PNE Industries

[dydx]

This obscure and illiquid counter has just posted a set of much improved full-year results for FY10 (ended 30Sep10).....
http://info.sgx.com/webcoranncatth.nsf/V...3002318A0/$file/FY10H2ResultsAnnouncement.pdf.pdf?openelement

All key measures - Revenue, GP, GP Margin, PBT, NP, Equity, Nett Cash Reserve, and even Share of Results of Associates - have shown good improvement.

Based on the last done share price of $0.075, and against the latest (as at 30Sep10) NAV/share of $0.193 and FY10's EPS of $0.026, this counter appears grossly under-priced by Mr Market.

Any views from fellow forumers?

[dydx]

In a rare move, someone pushed up the share price to a high of $0.082 (up $0.019, or 30.2%!) by mopping up 251 lots, in the last 30 minutes before the market closed today. Something positive coming? Possible privatization by the controlling shareholder, Tan Family?

[pianist]

pne surged 5% to 0.105 today? something is brewing?

[dydx]

I am quite impressed by the latest FY12 (ended 30Sep12) full-year results.....
http://info.sgx.com/webcoranncatth.nsf/V...F00307DAD/$file/PNEIndustriesFY12Results.pdf?openelement
I think it is relevant to note that the marked 132% yoy increase in NP to $5.607m - giving a full-year EPS of $0.0167, based on the latest 335.667m issued shares - is after accounting for a 0.428m forex loss; otherwise, even higher NP and EPS numbers would have been recorded. It is also relevant to note that both sales/revenue and profits were markedly higher when compared with this 1H-FY12 and last 1H-FY11; this is indeed very encouraging and a positive indicator of likely further growth to come. It is also relevant to note that both the core Contract Manaufacturing and Trading divisions posted markedly higher profits. B/S as at 30Sep12 remained rock-solid and debt-free, together with a large cash reserve of $8.019m - equivalent to $0.024/share - and a substantial portion of working capital (trade receivables and inventories) funded by own capital funds.

A higher Final dividend of $0.004/share (last FY11: $0.003/share) declared and will be paid on 25Feb13.

Against the latest NAV/share of $0.202, PNE Industries' last done (as at 27Nov12) share price at $0.089 points to a grossly-underpriced situation.

More info on PNE Industries.....
http://www.pne.com.sg/industries/index.html
I find their printing plates manufacturing operation (as the main part of the Trading division) based in PRC most interesting.....
http://www.pneprint.com/index.php

[kopihothot]

someone just fire-sale to 0.07............any news? Very very illiquid counter.

vested .

[Stockerman]

May I ask what economic moat does the company have? It seems to be in a very competitve sector?

[investright]

someone just fire-sale to 0.07............any news? Very very illiquid counter.

vested .

No news as i know but its really on a fire-sale.. Undervalued stock with consistent dividends and relatively stable earnings. I believe the poor liquidity is heavily discounting stock price.

[Stockerman]

a. Have the earnings been consistent across the entire economic cycle (in both good and bad times)?

b. No losses to date in any FY?

someone just fire-sale to 0.07............any news? Very very illiquid counter.

vested .

No news as i know but its really on a fire-sale.. Undervalued stock with consistent dividends and relatively stable earnings. I believe the poor liquidity is heavily discounting stock price.

[kelvesy]

1 - 5% NPM after tax - not sure whether it shows how competitive this industry is... and whether can it grow further? I'd prefer a company having a larger NPM. If things are not handled wisely, a low profit margin may slip into red terriority easily.

18% public float if i am not wrong. shall KIV. Wonder why would few or a particular investor sell down this stock?

[kopihothot]

not sure if I mis-read anything but their current cash of $0.047 and 18% free float ........the Tans can literally privatise the coy with no cash from their own pocket at nav of $0.20.

Please correct my numbers if wrong. Thanks.