TeckWah

[john]

Following the announcement of teckwah's third quarter financial result, I immediately contacted its investor relations manager. From their reply, I am confident with its 4th quarter prospects, my analysis below.

1. Teckwah Pharmapack Malaysia should see an increase in sales and profit in the 4th quarter due to outsourcing from US pharmaceutical giants.

2. Rental cost savings of $1.75 million per quarter to kick in from the 4th quarter(due to relocation to Pixel red).

3. Maiden revenue/profit contribution from Pixel Red(Print Media Hub).

http://www.sim.edu.sg/News/NewsClippings...%20box.pdf

MD Thomas Chua:"I am a visionary person and Teckwah was small when I took charge in 1979. I had the passion to build Teckwah’s print and packaging business to make it a big fish in a small pond."

I'm attracted by Mr Chua's apparent dynamism & cheerleading but Teckwah don't seems letargic again 3rd quarter repeating as per 2Q 'Stiff competition continues to pressure pricing, rising op cost would further squeeze margins..'. Anybody met Mr Chua and is he really so compelling? and his staff right behind and performing as he wanted? Trying to vest in this coy but now not sure seeing its 3Q unimpressive

[Almightygod]

I'm attracted by Mr Chua's apparent dynamism & cheerleading but Teckwah don't seems letargic again 3rd quarter repeating as per 2Q 'Stiff competition continues to pressure pricing, rising op cost would further squeeze margins..'. Anybody met Mr Chua and is he really so compelling? and his staff right behind and performing as he wanted? Trying to vest in this coy but now not sure seeing its 3Q unimpressive

Successful investing requires a very patient temperament. We are seeing light at the end of the tunnel, be patient. On top of that, we will be rewarded with our annual dividend very soon, cheers!

[greengiraffe]

TeckWah is a property play... the core business of printing is a front that don't make much $... and it is only here in Singapore... now spread over to Iskandar...

Not Vested
GG

I'm attracted by Mr Chua's apparent dynamism & cheerleading but Teckwah don't seems letargic again 3rd quarter repeating as per 2Q 'Stiff competition continues to pressure pricing, rising op cost would further squeeze margins..'. Anybody met Mr Chua and is he really so compelling? and his staff right behind and performing as he wanted? Trying to vest in this coy but now not sure seeing its 3Q unimpressive

Successful investing requires a very patient temperament. We are seeing light at the end of the tunnel, be patient. On top of that, we will be rewarded with our annual dividend very soon, cheers!

[Almightygod]

TeckWah is a property play... the core business of printing is a front that don't make much $... and it is only here in Singapore... now spread over to Iskandar...

Not Vested
GG

I beg to differ, Teckwah had successfully evolved into a printing, visual communications solutions and logistics player.

[greengiraffe]

TeckWah is a property play... the core business of printing is a front that don't make much $... and it is only here in Singapore... now spread over to Iskandar...

Not Vested
GG

I beg to differ, Teckwah had successfully evolved into a printing, visual communications solutions and logistics player.

They make a lot of $ selling to REITs and then got Pixel Red that is way undervalued to Mapletree's high bid for a lesser tenure site close by.

They have also taken a view on Iskandar and got in early.

There is no doubt in its core competence in its traditional business but earnings there is constantly under pressure due to rapid changes...

You go crunch numbers and will realise this... I m not trying to convince you... u see it with your own eyes.

They are survivors but really one has to look at the asset view point in order to feel comfortable investing in Teckwah cause earnings stream is volatile and margins unpredictable with long term downtrend.

GG

[Almightygod]

They make a lot of $ selling to REITs and then got Pixel Red that is way undervalued to Mapletree's high bid for a lesser tenure site close by.

They have also taken a view on Iskandar and got in early.

There is no doubt in its core competence in its traditional business but earnings there is constantly under pressure due to rapid changes...

You go crunch numbers and will realise this... I m not trying to convince you... u see it with your own eyes.

They are survivors but really one has to look at the asset view point in order to feel comfortable investing in Teckwah cause earnings stream is volatile and margins unpredictable with long term downtrend.

GG

Be patient, their expansion plan should bear fruit in the 4th quarter. Pixel red and their iskandar factories are no white elephant. I agree with you that Teckwah has got very rich assets. Cheers!

[greengiraffe]

They make a lot of $ selling to REITs and then got Pixel Red that is way undervalued to Mapletree's high bid for a lesser tenure site close by.

They have also taken a view on Iskandar and got in early.

There is no doubt in its core competence in its traditional business but earnings there is constantly under pressure due to rapid changes...

You go crunch numbers and will realise this... I m not trying to convince you... u see it with your own eyes.

They are survivors but really one has to look at the asset view point in order to feel comfortable investing in Teckwah cause earnings stream is volatile and margins unpredictable with long term downtrend.

GG

Be patient, their expansion plan should bear fruit in the 4th quarter.

This is their survival kit in a ever pressurising operating environment. The investment moat of the company has yet to change...

Always patient and always lazy...

GG

[CY09]

Hi all,

Please don't compare Mapletree's recent bid against Teckwah's directly. Mapletree's project has an additional White 1.0 component, which means it can develop approx 13,000 sq of any of the MP zoning: Industrial, commercial or residential units; it is likely to be commercial ( the highest value among the MP zoning). Therefore, if one is to value, one has to net off the retail space Mapletree can rent out.

No doubt Teckwah's land bid in 2011 is undervalued but the gap in valuation is not as big as what many members may think (due to the white 1.0 [will be 1.1 if Mapletree can use the green incentive]. This has to be factored in the valuation. I personally prefer to value Pixel Red in accordance to the s$6.0M annual PAT gain from rental saving and leasing of extra space across the next 58 years of tenure; at say discount rate of 7%?

[Almightygod]

This is their survival kit in a ever pressurising operating environment. The investment moat of the company has yet to change...

Always patient and always lazy...

GG

No worries, MD Thomas Chua has got many business "connections".

[greengiraffe]

This is their survival kit in a ever pressurising operating environment. The investment moat of the company has yet to change...

Always patient and always lazy...

GG

No worries, MD Thomas Chua has got many business "connections".

Ho Bee Chua Thiam Poh is a major one...