Tan Chong International (0693.HK)

[¯|_(ツ)_/¯]

0693@210
TCIL positive profit alert - starts liao?
https://links.sgx.com/FileOpen/202107080...eID=674066


Stay home and stay safe, everyone.

[weijian]

'Our factory and warehouse located at 798 and 800 Upper Bukit Timah Road has a total leasehold land area of 198,976 square feet until 6 April 2082. The property has the potential to be developed for residential use. We are considering the timing for redevelopment carefully in light of the various cooling measures in the property market promulgated by the Singapore government.'

The book value of its equity investment and property investment roughly equates to its market cap. So you get the business for free. But then, the business isn't exactly thriving.

798/800 Upper Bukit Timah Road was finally sold to CDL in late 2021 (property upcycle) and will be demolished/redeveloped by CDL into a condo (TOP 2029). So kudos that something has finally been done and the sale looks to be selling into the upcycle so far. The unfortunate thing is that the proceeds will be used as working capital.

Looking at AR22, it is alarming to see that Nissan/Subaru (mid tier brands) have been losing its attractiveness. From ~10.1k cars sold in Spore and 21k cars in other regions in 2018, it has reduced to 1.6k (80% decline) and 15.7 (25% decline) in FY22. For the alarming decline in Spore sales, the high COE price is probably the culprit? Looking at the breakdown by segment, only Taiwan looks to be sustaining its advantages and profitability for other regions.