Winas (formerly: Sinwa Limited)

[BlueKelah]

Sinwa should be downtrend for a bit as it is a proxy to Oil and Gas.

But next quarter earnings will be boosted by the disposal of the engineering arm, since it will be recorded on 1 jan 2014

Dydx do you know the value of this disposal?

otherwise NET CASH position looks quite ok at the moment and div yield is respectable. Will vest when the NET CASH % increases.

[dydx]

Sinwa should be downtrend for a bit as it is a proxy to Oil and Gas.

But next quarter earnings will be boosted by the disposal of the engineering arm, since it will be recorded on 1 jan 2014

Dydx do you know the value of this disposal?

Based on the latest FY13 full-year results announcement (see p23/24)…..
http://infopub.sgx.com/FileOpen/Sinwa_FY...eID=283343
, the core Supply division (which draws its business from regional shipping and offshore oil & gas activities) posted a healthy 14.1% YoY increase in External Revenue to $133.39m, and an even higher 16.6% YoY increase in EBITDA to $8.438m.

We know globally, shipping activities are still suffering from over capacity and low freight rates, but the oil & gas sector remains quite positive. We know Sinwa has been investing in Australia for some years now to tap the potential business from the fast-growing offshore oil & gas sector there for its Supply division. In FY13, Revenue from Australia amounted to $31.926m (+3.5% YoY), or quite a significant 22.9% of the group total.

As the previous loss-making Engineering division was substantially sold and disengaged in FY13, going forward there should be little P&L impact from it. On the other hand, we can reasonably expect Sinwa to book an approx. $1.0m gain in Q1 (ending 31Mar14) from the sale of the vessel "GO Emerald" for USD5.5m…..
http://infopub.sgx.com/FileOpen/Sinwa_An...eID=285798 [10Mar14 announcement]
, as the sale was completed and USD4.46m received recently…..
http://infopub.sgx.com/FileOpen/Sinwa_An...eID=287312 [18Mar14 announcement]

[portuser]

Besides the $1 m gain for vessel disposal, Sinwa will receive another US $1.3 m (S$ 1.6 m) for early termination of the charter hire:

"The Total Consideration of the Proposed Disposal is US$5,500,000 (equivalent to approximately S$6,959,150, based on the exchange rate of US$1 : S$1.2653). The Total Consideration comprises US$4,200,000 for the Vessel and the balance of US$1,300,000 (the “Balance”) for early termination and settlement of the charter
hire."
(Sinwa's announcement dated 10 Mar 2014)

A good part of $ 1.6m will be recognised as other income if expenses associated with the temination are mininal:

[SLC81]

Reminder for existing share holders of the Ex Date 08/05/2014 for 1 cent divident

[SLC81]

Sinwa price went up 4.3% today (1 cent) on the down day. it happens that today is also Sinwa AGM. Would that be some happy share holders came out of the meeting and load in some more shares ?

[dydx]

Another steady quarter (Q1)…..
http://infopub.sgx.com/FileOpen/Sinwa%20...eID=296164 [Q1 result announcement]
http://infopub.sgx.com/FileOpen/Sinwa%20...eID=296165 [press release]

While the PBT and NP were bolstered by a $1.218m gain from disposal of a vessel, the overall cash operating margin of the core group businesses actually improved in Q1, backed by a 6.5% YoY increase in Rev to $36.01m. Based on the current earnings trend, Sinwa can be expected to deliver a NP of approx. $13.0m in this FY14, which will translate to an EPS of approx. $0.039 (based on the latest 336.599m outstanding issued shares). 31Mar14 Group B/S remained rock-solid, which should strengthen further upon the final settlement for the dispute on the "Nordic Energy" vessel.

[portuser]

Another steady quarter (Q1)…..
http://infopub.sgx.com/FileOpen/Sinwa%20...eID=296164 [Q1 result announcement]
http://infopub.sgx.com/FileOpen/Sinwa%20...eID=296165 [press release]

While the PBT and NP were bolstered by a $1.218m gain from disposal of a vessel, the overall cash operating margin of the core group businesses actually improved in Q1, backed by a 6.5% YoY increase in Rev to $36.01m. Based on the current earnings trend, Sinwa can be expected to deliver a NP of approx. $13.0m in this FY14, which will translate to an EPS of approx. $0.039 (based on the latest 336.599m outstanding issued shares). 31Mar14 Group B/S remained rock-solid, which should strengthen further upon the final settlement for the dispute on the "Nordic Energy" vessel.

Do you know why Sinwa's Q4 profit in 2013 was very small when there was no exceptional expense?

.....................................$ million
...................1st 9 months of 2013............2013......4Q 2013
Revenue................104.2.........................139.4.........35.2
Gross profit..............26.2..........................34.4...........8.2
Pre-tax profit..............8.1............................8.2...........0.1
Net profit...................7.1............................7.5...........0.4

The company's full-year results announcement does not provide Q4 figures, which have to be derived by subtracting 9-month figures from the full year's.

[dydx]

Do you know why Sinwa's Q4 profit in 2013 was very small when there was no exceptional expense?

I had attempted to answer a similar question in post #50. Please refer to it.

[Ben]

Do you know why Sinwa's Q4 profit in 2013 was very small when there was no exceptional expense?

I had attempted to answer a similar question in post #50. Please refer to it.

If I may add, the small profit in Q4 was mainly due to:

1. Higher provision for staff bonus due to good financial performance
2. Expenses related to share plan for directors and key executives
3. Write off of inventory

These expenses are mainly one off. The core business continue to grow and looking at the recently announced Q1 results, it seems that it is getting better.

[portuser]

Do you know why Sinwa's Q4 profit in 2013 was very small when there was no exceptional expense?

I had attempted to answer a similar question in post #50. Please refer to it.

Thank you, Dydx.
Yes, I read, in March, your post that the minimal Q4 profit could be due to "provision for performance bonus or profit-sharing for the EDs and key managers".

Sinwa's total manpower cost in 2013 was $14m, of which $2.5m was fees and remunerations for directors. Did Sinwa expense off the bonus fully in Q4, resulting in a much lower profit than those of the earlier three quartrs?

Is your projection of $13m profit for this year based on the assumption that quarterly profits will be more even this year, not forgetting that Q1 profit of $3.9m includes an exception gain of $1.2m from sale of a vessel?

Ben's point of inventory write-off in Q4 had lowered the profit in that quarter is not borne out by figures. Wirte-off was negligible, $0.3m in the first nine months and $0.28m for the full year. In fact there was a small inventory writeback in Q4.