Pan United Corporation

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jumped >11% today..something is brewing?

The Board of Directors of Pan-United Corporation Ltd (the âCompanyâ) refers to the letter from the SGX-ST dated 3 September 2012 querying on the substantial increase in the Companyâs share price and list below the Companyâs response. A copy of the SGX letter is attached for reference.
SGX-ST Query:
Are you aware of any information not previously announced concerning you (the issuer), your subsidiaries or associated companies which, if known, might explain the trading? If yes, the information must be announced immediately.
Companyâs Response:
SGX-ST Query:
Are you aware of any other possible explanation for the trading?
Companyâs Response:
No, except that there is an article in The Straits Times dated 1 September 2012 in which our Companyâs name was mentioned.
SGX-ST Query:
Can you confirm your compliance with the listing rules and, in particular, listing rule 703?
Companyâs Response:
Yes. The Company is in compliance with the listing rules and, in particular, listing rule 703.
Sigh..... Looks like I am going to miss this boat
Something is brewing? Vested.
(03-09-2012, 10:09 PM)pianist Wrote: Companyâs Response:
No, except that there is an article in The Straits Times dated 1 September 2012 in which our Companyâs name was mentioned.

What article?
DBSV buy call with $0.78 target price
Thanks, egghead.
PUC has gone up from $0.70 to $0.97 in about 1 month's time. Interestingly, the upward movement started after MIIF announcement of the strategic review. I wonder if PUC is in talk with MIIF to buy over their CXP stake.
From UOBKH Research Report (17th Oct 13)

Key takeaways from Changshu Xinghua Port site visit

- Maintain BUY and target price of S$1.25.
- We recently visited Pan Unitedâs Changshu Xinghua Port (CXP) in China to get an update on the operations from the local management.

Investment Highlights
- Re-investing in an old business. In Oct 05, Pan United (PUC) divested 24.7% of its effective interest in CXP to Macquarie International Infrastructure Fund (MIIF). Together with the acquisition of other minority interests, MIIF paid S$112.6m for its 38% effective interest in CXP. In its most recent transaction, MIIF divested the 38% effective interest in CXP (34.2% effective interest in CXP to PUC, 3.6% effective interest to Petroships) for S$112.2m. Since 2006, CXPâs EBITDA has grown at a 4.6% CAGR (FY06-FY12) to S$30.4m in FY12.

- Low breakeven utilisation. CXP has a low breakeven utilisation rate of only 30%. With CXPâs top 5 customers (repeat customers of more than a decade) already forming 60-70% of CXPâs cargo handling volume, we believe CXP is likely to continue with its consistent profitability. In 2012, CXP enjoyed a high utilisation rate of 86.4%.

- Looking for a 4th cargo. CXP currently handles three main forms of cargoesâ steel, logs and pulp & paper. According to management, CXP remained profitable despite the global economic downturn in 2008 as cargo handling for logs and pulp & paper remained relatively resilient as regions around Yangtze River like Chong Qing and Hunan continue to exhibit strong economic growth. With greater control over CXP, PUC is looking for a 4th cargo to grow its bottom-line and reduce revenue fluctuations due to cargo concentration.

- Competition stepping up. Taicang Port, 70km away from CXP, has recently opened a new dock, Meijin Terminal. The 775m new terminal offers three berths which allow 5-tonne ships to anchor and three berths for 1,000-tonne barges with a throughput capacity of 4.15m tons/annum. Despite the rising competition, CXP has been able to maintain its market share in the region.

(Not vested)
5 Things You Should Know About Pan-United Corporation
By Alison Hunt - January 9, 2014 | See also: P52

While upon hearing the name Pan-United Corporation Ltd. (SGX: P52) you may immediately start picturing smartly dressed folk standing by sleek aeroplanes. You couldnât be more wrong. The company is in fact Singaporeâs largest cement and ready-mixed concrete supplier â and judging by the amount of construction I can see from my window alone, kept pretty busy by this island state.

