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Mun Siong Engineering
17-05-2017, 05:08 PM, (This post was last modified: 17-05-2017, 05:10 PM by coolken163.)
Post: #71
RE: Mun Siong Engineering
(17-05-2017, 05:06 PM)coolken163 Wrote:
(12-05-2017, 11:49 PM)karlmarx Wrote: While its peers such as Hai Leck and PEC have recovered from the effects of falling oil prices, Mun Siong remains in the doldrums:

http://infopub.sgx.com/FileOpen/MSE-2017...eID=453528

NPAT:
1Q17: $0.1m
4Q16: $2.4m
3Q16: ($0.4m)
2Q16: $0.3m
1Q16: $0.3m
4Q15: $2.2m
3Q15: $1.1m
2Q15: $0.2m

It could be a one off loss that MS was bullied by new staff of a key customer that impacted overall 2016 profit according to recent AGM. No long term impact and trend.

Vested

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13-02-2018, 08:23 PM,
Post: #72
RE: Mun Siong Engineering
Higher cash and dividend to end FY18. But it looks like MS may be running short of work, as revenue, receivables, and payables trend lower.

I also have reservations about the Executive Director's ability to takeover as the lead from the Executive Chairlady, in the foreseeable future.

http://infopub.sgx.com/FileOpen/MSE%20-%...eID=489015

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19-02-2018, 02:05 PM,
Post: #73
RE: Mun Siong Engineering
(13-02-2018, 08:23 PM)karlmarx Wrote: Higher cash and dividend to end FY18. But it looks like MS may be running short of work, as revenue, receivables, and payables trend lower.

I also have reservations about the Executive Director's ability to takeover as the lead from the Executive Chairlady, in the foreseeable future.

http://infopub.sgx.com/FileOpen/MSE%20-%...eID=489015

If so for your above reasons, could that be likely and easier for them to sell away MS at a premium...See how many shares mother and son have beem accumulating over these years

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19-02-2018, 04:49 PM, (This post was last modified: 19-02-2018, 05:05 PM by karlmarx.)
Post: #74
RE: Mun Siong Engineering
Whether the owners of MS are able to sell it, and to whom it sells to, depends on several considerations.

1) The bulk of MS' work involves the use of equipment such as cranes, barges, and scaffolding for construction or maintenance. These equipment are readily available in the market and easy to procure when a greater demand of work necessitates their use. The bulk of MS' work also involves the use of trained engineers and lower-skilled labour. These talents are also readily available in the market to hire as there are numerous players in this industry. Are the employees of MS especially talented and prized over and above the employees of its competitors? If not, then there is perhaps not much that MS can offer its acquirer, which the acquirer cannot get from the PPE or labour market. Therefore, I do not think it is likely that MS get acquired by any of its competitor, unless it is at a large discount to its assets.

2) MS has several competitors -- some of them listed -- offering the same or similar services in plant construction and maintenance. In this industry, the management requires deep technical knowledge to ensure the successful delivery of its services. So it is unlikely that private equity funds -- whose managers are more likely to be skilled in marketing, cost cutting, and restructuring -- will be keen in MS. It is therefore also unlikely that there will be interest from parties outside of this industry. However, it is possible that the current senior management of MS may buyout their owners. But banks are unlikely to support the huge loans required for this, unless the buyer has the backing of a party with significant clout.

3) To make a sale, the seller has to possess a product which people want, that is at a price which people think is reasonable. If MS is a great business, or possess great assets, there is no need to figure out who might be willing to buy the business; there will be plenty queuing for it. If MS is a poor business with no assets worth mentioning, then the owners can only entice people to take it -- if selling the business is the owners' wish -- by offering a discount. If the owners wish to sell, the sensible thing to do will be to wait for the industry, and therefore earnings and valuations, to recover.

Perhaps instead of a sale, it is more likely that the majority owners will buy it back for themselves. It wouldn't cost a lot, but given the challenges facing the company, I wouldn't think the chairlady is willing to pay too much for it. Then again, unless they believe that their business will dramatically improve in a sustainable manner in the future (long-term, high-value, high margin contract with oil majors), I don't see a motivation for such a move.

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20-02-2018, 08:27 PM,
Post: #75
RE: Mun Siong Engineering
I guess the 2 most relevant questions to ask would be :

1) What is the fair or intrinsic value of each Mun Siong share? That we can take some guidance from the recently released FY17 full-year result announcement, in particular the 31Dec17 B/S....
http://infopub.sgx.com/FileOpen/MSE%20-%...eID=489015
which shows the latest NAV/share at $0.1029. We should also take note of Mun Siong's huge $35.5m net cash reserve, which translates to $0.061/share of net cash. We should also bear in mind Mun Siong still has a profitable and well-established business servicing the oil majors like Shell, Exxon Mobil, with a good and long track record to match. Just based on the above, it would not be difficult to conclude by simple logic that each Mun Siong share should be worth at least its corresponding NAV/share plus a decent premium to account for business goodwill and future profits say in the next 3 years at least.

2) Would Mun Siong's business prospects and earnings improve with the eventual recovery of the O&G and petrochemicals industries?
I suppose people who have lived long enough should be as positive as me in believing that there is a fair chance for that to happen given enough time.

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23-02-2018, 05:44 PM,
Post: #76
RE: Mun Siong Engineering
(20-02-2018, 08:27 PM)dydx Wrote: I guess the 2 most relevant questions to ask would be :

1) What is the fair or intrinsic value of each Mun Siong share? That we can take some guidance from the recently released FY17 full-year result announcement, in particular the 31Dec17 B/S....
http://infopub.sgx.com/FileOpen/MSE%20-%...eID=489015
which shows the latest NAV/share at $0.1029. We should also take note of Mun Siong's huge $35.5m net cash reserve, which translates to $0.061/share of net cash. We should also bear in mind Mun Siong still has a profitable and well-established business servicing the oil majors like Shell, Exxon Mobil, with a good and long track record to match. Just based on the above, it would not be difficult to conclude by simple logic that each Mun Siong share should be worth at least its corresponding NAV/share plus a decent premium to account for business goodwill and future profits say in the next 3 years at least.

2) Would Mun Siong's business prospects and earnings improve with the eventual recovery of the O&G and petrochemicals industries?
I suppose people who have lived long enough should be as positive as me in believing that there is a fair chance for that to happen given enough time.

For this to happen, if I were the team of mother and son, I would rather GO and keep most of the fat meat and cash to myself earlier before all the solid results are released later in 2-3 years

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