OneApex (formerly: Chew's Group)

[yeokiwi]

Need $$$ to rebuild the farms.
But, at 10x compensation, the deal is good indeed.

but as opmi said, maybe it is a typo??
$38.6 mil translates to 45.6 cts/share???

[merxantia]

Need $$$ to rebuild the farms.
But, at 10x compensation, the deal is good indeed.

but as opmi said, maybe it is a typo??
$38.6 mil translates to 45.6 cts/share???

Looking at their last financial statement, assuming that they have to replace the entire property, plant and equipment to rebuild at the new site conservatively, the cost to relocate will be around 18.2m + 3.9m (purchase of new site) = 22.1m (excluding relocation costs of biological assets etc.)? Welcome to hear other VB bros' views as I may be missing out something as there was an article mentioned in the Edge Magazine earlier that  " Chew estimates that building a farm similar to the size of the current site would require an investment of more than $80 million. It would include the construction cost of buildings, a feed mill, the biogas plant and other equipment”. 

[yeokiwi]

Hmm.. why don't they close down and collect 46cts per share?
Still can sell away the farm equipment for a few cents.

Just joking. I think they should carry on with this business.

I believe most of the indoor equipment, installations and even the biogas plant can be moved to the new building.
It is kind of waste of money to dump the egg sorting equipment and buy a new one?

I suppose $80 million is the cost of building egg farm from nothing.

[opmi]

If Chew is selling the farm with the land to AVA, what is AVA going to do with the chicken farm?

[pianist]

This is like enblock build tear down and rebuild other things again. A lot of wastage noise and extra GDP created on the same land.

[ghchua]

I thought they are going to use it as a army training ground?

[ngcheeki]

Chew's Group result is out and currently this company is in net cash but the most interesting piece of information is their forward statement.

"We refer to the announcement released by the Company on 9 May 2016 in relation to,
inter alia, the divestment of the Group’s farm premises located at 20 Murai Farmway,
Singapore 709153 and an agreed list of assets, to the Government and the purchase
of a new site from the Government.
The Group, subject to the receipt of the proceeds and having made the respective
adjustments on the relevant assets and liabilities, is expected to record a one-time
other income of approximately $27 million in FY2016.
The Group is expected to incur additional expenses in relation to the design and
construction of the new farm."

Based on the 1HFY2016, the owner's equity is 24.873m and the NAV is 29.43 cents.

http://infopub.sgx.com/FileOpen/CLG%20-%...eID=403728

[CCUV]

They also need to rent the current site for 3 years from Ava,that will cost them a few millions.All in all not much gain from the sale of current farm

[desmondxyz]

The capital expenditure (excluding the Alienation Premium) required to build and equip the New Farm is approximately S$77 million (“Capex”). The Balance Sale Consideration will be utilised to finance the Capex. The remainder of approximately S$32 million will be financed by way of borrowings and/or external funding. Such financing will be asset-backed and serviced by cashflow generated from operations.


Seriously? those who hoping for big fat ang pow will be disappointed....



http://infopub.sgx.com/FileOpen/CGL%20-%...eID=406811

[ngcheeki]

Share price of chew's group did a catch up after the announcement of their FY2016 result. Even though there is no special dividend from the gain of disposal of their Murai chicken farm, share price of Chew's group went up to 32 cents or 30% on high volume of close to 2,000 lots compared to usual of less than 150 lots. The price surged is probably due to the increase of their NAV from around 30 cents to around 60+ cents. Based on the last traded price of 32 cents, I think there is more catch up to be done!! Do note that Chew's group new farm at Neo Tiew will require around $77m  capex. The following are some of the financial number of chews group based on the updated FY2016 for your reference.

FY2016
Total equity (S$ '000) $51,707.00
Total Number of Shares ('000) 84,498.00
NAV (S$) $0.6119

Trade receivables $4,489.00
Inventories $1,200.00
Cash (S$ '000) $45,310.00
Property, plant and equipment $4,251.00
Biological assets $6,544.00
Land use rights $4,049.00
Total values $65,843.00
(Sum of assets)/Total Number of Shares $0.7792

Cash (S$ '000) $45,310.00
$0.5362

Debt secured non-secured Total
Payable <= 1 year(S$ '000) $1,610.00 $0.00 $1,610.00
Payable > 1 year(S$ '000) $297.00 $0.00 $297.00
$1,907.00
Debt / Equity 3.69%
Cash - Debt $43,403.00
Net Cash per shares $0.5137


Total Current Asset $51,391.00
Total Current Liability $10,280.00
Total Long term Liabilities $4,273.00
Net Current Asset $36,838.00
Net Current Asset Per shares $0.4360


Market Price per share (cents) $0.3200
Price to Book Value 0.5229
Average DPS $0.0045
Yield 1.42%
Average EPS $0.02357
Average PE 13.58

Outlook FY2016
While we will continue to operate at the present site, the Group will also place its focus on developing the farm facilities at the
New Site. The Group is expected to incur additional expenses and resources in relation to the design and construction of the new farm.


http://infopub.sgx.com/Apps?A=COW_CorpAn...241116.pdf

vested