From China, to Singaporeâ¦

Like many of Singaporeâs entrepreneurs, Pan-Unitedâs founder has links to southern China.

Ng Kar Cheong was born in 1934, to a humble family in Jinjiang, Fujian province. However, following the Japanese imperial armyâs invasion of China, many young Chinese chose to flee to seek a better life in South East Asia.

Mr Ngâs father was no exception and headed for Singapore. He soon sent for his wife and seven-year-old son Ng Kar Cheong, who quickly settled into school.

Japanese Occupation of Singapore

However, the happy times lasted less than a year, as Singapore was next on the Japanese armyâs list. Kar Cheong was pulled from school to instead sell you tiao (fried fritters) on the street to help his family.

Grandma Cai

By the time the war ended, Ng Kar Cheong was a teenager, proudly earning a modest sum selling his fritters.

However, things were to change when his Grandma Cai came to Singapore. Believing that the best way for her favourite grandson to be successful was to go into business, Ng Kar Cheong followed her advice and left the hawker trade. He became an apprentice and then took a job at a hardware store.

Then, in 1957 he spent all of his savings on a truck, becoming a truck-owner-driver.

Hiap Soon & Company

However, his life was soon to change completely â and due to Grandma Cai. After reprimanding him for leaving the business world, the forthright lady insisted he sell the truck. She then borrowed enough cash to allow him to become a partner in a new hardware company being set up by his friends. On 1 September 1958, the four partners established their new firm: Hiap Soon & Company.


The timing was good. The Korean War had ended; there was a strong demand for hardware and following Singaporeâs independence in 1965, opportunities plentiful. Hiap Soon grew rapidly, and started to extend credit to customers.

However, this made Ng Kar Cheong uneasy â and realising how much foreign direct investment Singapore was attracting, proposed the company move into the construction industry.


Ng Kar Cheong had a lot to learn about the construction industry, including how to source for barges to support his projects. In 1974, he set up a subsidiary of Hiap Soon â the Pan-United Shipping Pte Ltd to deal with this side of the business â and when Hiap Soon was split up in 1984 Mr Ng received Pan-United as his share.

Location, location, locationâ¦

Despite the marine industry being in the doldrums at the time and friends telling him this was a big mistake, Mr Ng and his son Henry worked together to expand their ship repair and ship building business. Mr Ng argued that Singaporeâs strategic location in the centre of major shipping routes would make it the perfect place for ships to stop for repairs and maintenance.

Henry Ng

He also believed strongly in involving his children in the business and made his son Henry Managing Director in 1988. By the 1990s, Pan-United Shipping had become one of the largest, medium-sized shipyards in Singapore and the company continued to expand into China and South East Asia.


In the 1990s, the Singapore Government decided to shut all of the quarries on Pulau Ubin. The Pan-United Corp. group set up a joint venture to open a quarry on Indonesiaâs Karimun Island, ferrying the aggregate to Singapore using its own barges.

The group expanded its basic building materials business and formed the United Cement Pte Ltd with Kedah Cement Holdings, which was soon importing cement to supply amongst others, Singaporeâs Housing & Development Board. The company also formed its own, ready-mixed concrete operation.

But did you knowâ¦

The Pan-United Corp. group also controls Changshu Xinghua Port in the Jiangsu Province, China.
Henry Ng is ranked at position 34 in the Forbesâ Singaporeâs 50 Richest list and rumoured to be worth $160m.
He is also a council member of the Singapore Chinese Chamber of Commerce & Industry.
Ng Kar Cheong opened an industrial park and water treatment plant in his hometown in China, in a bid to improve the lives of the people in his old village.
Pan-United Corp. was the sole ready-mixed concrete supplier for the construction of Changi Airportâs Terminal 3 and the Fort Canning Tunnel. The group was also responsible for the re-paving of more than 100km of Singaporeâs roads to âdress-upâ the city in time for it to host the 2006 IMF and World Bank meetings.

