Huan Hsin Holdings

[btig]

Another under valued counter.....

NTA at 26.23 cents but trading at 2.9 cents.

Huan Hsin just sold a piece of land, book valued at S$352,000 for S$26,176,984, profiting S$16,980,014 or 4.24 cents per share, double its current share price.

Huan Hsin is sitting on rich land bank. It still has about land use rights of about S$12M at book value, or 3 cents per share. And this has not taken into account potential land prices upward revaluation since land prices in China as sky-rocketed over the years.

Huan Hsin has been in a restructuring mode since it was put on SGX watchlist in Mar 2014. It used to be a market darling along with the likes of Creative, Amtek, Venture, etc.

The Company has been selling non-core subsidiaries and asset, including land and office buildings, to reduce cost.

This would be the greatest turnaround play for 2014-2015.

[CityFarmer]

I renamed the thread, to be consistent with the rest.

FYI, The company is in SGX watch-list, since 5 Mar 2014

Regards
Moderator

[safetyfirst]

High debt on its balance sheet, later the trade receivables turn out to be like xpress's, it may be not be as undervalued as it seems

[btig]

Huan Hsin is not your typical fly-by-night company. It was listed since 1997.

Yes, it has debt, otherwise it won't be trading at such distressed price.

But it also has large tracts of lands and factories/buildings in Shanghai, Suzhou, Shandong, Chongqing, Taipei and Malaysia build up since 1980 and booked in its accounts at book value. I will give you only a penny to guess if such land/factories/buildings have appreciated....

Company is finally en-route to restructure and turnaround by disposing loss making businesses.

But only time will tell.

[CityFarmer]

Huan Hsin is not your typical fly-by-night company. It was listed since 1997.

Yes, it has debt, otherwise it won't be trading at such distressed price.

But it also has large tracts of lands and factories/buildings in Shanghai, Suzhou, Shandong, Chongqing, Taipei and Malaysia build up since 1980 and booked in its accounts at book value. I will give you only a penny to guess if such land/factories/buildings have appreciated....

Company is finally en-route to restructure and turnaround by disposing loss making businesses.

But only time will tell.

Typically, primary prerequisite of a turn-around company, is low debt, otherwise the story is pretty weak.

I know little on the company, may need to spend time to take a look, before further comment

[rainmaker]

Huan Hsin is not your typical fly-by-night company. It was listed since 1997.

Yes, it has debt, otherwise it won't be trading at such distressed price.

But it also has large tracts of lands and factories/buildings in Shanghai, Suzhou, Shandong, Chongqing, Taipei and Malaysia build up since 1980 and booked in its accounts at book value. I will give you only a penny to guess if such land/factories/buildings have appreciated....

Company is finally en-route to restructure and turnaround by disposing loss making businesses.

But only time will tell.

Typically, primary prerequisite of a turn-around company, is low debt, otherwise the story is pretty weak.

I know little on the company, may need to spend time to take a look, before further comment

For SGX, you need to show proof to be profitable within 2 years or be delisted. Can Huan Hsin do it? I think it is possible only when some investors pump in more $$$. Remember the Aussino case. It has a good brand name, get a "potential" investor but rejected by SGX and got delisted.

[specuvestor]

Taiwanese are very shrewd businessmen. Problem is unless they need to raise capital they are not going to share with shareholders. Companies are TSMC or Mediatek are more exceptions than the norm

This stock has acted weird up and down tech cycles since the days they make telephone cables. Personally I've given up and knowing Taiwanese i wont be surprised that they are "privatising" via the compulsory delisting route

If you are willing to last it out in the private limited arena, make sure u know how to cut deals rather than confrontational

[btig]

New substantial shareholder has called for EGM to stop asset sale by management.
A recipe for bidding war!

[btig]

http://www.huanhsin.com/english/Subsidia...ibuted.php
Click on subsidiaries to reveal property held by Huan Hsin