Powermatic Data Systems
Agree. MChem is super strong. RS would be a better buy - exactly like what you says, the biz was not impacted but it's share price zoom up and now zoom down. Will buy some soon. Thank you.
This time round, will hold for 10 - 20 years. Gratitude!  
08-07-2023, 05:50 PM
Good move ??
Main biz is the wireless segment .... ----------------- PROPOSED REDEVELOPMENT OF EXISTING INVESTMENT PROPERTY https://links.sgx.com/FileOpen/PDS-Propo...eID=764574 "...Under the Proposed Redevelopment, the Company will undertake demolition, construction and redevelopment of the Property into an 8-storey multiple-user industrial development for food production (“Redeveloped Property”), with a view to selling the units of the Redeveloped Property to third party buyers, upon completion of the Proposed Redevelopment.... ...As mentioned in Section 2.1 above, the Property is currently being held by the Group mainly as an investment property.... The Wireless Business is the key driver and contributes substantially to the Group’s revenue and profitability...." 
hi dreamybear,
More details has been provided in the circular for the EGM to seek shareholders's approval for the redevelopment. https://links.sgx.com/FileOpen/PMD-Circu...eID=782091 With more details, it is able to shine more light: (1) Back in 2018 when the property was peddled for sale for 35mil, there were no takers. The circular has revealed there was an offer but it was not accepted. Nonetheless, when, who and how much the offer was, was not revealed. (2) Redevelopment of existing property (61k sqft) at B1 industrial usage will increase to ~70k sqft. A few examples of food production freehold strata unit sales were given in the circular - FoodVision@Mandai, FoodFab@Mandai, FoodConcept@Pandan (all 3 are B2 Industrial) and Mactaggart Foodlink (B1 Industrial). (3) B2 Industrial has wider usage and hence selling for more than B1 Industrial. Estimation of gross proceeds (based on current prices): If kept at B1 Industrial: - Based on Mactaggart Foodlink's asking prices on commercialguru --> we are seeing ~2700sqft (median size) + 3.4mil median asking price. - 70k sqft will yield = (70000/2700) = 25units*3.4mil = 85mil gross proceeds - Assume 3% frictional costs, 0.97*85mil/35.8mil shares = 2.30sgd/share If converted to B2 Industrial: - Based on circular's transacted prices for FoodVision@Mandai, FoodFab@Mandai, FoodConcept@Pandan --> we are seeing ~2000sqft (median size) + 3.2mil median sales price. - 70k sqft will yield = (70000/2000)=35units*3.2mil = 112mil gross proceeds - Assume 3% frictional costs, 0.97*112mil/35.8mil shares = 3sgd/share So despite the above rudimentary calculations, it is quite clear sticking to B1 Industrial is probably not worth the trouble? The value accretion is getting the approval and redevelop it into a B2 Industrial property. (4) Chairman Chen is trying his luck at been a developer now. He could have sold it to Lian Beng to save some trouble (in return for less potential profit). Personally I have mixed feelings about it but you can't deny a 76year old's passion, isn't it?  (5) Mactaggart Foodlink (former Khong Guan Industrial Building) was developed by SLB Development (subsidiary of Lian Beng) and looks to be very similar in terms of size and location to 7/9 Harrison Road. So here are some details of their sales progress: SLB has also launched Mactaggart Foodlink, an industrial development project, in May 2018. Sales status of Mactaggart Foodlink is 60.7% as at 30 June 2018. Sales Status as of 31 May 2021: 100%. Project Status: TOP on 30 March 2021 From The Edgeprop transaction data, almost all the strata units were sold by end 2019. So one could cautiously be optimistic that it could be fully sold before the redevelopment TOP in ~2years after it starts construction. https://www.edgeprop.sg/industrial/mactaggart-foodlink 
I doubt there will be much proft realised from this project and returned to shareholders other than get new building with higher value which can be milked for ongoing rental cashflows. Unlikely they will sell all the units (its freehold land!!)
Main aim is probably to find something to make use of the increasing cash stash so they can retain that in the company rather than pay it out? remember they tried some weird buyback of the building or something couple years back by creating a company fully owned by boss? anyone attend the recent AGM/EGM on 25/1 about the project? is the result to go ahead?
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
Hi BlueKelah,
Welcome back. I did not attend the EGM but it has been passed based on the polling results notice lodged with SGX. Retain some units? - Below is an excerption from the circular dated 3rd Jan 2024: While the Company plans to sell the units of the Redeveloped Property to buyers on completion of the Proposed Redevelopment, there is no certainty or assurance that the Company will be able to successfully sell all the units in the Redeveloped Property in a timely manner, or at all. - The above language seems to suggest that on a company basis, they intend to sell all the units. However, we do not disagree that freehold strata units are really desirable in Spore. So, don't be surprised if the EDs buy some of the units themselves when the sales are launched. After all, they had the intention to provide the cash alternative in the last attempt to dispose the property of the company's books: https://www.valuebuddies.com/thread-5217...#pid164525 - OPMIs should probably hope they buy some themselves. And the more, the merrier! Then they are more incentivized to distribute the sales proceeds as dividends to cover their cost. After all, they are probably paying a 10-20% down payment for the unit while loaning the rest from the bank. Assume they declare a cash dividend from all the proceeds of 1 unit, they get ~63% of the cash. So net-net they get to cash out ~30-40% of cost while still owning the property via OPM (other people's money). More information on property development - Yours truly was 1 of those who raised some questions in an attempt to answer some of my earlier questions posted on VB.com. COMPANY'S RESPONSE TO QUESTIONS RAISED BY SHAREHOLDERS IN RELATION TO THE CIRCULAR DATED 3 JANUARY 2024 https://links.sgx.com/FileOpen/PDS-Respo...eID=783245 Using the redevelopment as a way to retain the cash? - This cannot be ruled out, although judging from past actions the probability is low. - We have to decide whether to trust the jockey OR to suspect it.
