Winas (formerly: Sinwa Limited)

[Ben]

Sinwa reported a solid 1H results. Revenue increased by 13.1% and profit attributed to equity holders surged by 152%! This is despite booking a $1.4M FX loss in Q2 due to the weakening Australia dollars. The increase in revenue is coming from its core marine supply business, an indication that the industry is improving.

However, what really surprised me is the $0.02 dividends declared by the company. This is on top of the $0.015 special dividends just paid in May. The company says that this is to return the excess cash back to SH. Obviously the company is more careful and focus now after some painful lessons learnt in the past.

Those who bought earlier this year and held on to the shares will get back $0.035 from the dividends alone, which is easily more than 25% of costs. This is one ship that is worth taking.

[dydx]

This is one ship that is worth taking.

If I may add, this ship looks quite set to go full steam ahead!

[ngcheeki]

After the recent result announcement, Mike sim is hungry for more sinwa shares. There are 3 transaction announced. Is Mike Sim going to privatize sinwa?

1. Married deal/off market transaction of 960 lots @ 23.5 cents per shares
2. Purchase from open market on 15 Aug 2013 for 43 lot @ 23.5 cents and 11 lots @ 24 cents

http://infopub.sgx.com/FileOpen/FORM3_V4...eID=252814

[merxantia]

Sinwa is on a spurt today. Might be boosted by the 2 cent dividend it is offering.

[Stockerman]

NAV is only abt 27 cents. What is so good and special abt Sinwa?
Do we have profit visibility, and can track it easily?

Is it more of a B-to-B, rather than B-to-C industry? if B-to-B, specific industry knowledege would be needed => harder to track

Sinwa is on a spurt today. Might be boosted by the 2 cent dividend it is offering.

[Ben]

In a day like today, Sinwa went up by 3 cts (12.7%) on much higher volume compared to its daily average. It has also been holding well for the past few days. Is old Mike buying? I am thinking (or rather fantasising) that old Mike might want to take this firm private. At his age, and also the circumstances that led to his departure as director of the company, I think going for a GO is not really a far fetched possibility.

[SLC81]

Sinwa looks very promising :-)

[dydx]

Sinwa's FY13 (ended 31Dec13) full-year result out last evening makes very interesting reading…..
http://sinwaglobal.listedcompany.com/new...C770.1.pdf [result announcement]
http://sinwaglobal.listedcompany.com/new...FF42.1.pdf [press release]

It is a clear profit turnaround, and the latest B/S is solid together with a net cash reserve in excess of $16.0m - equivalent to $0.046/share - which should be strengthened much further when the dispute (now under arbitration) concerning 50/50 j-v Nordic International Ltd is finally settled.

A $0.01/share Final dividend declared.

[SLC81]

- which should be strengthened much further when the dispute (now under arbitration) concerning 50/50 j-v Nordic International Ltd is finally settled.

A $0.01/share Final dividend declared.

To add on what Dydx have mentioned, the 50/50 J-V Nordic International Limited owns a a seismic vessel which Sinwa wanted to sell 50% stake to Morten Innhaug and it could fetch another 16 Mils or $.046 in FY14.

[Ben]

Sinwa’s result should be viewed in conjunction with the harsh environment it is operating in. The general shipping industry is still in the doldrums, though there are signs that it has seen the worst and a slow recovery is expected to begin. On top of that, AUD depreciated sharply against SGD in 2013, resulting in a $1M FX loss in 2013. And then there is a $1M loss from discontinued operations in FY2013, which definitely will have a much lesser impact in FY2014. Despite these factors, it managed to turn in a profit of $6.4M. If Sinwa can be this profitable when the shipping industry is in its down cycle, how far can it go when the shipping industry turn around? Besides, the offshore sector is doing well now and will therefore continue to contribute positively in the next few years.

The $0.01 final dividends is a pleasantly surprise. On top of the $0.035 dividends paid in the year, Sinwa shareholders really have a bumper year. Perhaps we can look forward to another good dividends this year, especially if they can sell off NIL to Morten.