TeckWah

[BlueKelah]

Slowly creeping up in price but creeping down in net cash.

Hope the income coming in from Pixel Red will kick the EPS into high gear...

=vested==

[Almightygod]

Teckwah goes for the total package

Many traditional businesses in Singapore are finding it harder to survive amid a challenging business environment. But some have found ways to innovate and stand out from the crowd.

THERE is a lot more to staying competitive in the packaging business than simply producing boxes. Just ask Teckwah Industrial Corp.

Executive director Ng Nai Ping contends that innovation and thinking - well, out of the box - are the keys to success in a market that is becoming increasingly competitive while also facing many other challenges.

Part of that innovation comes in the form of moving towards incorporating multimedia into its packages. Its "intelligent boxes", for example, will help track buyers of the products and capture sales data.

Teckwah's information technology department has also developed an augmented reality mobile phone app for a food and beverage manufacturer. If a customer scans a package, the firm's mascot pops up on his phone - all part of a promotional contest organised by Teckwah, with cash prizes on offer.

The print and packaging industry faces shrinking orders as many manufacturers move out of Singapore.

In some sectors, the market for packaging has practically disappeared, Mr Ng said.

"Sectors like pharmaceutical and nutrition, which we started focusing on three years ago, can still survive. But for consumer goods like hairdryers, or even IT products, which can now be bought online, packages are no longer needed."

Mr Ng said the firm realised about three years ago that it could no longer continue to depend on these big manufacturers. Competition is also keen, with packaging firms from China and Malaysia fighting for customers as well. "We had to move up the value chain."

Teckwah decided to invest across the Causeway in Iskandar in order to fight the labour crunch and rising business costs here. It now has three factories there, bought in a single purchase three years ago. This is in addition to a subsidiary company in Batam set up in 1996 with three factories.

It employs more than 400 people here and about 800 overseas.

Iskandar is now its production base for high-volume printing, although Teckwah's Singapore office handles customers for the Asean region and focuses on digital printing, which has a quick turnaround time.

The trend towards multimedia also prompted it to build Pixel Red, a five-storey building in Tai Seng.

In addition to IT infrastructure, the building, which Teckwah moved into last month, has a number of small business units Teckwah hopes will be taken up by other firms it can collaborate with. "We would like advertising agents, event organisers to move in. We may even consider forming strategic partnerships with some of these companies to help them grow," said Mr Ng.

"Pixel Red is a solution for the future of the print industry, not just a production base."

It has hired a new five-man marketing and development team to back its foray into offering marketing solutions. It is also working with a consultant in Britain.

Next up could be personalised gift products - packages that "help the customer make the orders more creative, like personalising a cake box", said Mr Ng.

Teckwah's paper-based products, including packages of polyethylene terephthalate (PET) and wax paper, cater to manufacturers mainly from the IT, pharmaceutical and nutrition, consumer electronics, and food and beverage sectors.

Print and packaging accounted for 60 per cent of the company's overall revenue in the first quarter of this year. The segment's $22.8 million turnover was down 7.3 per cent from a year earlier.

Operating profit before tax of the print-related business also declined by 66.6 per cent to $500,000, which Mr Ng attributed to start-up expenses from relocating its production facilities and lower demand.

The other 40 per cent of revenue was from its logistics arm.

Mr Ng said doing business in Singapore is "never easy".

"I can enjoy good results this year, even the next, but everything could change in the third year.

"But we want to deliver good results, and have put in a lot of resources to restructure. We believe the future of the packaging business is moving in this direction."

[dydx]

Slowly creeping up in price but creeping down in net cash.

Hope the income coming in from Pixel Red will kick the EPS into high gear...

But we mustn't forget that Teckwah's operating FCF (before capex) is always positive and quite strong, that's why the company can afford to pay out 2 dividends in most years.

Apart from the additional rental income from Pixel Red - which is expected to bring in an extra some $2.0m/year given time - we mustn't also forget that after vacating from 25 Pandan Crescent, Teckwah will start saving from rental expenses to the tune of over $7.0m/year from sometime this Q3 (beginning Jul14) onwards.

[Almightygod]

http://www.businesstimes.com.sg/sites/bu...g12_13.pdf

“When I joined Teckwah, our annual turnover was just over a million and we had just over 40 staff members,” says Mr Chua of the firm that has since established itself as a forerunner in its field. In 2013, the group reported revenue of $180.2 million.

[dydx]

Teckwah's share price has been on a steady uptrend from the $0.35 level since Nov13…..
https://sg.finance.yahoo.com/q/bc?t=1y&s...1&c=%5ESTI
Against the STI, Teckwah has out-performed the overall SG blue-chip market by a very respectable 20% to-date during the same period.

If we include the $0.01/share Final dividend for FY13 paid on 16May14, total investment return since Nov13 would be $0.08/share, or in excess of 22%. More to come, I hope..

[Almightygod]

Published August 11, 2014

Nine new NMPs announced

VETERAN businessman Thomas Chua Kee Seng is among the group of nine new Nominated Members of Parliament (NMPs) who start their 21/2-year terms on Aug 26, when the president presents them their letters of appointment.

The chairman and managing director of print and packaging business Teckwah Industrial Corporation Ltd is also the president of the Singapore Chinese Chamber of Commerce and Industry (SCCCI).

He serves on the board of trustees of the Chinese Development Assistance Council, is vice-president of the Singapore Hokkien Kuay Huan and a director of Business China, a platform integrating language, economic and cultural elements to build a group of Singaporeans who are bilingual and bicultural.

[dydx]

2Q result just out together with the declaration of a $0.005/share (same as last FY's) Interim dividend…..
http://infopub.sgx.com/FileOpen/1HFY2014...eID=309524

I guess most of the positive financial impact related to Pixel Red will only be evident in later quarters..

[Almightygod]

Call made to build world-class SMEs

SCCCI president says their product and service must be world-standard

http://www.btinvest.com.sg/dailyfree/cal...-20140821/

[Almightygod]

http://btoprd.businesstimes.com.sg/sites...g12_13.pdf

“When I joined Teckwah, our annual turnover was just over a million and we had just over 40 staff members,” says Mr Chua of the firm that has since established itself as a forerunner in its field. In 2013, the group reported revenue of $180.2 million. “We see ourselves as the champion of transformative change in the print industry, and aim to attract tenants which will offer complementary and technologically advanced solutions and services in print, packaging, media, marketing and communications,” says Mr Chua.

[Almightygod]

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."