Sometimes, you just can't help but chuckle at Dr Chen Mun's frankness.
Is the share price really too high? Or is it too high for his liking to use the cash for purchase? After all, buy high and you award high --> it is only going to affect the folks whom gets the share award (and based on circular, he is not excluded from eligibility). OR is he hoping to buy back shares only when he gets 2016 prices, which was the last time he bought them back. And in 2016, the prices were ~60-70% below current levels. THE PROPOSED ADOPTION OF THE POWERMATIC DATA SYSTEMS EXECUTIVES’ SHARE AWARD SCHEME Question: Will the company embark in share buy back to increase the number of treasury shares? Some companies purchase shares in the market for the share award. Reponses: Chairman informed that the treasury shares for the share award arose from share buybacks that were previously carried out by the Company. The Company had held these treasury shares for quite some time, so Management decided to award these shares to the executives as incentives from time to time. Management will look into the share buy back when the Company’s share price is low as the current share price is too high. https://links.sgx.com/FileOpen/PMD-EGM_M...eID=787484
Choo Chiang is an electrical products distributor and they set up their properties division only in 2016. It is acquiring 5 leasehold (36years remaining) B2 strata units for food production, that will only TOP 4 years from now.
I reckon Powermatic's eventual freehold strata units will be selling like hot cakes to those who have the means. After all, there is no ABSD (so far) for such industrial/commercial properties! ACQUISITION OF 5 UNITS OF COMMERCIAL PROPERTIES AT FOOD ASCENT LOCATED AT 45 TUAS SOUTH AVENUE 1, SINGAPORE 639427 BY CHOO CHIANG PROPERTIES The board of directors (“Directors”) of Choo Chiang Holdings Ltd. (the “Company” and together with its subsidiaries, the “Group”), wishes to announce that its wholly-owned subsidiary, Choo Chiang Properties Pte. Ltd. (“Choo Chiang Properties”) had exercised an option to acquire 5 commercial units located at 45 Tuas South Ave 1, Singapore 639427, known as “Food Ascent” (the “Properties”) for a consideration of S$5.721 million (“Consideration”) (“Proposed Acquisition”). https://links.sgx.com/FileOpen/CCH_Annou...eID=789991 (04-01-2024, 04:22 PM)weijian Wrote: hi dreamybear, Powermatic Data's share price has had some abnormal price movements recently. So I guess it would be apt to google for whether the pricing at 7/9 Harrison Rd re-development is out. And it looks like some early indicative pricing is out. https://www.allaboutfnb.sg/freehold-food...-tai-seng/ https://www.commercialguru.com.sg/listin...g-25108918 https://harrisonfood.sg/overview There will be a total of 42units (exclude the canteen) ranging from 1,709 square feet to 2,490 square feet. So, if we were to assume the cheapest price tags at 1800psf at 1709sqft over 42units at 3% frictional costs (agency/marketing), translates to (1800*1709*42)*0.97 = 125mil (or 3.50sgd per share) "Cost" of the redevelopment = FV of property before development + construction costs = 48.3mil + 28mil = 76mil The redevelopment will probably translates to at least 125-76 = 49mil or 1.37sgd per share of value creation. My questioning in early 2024 just shows my gross ignorance.
Once again, Dr Chen Mun is been really "frank" with his answers. Somehow, he gives a slightly different vibe compared to the other folks.
RESPONSE TO QUESTIONS FROM SHAREHOLDERS Management views the current uptick in the share price is due to both the monetisation of the investment property and consistent performance of the wireless connectivity segment. Between the two factors, we felt that the latter hold greater sway given the attractiveness of the wireless connectivity market globally. Segregation of the two-business segments was driven by the differences in the valuation matrix (net tangible assets vs price earnings ratio) and risk (financial and business). Market would be allowed to evaluate and value the wireless connectivity segment once the monetisation is completed. Should the wireless connectivity segment, which will be the sole business, continue with growth and profitability we believe the market (both shareholders and investors) will accord the Group the appropriate price-earnings multiple and liquidity. https://links.sgx.com/FileOpen/PMD-Respo...eID=811223
08-11-2024, 07:25 PM
In essence, I interpret as in order for wireless revenue to be great again, it depends on (i) existing customers' orders recovery (ii) being able to land new customers.
------------------ https://links.sgx.com/FileOpen/PMD-1HFY2...eID=824569 " For the 6 months ended 30 September 2024 (1HFY2025) the Group achieved revenue of $7.5 million compared to $17.6 million for the 6 months ending 30 September 2023 (1FHY2024). The significant decrease in revenue of 58% is attributed to: 1. Between 2020 and 2022, acute shortages of raw materials especially microchips prompted many companies to aggressively accumulate inventories and expedite orders. Major microchip suppliers were less willing to accept order cancellations and orders were fulfilled on average for more than 15 months. As shortages began to ease in early 2023, the need to reduce inventory levels – avoiding obsolescence and the cost of holding inventories associated with high interest rates –prompted many, including our customers, to begin to reduce or defer orders; and 2. Although the Group is in a position to offer Wi-Fi-7 solutions, our customers reduced orders due to both high inventory levels (Wi-Fi-6 products) and needed time to transit to Wi-Fi 7. ...................... Beginning in early 2023, we proactively reached out to a broader range of customers, including those outside our traditional industries. We identified opportunities in robotics, warehousing, and healthcare, where our offerings can add value and enhance the performance of specialized equipment and services. ....... The development was opened for sale on 25 October 2024. Based on the bookings received to date, we have sold approximately 23% of the development. " |
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