Tat Seng Packaging

[pianist]

11. Dividend for 1H result announced today
(a) Current Financial Period Reported On
Any dividend recommended for the current financial period reported on? Yes
Name of Dividend Interim Ordinary
Dividend Type Cash; Tax exempt (1-tier) dividend
Dividend Amount Per Share S$0.01 per ordinary share
Tax Rate Exempt (1-tier)

[propertyinvestor]

Very good news for Hanwell

[pianist]

Very good news for Hanwell

hanwell? what is that?
and why good news?

[karlmarx]

Hanwell was psc; it has been renamed. Hanwell is the largest shareholder of tat Seng.

[propertyinvestor]

More reasons to buy Hanwell

There are the largest shareholder for both Intraco and Tat Seng

[dydx]

Tat Seng has just released a set of very good FY13 (ended 31Dec13) full-year results…..
http://infopub.sgx.com/FileOpen/Full_Yea...eID=275633
and a $0.01/share Final dividend.

Including the $0.01/share Interim dividend paid on 16Sep13, Tat Seng is paying out a total of $0.02/share in dividends for FY13.

Based on the latest NAV/share of $0.5101, Tat Seng's last done share price of $0.265 (on 2Feb14) appears grossly underpriced.

[valuebuddies]

Another fabulous set of results, with revenue and NPAT both up by 11.8% and 44.5% respectively. Gross margin improved to 20% versus 18.6% for 1H2013. Declared interim dividend at 1c, same as last year.

http://infopub.sgx.com/FileOpen/TS_Resul...eID=308959

Although Singapore's manufacturing sector has experienced slow growth in 1H2014, we already have on-going efforts in consolidating the business operation in Singapore which will bring in substantial cost savings in the second half of year 2014.

With rising business costs and intense market competition in China posing as challenges to the Group, the Group will adopt appropriate measures to drive down the costs and improve the China operations.

With China government impose the most stringent pollution control rules, we expect some small customers will succumb to environmental pressure by either closing down or relocate. We will mitigate this impact by constantly developing new customers.

Barring any unforseen circumstances, we are cautiously optimistic of the performance for our China and Singapore operations in 2H2014.

The NAV of 51.24c and EPS of 2.94c translate into 0.68 PTB and 5.95 PE based on the last closing price of 35c.

[ vested ]

[dydx]

What is the fair value of Tat Seng's entire business?

Considering Tat Seng Group now owns and operates a total of 6 factories (5 in PRC; 1 in Singapore) manufacturing corrugated paper packaging products with a total annual revenue base running in excess of $220.0m, is a fair value of $100.0m - translating to $0.636/share based on the latest 157.2m outstanding issued shares - too far fetched?

[shn]

Free cash flow for the last few years were poor, partially due to the setting up of the 67% owned Tianjin Dansun in January 2012. Tianjin Dansun commenced operation in the first quarter of 2013.

Will the free cash flow improve now that investment in Dansun has been completed or almost completed? From the following statement in 1H14 result, Tianjin Dansun appears to be still in the process of building its customer base.

"The higher revenue was mainly attributed to the overall growth for China operations especially from
Nantong Tat Seng Packaging Co. Ltd ("Nantong Tat Seng"), Nantong Hengcheng Paper Industry Co. Ltd ("Nantong Hengcheng") and Hefei Dansun Packaging Co. Ltd ("Hefei Dansun").

[valuebuddies]

Sometime I am pondering on whether Mr. Market is right....

Tat Seng just announced its Q4 cum FY2014 results: http://infopub.sgx.com/FileOpen/TS_FY201...eID=336612

Though profit is lower than last year, we still see a PE of less than 6, PB of 0.65 and dividend yield exceeding 5%. And moreover debts have been on steady reducing trend.

So who is right who is wrong? We will review it again 6-months later.

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