Fu Yu Corporation

[CityFarmer]

Thanks a lot!

Pardon my ignorance, Where do you find info of cash level of subisdaries?? Foot note of AR? under which section, can't seem to find those info...

How about associate? are they tabulated under "Share of profit from equity accounted associates?"

The amount reflected is already based on the % owned? For example, group owned 40% of associate, and the "Share of profit from equity accounted associates?" is say 1 million, the the profits from associate is 2.5 milllion???

Let me give it a try

In the balance sheet, there are columns for group and company. Under the "cash and cash equivalent" item, you can find out where cash is owned.

Normally, you can find info on the % owned for each associate in AR of the company.

The amount under "Share of profit from equity accounted associates" should be the actual entitlement of the company

[Townboy]

I am hoping for a dividend but not a special dividend if current full year result is in black. Fu Yu has been losing money for pass 3 years and better to preserve cash. I don't think it is uncommon that technology or manufacturing companies holding strong cash position specially in those cut-throat industry. In 2012 annual report, the chairman did mention a new plant was being setup in Chongqing in Dec 2012 and operational in 2nd quarter. So, some of the cash might be used to pay for the new plant. I like what I see and paying dividend will clear some doubts (my doubts too) if the cash is real. What I do not like to see is lack of insiders buying.

My biased view - vested

[dydx]

In terms of operating results and profitability, Fu Yu is not out of the woods yet and is worst off when compared with better managed Fischer Tech and Sunningdale Tech. In terms of discount of share price vs. NAV, all 3 are in the same boat, so it is quite clear that Mr Market is not at all happy or positive towards the plastic parts industry yet. Of course, this may change in the future, however it is more likely to happen first for the better managed companies. Among the 3, Sunningdale Tech pays a regular yearly dividend of $0.006/share, and Fischer Tech has started to pay dividend again in last FY12 - $0.006/share.

[persia]

Not sure why the price suddenly shot up to 7 cts...

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and now is at 7.5 cts....??

[SLC81]

This is the one of the last few with very good upside potential. Plastic industry is finally turning around.
Q2 result is to be released soon and with some measures to cut costs there could be very good surprise on the upside

[Big Toe]

Plastic industry turning around? Not going to happen.
It's a commodity type business and is cut throat.
Many MNCs have RnD and manufacturing that are no longer based in Singapore,
these plastic companies will have a very difficult time finding customers and getting
right prices. It is not too difficult or expensive to set up a moulding plant.
The competent ones will at most make a bit of money, the average ones will just close.

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More profitable to rent out their factory space and convert plastic business to REIT instead.

[dydx]

The best recent profit turn-around story among SGX-listed plastic components contract manufacturers is Fischer Tech.....
http://infopub.sgx.com/FileOpen/FTL%20AR...leID=18780 [FY13 (ended 31Mar13) AR]
This counter is now trading cum a total $0.009/share in Final and Special dividends, with 'XD' date fixed for 13Aug13.

I think it is fair to say that there is still a role for plastic components in many of our modern-day gadgets and products, and the well-established and better-managed manufacturers of such components should stand a fair chance to earn a reasonable return from their business and on their capital. Invariably, such manufacturers would have to be of a certain economic size, technically advanced and experienced in certain niche technologies, and run an efficient manufacturing operation in the right locations.

I suppose if such companies can deliver a steady positive cash flow from their operations and pay our regular dividends, there should be good investment value and investors' interest in the better managed ones, which could likely attract M&A interests as the overall plastic components industry consolidates further over time.

[Townboy]

The latest quarterly financial results (Q2 FY2013).
http://infopub.sgx.com/FileOpen/Fu_Yu_fi...eID=252416

A poor Q2 and gross profit margin dropped from Q1 of ~10% to ~6.5%. If not for the gain of disposal of current assent, the group would have made a loss for reported quarter. Financial liability is merely $0.2mil and cash and equivalent standing at ~$64mil. No dividend for reported quarter. Good candidate for take over?

- vested

[SLC81]

FU YU sold of some asset and will share production with Flextronic and this will improve the bottom line of the Malaysian unit. I believe this will help to turn around and Fu YU may start to pay dividend again (The last in 2006). NET Cash level now have gone up to 7.2 Cents/Share.

[SLC81]

Market went down but Fu Yu did not. In fact, it has gone up 5% with rather high volume in the last few days.
Group Net cash is 8.7 Cents. Could be some smart people are loading up the stock.

I am vested