CSE Global

[Nick]

DBS VICKERS PULSE OF ASIA CONFERENCE PRESENTATION MATERIAL 11 Jan 2011

http://info.sgx.com/webcoranncatth.nsf/V...4002D0DEC/$file/CSE-Pulse_of_Asia.pdf?openelement

[Musicwhiz]

Thanks Nick, had a quick glance.

It seems they included everything except the most important stuff, Balance Sheet and 5-year cash flow statement by category!

Jokes aside, will look at those separately. Too many companies, but too little time.

[Nick]

Thanks Nick, had a quick glance.

It seems they included everything except the most important stuff, Balance Sheet and 5-year cash flow statement by category!

Jokes aside, will look at those separately. Too many companies, but too little time.

Yea...time makes a fool out of all of us !

Actually, CSE did include the cash-flow statements. Slide 17 gave a 6 year summary of their operating cash-flow. Slide 18 is even better - it gave a 12 year summary of where their cash when to !

Thanks for sharing your views

[Musicwhiz]

Nick,

Thanks. I had another glance. Slide 18 is rather brief even though it's a good 10-year summary. For me, I need to see operating cash flows, investing cash flows and financing as well as the detailed breakdown. In short, the Slide 18 does not have enough financial info for me to make an informed decision.

[Nick]

Nick,

Thanks. I had another glance. Slide 18 is rather brief even though it's a good 10-year summary. For me, I need to see operating cash flows, investing cash flows and financing as well as the detailed breakdown. In short, the Slide 18 does not have enough financial info for me to make an informed decision.

Hehe...that's when we gotta dig out the Annual Reports for the past 10 years to see how things have been faring.

The figures in the Slide could have been masked by strong performances in the last 2 years. Best to be cautious. Never make an investment decision without pouring through the ARs first. Then again, you compiled a 27 page comprehensive report on SIAEC...ever considering selling it to SIAEC for it to distribute to analyst/investors in the future haha !

[Musicwhiz]

Nick, you're pretty amusing haha! I would think SIAEC is not interested in such docs, as they have a business to run. As for the analysts, they can probably come up with such a report themselves too. By the way, it's about 40 pages if you include the tables.

I will do the same report-style if I were to evaluate another company for investment, but it will just be for my own consumption (it will not be posted on my blog).

[egghead]

CSE will be releasing their FY2010 results on 21-Feb. I'm hoping for $0.045 dividend per share.

[Nick]

CSE Global reports record full year profit of $52.48 million and declares 4.00 SG cent dividend.

http://info.sgx.com/webcoranncatth.nsf/V...E001A70C1/$file/CSEmasnet-Q4FY2010.pdf?openelement

Very good set of results and it has managed to lower its net gearing to 0% due to strong free cash-flow generated from its operations in the O&G, Mining and Healthcare division.

Management expects FY 11 results to be better than FY 10 barring any unforeseen developments. The latest acquisition should be the primary driver behind profit growth over the next 2 years.

The stock (based on a share price of $1.33) is currently trading at a PER of 12.7 and with a dividend yield of 3.0%.

[egghead]

Even though the dividend declared is lower than what I hope for, I'm not too unhappy. The strengthening S$ is causing some trouble though...

[Nick]

Even though the dividend declared is lower than what I hope for, I'm not too unhappy. The strengthening S$ is causing some trouble though...

I was expecting record dividend payout too. But the Management has decided to utilize the profit to reduce its debt by $49 million thereby reducing its net gearing to 0%. I guess this is also fine with me.

Forex risk remains an issue though the overall impact was lesser than I had anticipated.