Winas (formerly: Sinwa Limited)

[dydx]

Sinwa closed today (15Apr13) up another $0.014 and at the day's high of $0.183, with 890 lots done.

Having cleared the non-performing vessel assets and the loss-making engineering business, Sinwa is now debt-free and has returned to its core well-established and profitable ship supplies business. Since controlling shareholder Mike Sim - now in his 60's - is no longer on the BOD or actively running the business, I wonder whether he would be prepared to sell his stake if a serious buyer comes knocking? I suppose any deal and the GO resulted from it would have to take reference from the latest NAV/share of approx. $0.28. Or am I just dreaming again?

[cif5000]

Sinwa closed today (15Apr13) up another $0.014 and at the day's high of $0.183, with 890 lots done.

Having cleared the non-performing vessel assets and the loss-making engineering business, Sinwa is now debt-free and has returned to its core well-established and profitable ship supplies business. Since controlling shareholder Mike Sim - now in his 60's - is no longer on the BOD or actively running the business, I wonder whether he would be prepared to sell his stake if a serious buyer comes knocking? I suppose any deal and the GO resulted from it would have to take reference from the latest NAV/share of approx. $0.28. Or am I just dreaming again?

I think he will. In fact, he had entered an agreement previously to sell his stake but was later abandoned. Using the previous minimum price and factoring in the rights shares, the transaction if any should be in the region of ~$0.30. However, such transaction may not trigger a GO. Let's see...

[pianist]

like that we must all hold our sinwa shares tight until 0.28

[Ben]

Sinwa closed today (15Apr13) up another $0.014 and at the day's high of $0.183, with 890 lots done.

Having cleared the non-performing vessel assets and the loss-making engineering business, Sinwa is now debt-free and has returned to its core well-established and profitable ship supplies business. Since controlling shareholder Mike Sim - now in his 60's - is no longer on the BOD or actively running the business, I wonder whether he would be prepared to sell his stake if a serious buyer comes knocking? I suppose any deal and the GO resulted from it would have to take reference from the latest NAV/share of approx. $0.28. Or am I just dreaming again?

I think he will. In fact, he had entered an agreement previously to sell his stake but was later abandoned. Using the previous minimum price and factoring in the rights shares, the transaction if any should be in the region of ~$0.30. However, such transaction may not trigger a GO. Let's see...

Are you referring to the proposed sales of 58M shares to Sinohit in 2010, but was later cancelled as Sinohit did not make the initial payment?

I am also of the view that Mike Sim will sell if there is a serious offer. He is almost 70 years old, and I am not aware that any of his children or relatives is working in the company. Anyone can confirm? He shares holding in the company is slightly more than 40%, so any buyer buying over his entire stake will have to make a GO.

I am also dreaming.

[ngcheeki]

Mr Sim Li-Meng Timothy is the son of Mike Sim!!

"Mr Sim is also the controlling shareholder of the Company through Evenstar Investments Pte.
Ltd. He is also the father of Mr Sim Li-Meng Timothy, an executive director of the Company."

http://www.finanznachrichten.de/pdf/2012...9324.1.pdf

[Ben]

Q1 profit of $2,657K is, IMHO, very impressive. Even if stripping off the following one-off items:

1. Loss from discontinued operations $714
2. Foreign exchange gain $851K
3. Gain on disposal of subsidiaries $133K

Its normalize profit is $2,387K. This is still very satisfactory.

With the disposal of its non-core businesses, Sinwa is now a simple enough business to understand and its results easier to predict. As a rough estimation, we can take Q1 normalize profit and multiply by 4 to predict its FY earning. This work out to $9,548K, which is much higher than the usual $6M a year contribution from this segment.

At $9,548K profit, PE is less than 6X at current price.

Current NAV is almost 30c, and looks set to increase in following quarters. Current price is just 55% of NAV.

The company has cash on hand of near to $40M, thanks to the disposal of its liftboat and AMS Group. It is reasonable to assume that future dividends payment is secured. Assuming if we are seeking a 5% yield, based on current price of 16.3c, DPS should be 0.8c. Paying out 0.8c is only going to cost the company $2.68M, a small amount compared to the $40M cash on hand.

IMHO, this stock is grossly undervalued.

[Ben]

Sinwa stock price has hovered around 16 cents since it went XD on 6 May. It breaks above 17 cents on 28 June on high volume of 1.05M shares traded. It then went on to break above 18 cents just five days later on 5 Jul. It should be noted that its price closed on day high for each of the last 5 trading days. Last traded price was 18.5 cents, a 16% increased as compared to end June. More people are beginning to take notice of this little undervalued gem.

Those who collected the 1.5 cents special dividends in May and still held on to the shares should be very happy

[portuser]

Q1 profit of $2,657K is, IMHO, very impressive. Even if stripping off the following one-off items:

1. Loss from discontinued operations $714
2. Foreign exchange gain $851K
3. Gain on disposal of subsidiaries $133K

Its normalize profit is $2,387K. This is still very satisfactory.

With the disposal of its non-core businesses, Sinwa is now a simple enough business to understand and its results easier to predict. As a rough estimation, we can take Q1 normalize profit and multiply by 4 to predict its FY earning. This work out to $9,548K, which is much higher than the usual $6M a year contribution from this segment.

At $9,548K profit, PE is less than 6X at current price.

Current NAV is almost 30c, and looks set to increase in following quarters. Current price is just 55% of NAV.

The company has cash on hand of near to $40M, thanks to the disposal of its liftboat and AMS Group. It is reasonable to assume that future dividends payment is secured. Assuming if we are seeking a 5% yield, based on current price of 16.3c, DPS should be 0.8c. Paying out 0.8c is only going to cost the company $2.68M, a small amount compared to the $40M cash on hand.

IMHO, this stock is grossly undervalued.

Is Sinwa still saddled with another vessel?
Is it a drag on profitabilty?

[Bibi]

The founder bought 168 lots on 16 and 57 lots on 17July at 20+ to 21.5cts. Looks like he might want to delist it at a fairly cheap price.

[cif5000]

The founder bought 168 lots on 16 and 57 lots on 17July at 20+ to 21.5cts. Looks like he might want to delist it at a fairly cheap price.

I would be more convinced if he had bought on that few days of high volume price run up before 16 Jul. His purchases looked more like reigniting a dying flame.