Today, the Pan-United Corp. group is an investment holding company, which engages in integrated logistics and resource development business in Asia.

Its three main segments include Shipping, Port and Logistics (including the operation of the Changshu Xinghua Port in China) and its Basic Building Resources segment is Singaporeâs largest supplier of cement and ready-mixed concrete.

It also engages in the production of asphalt and the building and repair of roadways.

Not a bad story for a boy who was forced to drop out of school to sell fritters â but who could fortunately boast a most determined and ambitious grandma.
Some larger Cement players in Singapore

Asia Cement Co. Ltd. is South Korea's cement, concrete, and chemical company headquartered in Seoul, Korea. Established in 1965, the company primarily produces remicon and portland cement.
(Also see SIN HENG CHAN below for alliance)

Lafarge is a French industrial company specialising in four major products: cement, construction aggregates, concrete and gypsum wallboard. The company is the world's largest cement manufacturer.
(Also see SIN HENG CHAN below for alliance)

-EnGro's history dates back to 1973 when it was formed as a tri-partite joint venture among SsangYong Cement Industrial Co. Ltd (South Korea), DBS Bank, and Afro-Asia Shipping Co. in Singapore. Initially known as SsangYong Cement (Singapore) Pte Ltd, the Company was listed on the main board of the Singapore Stock Exchange in 1983 as SsangYong Cement (Singapore) Limited.
-Through the years, while the building materials business remains as SsangYong Cement (Singapore) Limited's core focus, it has strategically diversified its business platform to encompass Specialty Polymer. In 1985, the Company embarked on making Hi-Tech & Venture Capital investments.
Year 2005 marks the beginning of a new chapter for the Company as she embarked on growth through new partnership building.
-On 17 February 2005, SsangYong Cement (Singapore) Limited was renamed as EnGro Corporation Limited to reflect its geographical expansion and business diversity.

-The groupâs cement terminal activities are carried out through Sin Heng Chan (Singapore) Pte Ltd. The terminal which sits on prime water front land, in Jurong port has a storage capacity of 60,000 tons and operates its own 800 ton/hour SIWERTEL unloader. The terminal is installed with fully automated and computerized unloading and despatch facilities, serving the needs of the concrete industry and have handled millions of tons of cement since 1997.
-The group also has a joint venture export cement terminal in Jintang Port with the Hebei Jidong Cement Corporation, PROC.
-Sin Heng Chanâs concrete interest in Singapore, is held in Alliance Concrete Singapore Pte Ltd in joint venture with Lafarge Cement and Asia Cement Corporation. It is one of the largest concrete companies in Singapore having supplied major government projects and well as concrete demands of the private sector.
-Sin Heng Chan also operates a ready mix plant in RAK, United Arab Emirates in joint venture with Robodh Contracting Co LLC and two other ready mix plants in Chongqing and Mianyang, Sichuan, PROC. These are all twin mixer stations with state of the art mixing and batching equipment and a fleet of company owned GPS trucks and pump trucks.
-The concrete operations prides itself in timely deliveries of concrete of consistent and high grade quality to all its customers ranging from
government contracts, iconic projects as well as to the burgeoning property market in China.

G & W Group of companies is the building materials division of Koh Brothers Group Limited which is listed on the main board of the Singapore Exchange Limited. G & W Group has a strong presence in Singapore, China, Indonesia and Malaysia. Together with a strong fleet of equipment and modern manufacturing facilities, the group consistently churns out products and services of supreme quality.

Singapore Cement Manufacturing Co., (Pte) Ltd is jointly owned by Hong Leong Asia Ltd and Taiheiyo Singapore Pte Ltd. SCMC is the sole distributor for Japanese Onoda Brand Ordinary Portland Cement in Singapore.

Holcim is a Swiss-based global building materials and aggregates company. The company also supplies ready-mix concrete and asphalt including associated construction services.


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