Tan Chong International (0693.HK)

[brattzz]

TCI invest a lot in china shares? :O

[soros]

It seems TCI are making good profit selling Nissan Cross-overs and putting their profit into listed investments but these investments are producing losses of $650 Mil. The TCI directors may know the car sales business but are poor share investors.

The Directors have never heard of cut loss or value investing ?.

[brattzz]

maybe they brought at a high...

[karlmarx]

After reading about Eurokars' expansion and listing plans, I thought about Eurosports Global IPO a few years back and pondered whether Eurokars will face a similar fate. Probably unlikely since Eurokars has a more diverse product portfolio; being able to cater to the mass and affluent market.

http://www.businesstimes.com.sg/companie...es-listing

Then I thought about how TCIL is doing. I found its MTN 'prospectus' very informative to those interested about its business and risks involved:

http://infopub.sgx.com/FileOpen/LTN20170...eID=451417

Generally speaking, one half of TCIL's business is from Nissan (distribution in Singapore and long-term agreements with 52%-owned subsidiary Zero) and the other half is from Subaru (distribution in South East Asia, dealerships in South china, and assembly). TCIL sells much more Subaru cars as it has distribution and dealership rights over more territories. It also assembles Subaru cars in Thailand through a 75-25 JV with Subaru, and contracts its sister company Tan Chong Assembly Malaysia to perform assembly work as well. It is cheaper to assemble and sell cars in ASEAN, due to import taxes on foreign cars, so TCIL has been working towards this strategy to be able to price its cars more competitively. Nevertheless, profitability and free cash flow has been weak in recent years.

While the consensus is that it is unlikely that they are selling any of their (prime) real estate, whether it is for investment or own-use, it was noted that one of its land used as 'factory and warehouse' may be redeveloped as residential use, which could provide a small boost to earnings:

'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.

[cyclone]

Announcement - Inside Information

Tan Chong International Limited announced that, based on the preliminary review of and assessment on information currently available to the Company, the Group is expected to record an unaudited unrealised loss on its investments designated as at fair value through other comprehensive income for the year ended 31 December 2017.

The loss is due to share price changes of its listed investments, which are marked to market and therefore unrealised. The expected unrealised loss amounts to HK$726 million as compared to an audited unrealised loss of HK$82 million for the corresponding period in 2016. The unrealised loss will be reported in the Group’s other comprehensive income statement for the Period. It is not expected to be reclassified to the Group’s consolidated statement of profit or loss.

Details of the Group’s financial performance will be contained in the final results announcement of the Group for the Period, which is expected to be published before the end of March 2018.

[ZZF]

Anyone knows where to see top shareholders for HK co in the annual report?

Thanks in advance!

[lonewolf]

Pg 28 of the 2018 Annual Report

The Company has been notifed of the following interests (other than a director of the Company) in the Company’s issued shares as at 31 December 2018 amounting to 5% (2017: 5%) or more of the ordinary shares in issue: 

Tan Chong Consolidated Sdn. Bhd. (1) 705,819,720 35.05%
Promenade Group Limited (2) 264,067,000 13.12%
Tan Kim Hor (3) 144,801,495 7.19%
Pang Siew Ha  134,821,032 6.69%
Time Strategy Group Limited  (4) 104,497,700 5.19%
Lee Lang Long 103,930,622 5.16%

Notes:
1. The share capital of Tan Chong Consolidated Sdn. Bhd. is held by Tan Eng Soon as to approximately 22.85% and Tan Kheng Leong as to approximately 15.38%. The remaining shareholding is held by certain members of the Tan family who are not directors of the Company.
2. Tan Eng Soon is the controlling shareholder of Promenade Group Limited.
3. Tan Kim Hor passed away on 21 March 2016. His interest includes his spouses’ interests.
4. Tan Eng Soon is the controlling shareholder of Time Strategy Group Limited

[cyclone]

Profit Warning

The Board wishes to inform the Shareholders and potential investors that the Group expects to report a material decrease in the profit attributable to Shareholders for the year ended 31 December 2019 as compared to the profit attributable to Shareholders of HK$600.899 million for the year ended 31 December 2018.

The decrease in profit is attributable to substantial decrease in vehicle sales volume in the Group’s key markets of Singapore, Malaysia, Taiwan and China. The high initial start-up costs and teething production problems associated with the start of production on 26 February 2019 at the Group’s car plant in Thailand also impacted the result.

These factors negatively affected the Group’s profit. Despite this profit decline, the Group’s business operations remain relatively stable and the Group’s balance sheet continues to be in a healthy state.

Details of the Group’s financial performance will be contained in the final results announcement of the Group for the Period, which is expected to be published before the end of March 2020.

More details in https://links.sgx.com/FileOpen/202001030...eID=592287

[¯|_(ツ)_/¯]

TCI
based on the preliminary review of and assessment on information currently available to the Company, the Group is expected to record an unaudited unrealised loss on its investments designated as at fair value through other comprehensive income for the year ended 31 December 2020 (the "Period”). The loss is due to share price changes of its listed investments, which are marked to market and therefore unrealised. The expected unrealised loss amounts to HK$551 million as compared to an audited unrealised gain of HK$310 million for the corresponding period in 2019. The unrealised loss will be reported in the Group’s other comprehensive income statement for the Period. It is not expected to be reclassified to the Group’s consolidated statement of profit or loss.
https://links.sgx.com/FileOpen/202101080...eID=644627

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

0693@204
Tan Chong positive profit alert
https://links.sgx.com/FileOpen/202107080...eID=674066

The Group expects to record an estimated after-tax profit of HK$60 million for the Period as compared to an after-tax loss of HK$46 million for the corresponding period ended 30 June 2020. This profit improvement was contributed substantially by the gains in disposing off one of the Group’s properties in Singapore that is surplus to its business requirement.

Stay home and stay safe, everyone.