Hai Leck

[cyclone]

Profit Guidance

The Board of Directors of Hai Leck Holdings Limited  would like to advise the shareholders that the Group is expected to record a loss for the first quarter ended 30 September 2019 (“1Q2020”).

The expected loss in 1Q2020 was mainly attributable to lower revenue during the quarter as a result of market conditions.

Further details of the Group’s financial performance will be disclosed when the Company announces its unaudited financial results for the 1Q2020 on or around 13 November 2019.

[bchang]

Hai Leck has a not so well known call centre business segment (under Tele-centre Services Pte Ltd) which has recorded huge growth in FY ending June 2020, with segment revenues increasing from S$7mil to S$50mil and segment earnings increasing from S$1mil to S$7mil.

Disclosure from the company in the annual report has been highly disappointing and does not provide any details. Maybe this big increase have something do with call centre outsourcing by government agencies during the covid-19 period.

[outgoing]

From the government procurement record, Hai Leck's call centre subsidiary, Tele-Centre Services has secured tenders since 2015, and the latest tender from People's Association for a S$5.3mil contract.

Source: https://data.gov.sg/dataset/government-procurement

[¯|_(ツ)_/¯]

Hai Leck @ 54cents

Thank you valuebuddies for sharing such a wonderful stock.

Bonus/dividend since 2021:

• Jun 2021 - 1:10 bonus
  
• Nov 2021 - 6 cents
  
• Feb 2022 - 7 cents
  
• Nov 2023 - 2 cents
  

This morning announced 55cents acquisition by scheme of arrangment:
https://links.sgx.com/FileOpen/Joint%20A...eID=827444



Gratitude!

[weijian]

Hai Leck IPO-ed in 2008 at 26cents, underwent a 2-to-1 share consolidation, 2 warrant issues and a 10:1 bonus issue.

- A shareholder with 1000shares (cost of 260sgd) has received total 250sgd dividends to-date and at current time, will own ((1000/2)*1.1)=550 shares.
- Ignoring the effect of warrants, the sales price would be 550*0.55=302.5sgd and inclusive of 250sgd dividends, would have a total cashflow of 552.5sgd, a 113% gain over approximately 16years or an annualized return ~5.23%. This is probably a relatively below-average return, which nonetheless has beaten post GFC/pre covid19 inflation.

[¯|_(ツ)_/¯]

just sharing my experience: brought all my stocks from beginning 2021 till end 2022. After taken into consideration of 1:10 bonus and 3 dividends, annual compound interest is about 5.5%.

Although nothing to shout about, I am very grateful of this offer.

You know - a lot of time, the offerer always cited providing a chance for shareholders to liquidate their shares.

Well, for me, this is exactly the right reasons for this offer.

I couldn't believe my eyes when I saw the halt annoucement in SGX.

Half expecting a delist offer and half expecting massive restructuring exercise.  

And, my wish come true with a great delist offer at 5.5% annual return.

Enjoy:


Gratitude!

[weijian]

Hi ¯|_(ツ)_/¯,

Just to clarify further, I am not belittling any sort of returns. It is quite interesting that your last 3year annualized return is quite close to the last 16year's that I calculated above. However looking at Hai Leck's share price history, there were definitely times when investors got in at prices above IPO or covid-19 lows - their returns would have comfortably lost to inflation.

And just one more food for thought - without the catalyst from privatization, what would have been the returns? Is a "fair and reasonable" buyout price an essential part of getting returns that can comfortably beat inflation? The returns is the report card (output) but it is understanding the journey (inputs) that may allow us to improve on our (future) output.

P.S. it is probably too early to be tabulating returns because the entire privatization exercise has just started. Based on the multiple hurdles (getting 75%, IFA opinion), room for plenty of subsequent action.

[¯|_(ツ)_/¯]

@wj, as usual, thank you and very grateful for kind sharing by all our valuebuddies and I learn a lot from everyone. 

I am not an analyst and I also do not have a lot of time / experience in analysing stocks.  Basically, I practice what WB said. Something like this: I don't need to know the weight of a person - to know that he is heavy. All I need to do is to take a look and I know that "he is heavy".

Because of this, a lot of my market operation does not require/rely on a lot of (detailed/complex) calculation but just some generic ratios and historical trends.  Sometime, a good dividend records would help but not essential.

Back to HL.
Obviously, there is a questions of whether the offered price is fair and whether it make sense to accept the offer etc. 

But for me, accepting offer from HL is no-brainer. (and I'm grateful of HL for giving me such an opportunity to exit - just to be clear on my stands).

I want you to imagine that you're a top 20 shareholder of HL (I'm not saying I am but I might  ).

To be HL is a value stock with extremely illiquid trading volume.

I must confess that it's price was so bad that for once, I had tuned my buying criteria to avoid illiquid shares - I'm not going to buy large quantity of illiquid stocks any more - chop off my hand if I did that again.  Having says that, small small amount should still be fine 

With my confession, now you know why I was so desecrate to get out? 

Frankly speaking, with 5.5% annual compound gain over last 4 years,  nothing to shout about, but seriously, I am not complaining.

In conclusion, I brought HL because it met my entry criteria. Although I'm disappointed with it's result, it's the illiquid trading volume that I am really concern.  An offer which allow me to exit with a bit of profits made me a very happy ex-owner of HL.

Relax and enjoy the present:


Gratitude!