PNE Industries

[sgpunter]

Very disappointing 2H in my opinion. Big write down and losses incurred. Dividend amount is a mere consolation and the only potential catalyst now is the outcome of the SPA. Otherwise, got to wait half a year more to see how the core business is doing...my guess is if the core business is not doing well, they may use the sale of the third tranche to sustain profitability and dividend payout...let's wait and see.

[BlueKelah]

Very disappointing 2H in my opinion. Big write down and losses incurred. Dividend amount is a mere consolation and the only potential catalyst now is the outcome of the SPA. Otherwise, got to wait half a year more to see how the core business is doing...my guess is if the core business is not doing well, they may use the sale of the third tranche to sustain profitability and dividend payout...let's wait and see.

It actually looks pretty ok to me considering there were ongoing losses with PNE PCB in the past and Mg has done well to sell most of it off at good price.

Revenue is sustained meaning contract manufacturing is taking up the slack from printing materials side. Mg has mentioned gonna look at stemming future losses from this segment.

The 2.6m bad debts provision (some of which could be collected) and 2m impairment loss on equipment/plant could be considered part and parcel of streamlining or reduction of the printing materials segment as management has mentioned.

Balance sheet is still looking pretty strong with good net cash position and no debts. Still has potential to boom if SPA concludes and Mg reveals future plans, will take the opportunity top vest more if share price dips futher. Still waiting for the US post-QE drop to happen.

[desmondxyz]

Seriously don't think the SPA will go through. Now PNE is trading at < 50% of the offer price, why should Hummer pay so much to acquire 29% of share? Unless the TANs agree to revise the acquiring price to a more realistic level......

[BlueKelah]

Seriously don't think the SPA will go through. Now PNE is trading at < 50% of the offer price, why should Hummer pay so much to acquire 29% of share? Unless the TANs agree to revise the acquiring price to a more realistic level......

Same question to be asked with the sale of PNE PCB.

Obviously something is going on behind the scenes which will profit Tans and likely shareholders.

dun think the "value" of this company has anything to do with the sale price, could just be big towkays using their company to do some capital movements.

[Jack EL]

Disappointed with the payout... but am keeping. Agree with Blue and I sense something else brewing looking at trading today.

[sgpunter]

http://infopub.sgx.com/FileOpen/AnnforTe...eID=328875

No surprises in guessing that the S&P Agreement has been terminated.

To be honest, I do start to wonder how genuine the offer actually is. Firstly, it was offered at a ridiculously higher price than the last traded price when it was announced. Secondly, the offeror is very elusive and nothing much can be found on Hummer/Mandias Sintesana.

I think we can expect a knee jerk reaction to the news on Monday.

[desmondxyz]

A termination makes full sense for the deal that makes no sense at all...

[changwk]

Hi,

In the year 2014, there was a HY results announcement on 28th Apr 2014.
I looked thru PNE announcements for 2015. I don't see any news on 2015 HY results.
The last announcement made thru SGX was on 28 Jan 2015.

Did I miss something on the 2015 HY results?

[Jack EL]

Bravo! 1c interim plus special dividend! I was expecting 1c for the full year, this is really unexpected. Hopefully, there are more good news to follow.

[BlueKelah]

Core business stable but not as profitable as before. Noticed other income 2mill plus from forex gains.. Without this the leftover 1mill plus profit not that great. And the depreciating USD could mean some forex losses in next report. mg also has stated costs are increasing on china side.

However the interim dividend of total 1c is some consolation for continuing holding and will be >7% yield for this year. Management seems to be wanting some $$ back in their pockets which is good for OPMI.

PNE PCB with a NAV of RM0.91/share is still trading around $1 range and the company has in fact turnaround from loss making last year and making a small profit now.

With net cash level at 66.5% of MCap and 38% discount to NAV, once again looks quite attractive.

-v-