Hanwell Holdings (formerly: PSC Holdings)

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#1
Hi fellow value investors,

Anyone following or vested in Hanwell?

This stock was in the news recently on the back of i) Mr Sam Goi's purchase all the way from 20+ cents to 30 cents ii) Hanwell's sale of Intraco which attracted much media attention lately given the possible impending tug of war.

Stock is cheap at about 0.6x book with quite a few hidden assets in the portfolio/balance sheet. Among them, Hanwell owns 64% of Tai Seng Packaging (listed on SGX) worth ~S$32m. And its sale of stake in Intraco should yield S$18m. Its current market cap is at S$175m. Note that its net cash per share is S$0.055 OR ~20% of market cap.

Some investors might have noticed that over the recent few months, Mr Sam Goi has been busy buying and the company which rarely made share purchases (the last time they were active was back in 2009) also started actively buying back shares - the last on 8 June where they bought 70,000 shares at $0.317. And on 8 June, current shareholder and wife of Executive Chairman, Mdm Tang Cheuk Chee also increased her stake by a notable 0.25% at an average cost of $0.334. This is the same lady that bought back the 8.9% stake in PSC from Super Group, which used to be a substantial shareholder in PSC, at $0.4864 in Feb 2011.

A case of deep value?

This small company, often associated with my childhood favourite Econ Minimart and the Saturday night generous giveaways, has seemingly become as exciting as its household "Yi Kang Zi Ye" show aka Econ Night Show in recent weeks.

Would appreciate if any of the fellow forummers here could share any insights/take from the recent developments. And the potential implications.

Humbly,
chimpy
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#2
The PE for Hanwell is 74. There are no growth in revenue for the last 2 years. While I still remember the Yi Kang Zi Ye hosted by Chen Shu Chen in the past, it appears that the number of Econ Minimart has been diminishing as compare to the 90s. Considering the high PE, I would not think it is a good buy.
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#3
I still remember the "Yi Kang Zi Ye" then. It has the similar popularity as "Sheng Shong night" now.

I also notice that Econ Minimart is disappearing slowly in the last decade. Beated off by Sheng Shong?

Preliminary comments of the stock

- PE is high now @75, not sure the reason of the depressing net income in FY2011? But it is the similar performance in FY 08. Likely due to macro economic factor, rather than specific depressing factor to the company

- Last five (5) year ROE/ROA are below/around 5%, although remain positive. It is likely the biz is not lucrative for good return. One point to note, in Q42011, the net profit is in losses.

- current/quick ratio > 2, long term debt is low and FCF is positive. It is likely the company is continue to survive
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#4
Goi Seng Hui must have some plans for this guy. Violet Profit holdings is probably a proxy for somebody else...
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#5
And Hanwell completes the deal to sell Intraco for 70c/share! At least they manage to squeeze out a 2million profit on this counter....
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#6
2m profit from selling its stake in intraco..i dun think is a smart move
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#7
(28-08-2012, 09:46 AM)pianist Wrote: 2m profit from selling its stake in intraco..i dun think is a smart move

What to do? They bought it high. And honestly, its not yielding as much as Tat Seng.

Tat seng is doing well for Hanwell.

Now all eyes are on Goi Seng Hui to see what is his next move for Hanwell. Having revived GSH Corp, his attention is likely to shift to Hanwell having already installed his son on the board.
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#8
Yay, Trading Halt again. Rolleyes
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#9
kind of quiet here...

this company seems to be trading at around 50% of tbv, profitable, reasonable/low debt, what's the story here????

thanks in advance...

regards
rijk
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#10
looks like minority interest of 15% of equity is entitled to 60% of earnings? that would explain a lot about the low valuation...

how does this work?

regards
rijk
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