Casa Holdings

[dydx]

Casa up $0.035, or 29.2%, and closed at $0.155 today (6Dec10). Since the company released its FY10 (ended 30Sep10) full-year results on 29Nov10 (after market closed), this counter has so far advanced a total of $0.07, or 82.4% (from $0.085 at the close of 29Nov10), in the last 5 market-days. Indeed, this is another value investor's dream coming through!

At $0.155, and based on Casa's 209.826m issued shares, market cap. now stands at $32.52m, vs. NAV/Equity (nett of MI) of $39.59m as at 30Sep10. Is Mr Market overly optimisic in his re-valuation effort in this case? Probably not.

Backed by the exceptionally strong sales of new private and public housing projects in the last 2 years till now, and the current still healthy new housing sales momentum, I think it is reasonable to expect Casa to continue to do quite well in the next 2 FYs at least. Being an old company, we can reasonably expect Casa to have quite a bit of extra value hidden in its business assets, including the agencies the company represents and its investment in the 27.39%-owned associated company Fiamma Holdings Bhd (listed in Bursa Malaysia).

[pianist]

dydx i am pleasantly surprised to just checked the internet price tonight climbed up so much to $0.155...thanks to your alert & e discussion, I pre-set buy price orders of $0.12 and $0.125 on Sat & today they were successfully filled without my knowledge until now after coming back from work. i have tried to bring up some negative points that i noted while reviewing those urls that u raised, nevertheless i also tot it was undervalued at $0.12..with its prominent clientee like allgreen properties & its good financials for eg its gross margin was over 30% though it weakened a little bit compared to the previous reporting period and its upcoming dividend is attractive..

[dydx]

Today's (28Dec10) announcement on Casa's auditors LTC contemplating to qualify the company's financial accounts - just because of KPMG, as auditors to its listed Malaysian associate Fiamma Holdings Bhd, not allowing LTC to have access to their working papers - is really quite ridiculous!.....
http://info.sgx.com/webcoranncatth.nsf/V...7000B9A5D/$file/Casa_announcement_qualified_opinion.pdf?openelement

I think Casa should seriously consider changing its auditors to KPMG or another big firm!

[pianist]

this is a worrying news to me.. esp on the fiamma holdings...

infor from malaysian side may not be reliable afterall

[dydx]

Just finished reviewing the FY10 (ended 30Sep10) AR which makes interesting reading.....
http://info.sgx.com/listprosp.nsf/6c6be9...50022b82f/$FILE/CASA%20AR%202010%20SGX.pdf

I am very much encouraged by the following para extracted from the Chairman's Statement by Chairman/CEO Lim Soo Kong.....

"Embracing the growth
The buoyant property market and upbeat spending power of consumers in the region especially
Singapore is encouraging. We will continue to focus in developing new products so as to meet
market demands. We have also instilled a performance driven culture within our Group employees
and we hope that would drive the Group in the year ahead.

We are hopeful that 2011 will be a good year for our Group."

And of course, I am looking forward to the coming $0.01/share Final dividend.

[dydx]

Casa is also proposing to a change of auditors from LTC to Nexia TS, and has issued a motivated Circular to Shareholders recommending the change for approval in the coming AGM.....
http://info.sgx.com/listprosp.nsf/bc9c2d...500226e9f/$FILE/Casa-Cir%20(2)%20CAST%20CD.pdf

Casa has also issued another Circular to Shareholders recommending the continuation of certain IPTs for approval in the coming AGM.....
http://info.sgx.com/listprosp.nsf/bc9c2d...500224e7d/$FILE/Casa-Cir%20CAST%20burnt%20in%20the%20CD.pdf
From the descriptions in the document, it is quite clear that through its 50%-owned PRC-based joint-venture - Panan Teco Electrical Appliances Co Ltd - and 2 other affiliated companies - Arda (Zhejiang) Electrical Co Ltd and Puneng Electric Co Ltd - Casa is tapping some low-cost manufactured kitchen products (e.g. free-standing cookers and hoods, etc.) for sale in PRC and exports to other countries.

[dydx]

Payment date for the $0.01/share Final dividend has been fixed on 21Feb11.....
http://info.sgx.com/webcoranncatth.nsf/V...4001301AF/$file/Casa.Notice.of.book.closure.date.pdf?openelement

Based on the larger-than-usual balance of Finished Goods inventory of $5.72m in the B/S as at 30Sep10 (see p40 of the FY10 AR).....
http://info.sgx.com/listprosp.nsf/6c6be9...%20SGX.pdf
I believe Casa's delivery/supply of goods (water heaters, gas stoves, cooker hoods, fridges, etc.) to the many new condo projects currently under construction and to the company's established retailer network (servicing the new HDB flats market and the general home renovation/upgrade market), will be brisk in the coming months. Can Casa's shareholders therefore expect a solid increase in revenue and profits in FY11 (ending 30Sep11)?

[dydx]

Just checked my bank account and noted a nice credit from Casa's $0.01/share Final dividend for FY10 (ended30Sep10). Feeling good!

[dydx]

Casa has just announced a set of very good H1 (ended 31Mar11)-FY11 results.....
http://info.sgx.com/webcoranncatth.nsf/V...C002E41EB/$file/Result.Annoucement.March.2011.final.pdf?openelement

Casa's businesses in both Singapore and Malaysia (held under 27.39%-owned listed associate Fiamma Holdings Bhd) are doing well. Based on the strong H1 numbers, Casa is poisd to deliver a NP of approx. $6.0m - may even be higher! - in FY11. Based on Casa's 209.83m outstanding issued shares, this would mean a full-year EPS of approx. $0.029. Against the last done share price of $0.11, we get a forward PER of 3.8x. This is quite obviously another grossly under-priced situation, especially when the latest per share NAV (as at 31Mar11) is already $0.1899, and Casa's has a strong B/S.

I look forward to another good Final dividend (FY10: $0.01/share).

[Thriftville]

Hey dydx, thank you very much for sharing your research on Casa holdings.
I just went to see their past performance. They have done well in the past 4 years, any idea why Casa was losing money between 2002 to 2006?