

any view pls?

[godjira1]

UOB Kay Hian has a buy call with target price at 89 cents...

Current market price is only 48.5 cents..

any view pls?

capex = 25% of sales (not sure if recurring?). negative cashflow despite big profit I suppose for chasing after growth. S-chip discount applied, but I'm not 100% sure this passes the smell test anyway but I will keep watching this.

<not vested>

[dydx]

Impressive FY13 (ended 31Dec13) full-year results…..
http://infopub.sgx.com/FileOpen/WPM_4Q20...eID=276768 [result announcement]
http://infopub.sgx.com/FileOpen/WPM_4Q20...eID=276769 [press release]
http://infopub.sgx.com/FileOpen/WPM_4Q20...eID=276770 [presentation slides]

A higher Final dividend of RMB0.0625/share (equivalent to $0.0125/share) declared (vs. RMB0.05/share in last FY12).

World Precision's emphasis on making qualitative improvements on its products appears a sound strategy, as China shifts its
growth strategy from mass production to high-end manufacturing, giving rise to an increasingly high-tech industrial market.

[swn]

Impressive FY13 (ended 31Dec13) full-year results…..
http://infopub.sgx.com/FileOpen/WPM_4Q20...eID=276768 [result announcement]
http://infopub.sgx.com/FileOpen/WPM_4Q20...eID=276769 [press release]
http://infopub.sgx.com/FileOpen/WPM_4Q20...eID=276770 [presentation slides]

A higher Final dividend of RMB0.0625/share (equivalent to $0.0125/share) declared (vs. RMB0.05/share in last FY12).

World Precision's emphasis on making qualitative improvements on its products appears a sound strategy, as China shifts its
growth strategy from mass production to high-end manufacturing, giving rise to an increasingly high-tech industrial market.

Latest Q1 2014 result even more impressive, yet not many investors notice this gem!
(vested)

[swn]

Latest disclosure to SGX yesterday showed that the substantial shareholder bought 26m shares from different individuals at the same price of $0.40 on 25 Sep 14 bringing their total shareholdings to 73.848%, could this be a sign of delisting deal coming soon? The closing price before this disclosure was $0.34.
(vested)

[kelvesy]

Swn, saw your comment at NextInsight article.

Do you have any worries about this company being a S-chip?

[swn]

Swn, saw your comment at NextInsight article.

Do you have any worries about this company being a S-chip?

This S-chip looks ok to me, at least they do pay regular dividend. See their latest substantial shareholder action (refer to my post this morning)!

[kelvesy]

It looks amazing to me at this current price. True, it has been paying dividends. I've followed and read mostly all the articles posted on NextInsight.

Looks like a neglected but performing stock.

http://infopub.sgx.com/FileOpen/_FINAL_F...eID=274111

S$2,618,550 / 5,819,000 shares acquired = $0.45 per share (Huang Wei Xing to World Sharehold Limited)

http://infopub.sgx.com/FileOpen/_FORM3_F...eID=274235

S$3138750 / 6975000 shares acquired = $0.45 per share (Zhou Jing sold to World Sharehold Limited)

[kopihothot]

It looks amazing to me at this current price. True, it has been paying dividends. I've followed and read mostly all the articles posted on NextInsight.

Looks like a neglected but performing stock.

http://infopub.sgx.com/FileOpen/_FINAL_F...eID=274111

S$2,618,550 / 5,819,000 shares acquired = $0.45 per share (Huang Wei Xing to World Sharehold Limited)

http://infopub.sgx.com/FileOpen/_FORM3_F...eID=274235

S$3138750 / 6975000 shares acquired = $0.45 per share (Zhou Jing sold to World Sharehold Limited)

Actually, generally speaking, does SGX check the actual transacted price for this kind of announcements? Can the parties involved pull a fast one to create false impression?

IIRC, IMHO, there have been some M&A or RTO with very generous pricings where prices & volume shoot up following the announcement and the "deal" got cancelled soon after with no reported consequence (if have, then I missed them) on the parties involved.

[dydx]

3Q results just out…..
http://infopub.sgx.com/FileOpen/WPM_3Q20...eID=323861 [results announcement]
http://infopub.sgx.com/FileOpen/WPM_Medi...eID=323939 [press release]
http://infopub.sgx.com/FileOpen/WPM_PPT_...eID=323940 [presentation slides]
For 3Q, if we exclude the RMB4.2m allowance for doubtful debts and the RMB1.2m increase in bad debts written off - both likely related to sales carried out in previous periods - the company's PBT and PBT Margin were still relatively stable, falling in line with sales trend. Latest (30Sep14) NAV/share stood at a high RMB2.79 (approx. $0.59). Against today's closing share price at $0.305, it is pointing to another case of a grossly under-priced situation.

This time round, the company has declared a surprise Interim dividend of RMB0.10/share (approx. $0.0208/share), which will be paid out on 12Dec14 - just in time for X'mas shopping!