New Toyo

[rexace]

that has always been my expectation too, 5-6c over 2 payments

The young Chairman was noncommittal, saying that company will need to assess the strategic opportunities and then decide thereafter.

The retired Chairman however seemed to understand the sentiments of shareholders. He said that now that he is retired, he will be standing on the same side as shareholders, wanting to get as much dividends payout as possible.

Well, perhaps father and son can settle it amongst themselves and give all of us shareholders a reasonable payout.

My prelim estimate is 5 to 6 cents, perhaps over 2 batches.

Thanks Stockerman,

any feel of how willing they will be of sharing whatever they will eventually get from SAH ?

[portuser]

Today at New Toyo's AGM, someone asked about the impact of Plain Packaging on the profitability. The general impression is that since less colours will be required, the cost of printing may drop. i.e. revenue will drop.

This may not seem to be the case.

Company explained that the profitability will increase. The jobs will be less complex and can be now be consolidated together for greater efficiency. It will be easier to meet the KIP set by BAT (completion of job within a certain time span). Ink costs are more or less fixed as these are sourced for New Toyo by BAT. As long as job is completed within the stipulated KPI timing, the same fee rate is paid.

So actually, transition to plain packaging printing jobs will free up capacity??

I think the fuller explanation is that plain packaging prohibits variation of the designs of cigarette cartons. Companies like Tien Wah can then produce many cartons in a single printing run.

In its 2010 annual report, Tien Wah stated that in seeking to maintain their leadership positions, its tobacco customers launch new designs as well as promotional and limited editions products to differentiate their cigarettes from others'. Printing runs of such products are short and entail high setup times. Tien Wah had to buy more printing presses to meet the demands.

I understand that health warning images are printed by 11-colour press for high resolution. Health warning image is an integral part of plain packaging, and the point that it entails fewer colours is not correct.

[potatolover]

Hope that the baby does not become a liability to New Toyo because technically if baby is in trouble, New Toyo has a 34% stake in it too...

It can go both ways. If a shell SAH ends up in deep debt, for every single dollar of debt, New Toyo will have to make up 34 cents of it.

I still maintain, base case, a special div of 5-6c is reasonable. maybe not a 1 time payment, but over 2 payments of 2.5-3c each time.

as long as New Toyo gets back cold hard cash from SAH. They still own 34% of be it an empty shell. whatever happens to this empty shell from now on can only be UP, no downside cos to New Toyo, its already empty.

If ever this empty shell becomes sexy, they will have 34% of a sexy windfall.

if this shell decides to pay 100%, then small windfall.

if SAH squanders away the remaining 50%, well, at least got rid of a spoilt kid and recouped some cash from the spoilt kid

[Stockerman]

Hi Rexace

What is a sexy windfall? I dont quite get this point. Tks.

GG,

that's the difference between a family run company vs a company with a professionally appointed manager.

a professional CEO has its KPI spelt out for him, and remunerated accordingly. A professional CEO will not volunteer to KIV his pay package.

so I view the Yen family's move away from management a positive one.
Things will now happen faster, PLUS more accountable.

SAH is now history, after distribution , whether 50% ( 6c ) or 100% ( 12c ), is pure bonus to New Toyo.

Clean up and start on firmer and cleaner grounds.

I still maintain, base case, a special div of 5-6c is reasonable. maybe not a 1 time payment, but over 2 payments of 2.5-3c each time.

as long as New Toyo gets back cold hard cash from SAH. They still own 34% of be it an empty shell. whatever happens to this empty shell from now on can only be UP, no downside cos to New Toyo, its already empty.

If ever this empty shell becomes sexy, they will have 34% of a sexy windfall.

if this shell decides to pay 100%, then small windfall.

if SAH squanders away the remaining 50%, well, at least got rid of a spoilt kid and recouped some cash from the spoilt kid




[quote='greengiraffe' pid='23677' dateline='1335455686']
Hi,

Sounds pretty exciting. FYI, after they listed SAH in 2004, it took them 4 years to execute the buyout of BAT's oz operations and when machinery finally got installed, the benefits only started to flow from 2H 2011.

[rexace]

Stockerman,

what I meant was if SAH manages to secure a new exciting biz, or if they become a RTO company, like a Myanmar business ? , it might become a sexy windfall for New Toyo.



[quote='Stockerman' pid='23950' dateline='1335773730']
Hi Rexace

What is a sexy windfall? I dont quite get this point. Tks.

[Stockerman]

Hi Rexace

In your view, what are the types of exciting businesses that would be of interest to New Toyo?

Stockerman,

what I meant was if SAH manages to secure a new exciting biz, or if they become a RTO company, like a Myanmar business ? , it might become a sexy windfall for New Toyo.

[quote='Stockerman' pid='23950' dateline='1335773730']
Hi Rexace

What is a sexy windfall? I dont quite get this point. Tks.

[rexace]

Stockerman,

my base case scenario for New Toyo has always been just a return of 5-6c from SAH. Anything more is a bonus. Thus, frankly, I never thought New Toyo will get anything more from SAH. So, if end of the day, something more than ordinary happens for SAH, it would be a sexy windfall in my opinion.


[quote='Stockerman' pid='23968' dateline='1335793606']
Hi Rexace

In your view, what are the types of exciting businesses that would be of interest to New Toyo?

---

Stockerman,

did you notice the announcement from SAH today ?

our retired or 'retired' chairman who seemed to understand sentiments of shareholders, who claim that he will be standing on the same side as shareholders of New Toyo, HAS BEEN appointed interim CEO of SAH .

interesting twist in my view. hmmmmmmmm

[quote='Stockerman' pid='23704' dateline='1335494774']
The young Chairman was noncommittal, saying that company will need to assess the strategic opportunities and then decide thereafter.

The retired Chairman however seemed to understand the sentiments of shareholders. He said that now that he is retired, he will be standing on the same side as shareholders, wanting to get as much dividends payout as possible.

Well, perhaps father and son can settle it amongst themselves and give all of us shareholders a reasonable payout.

My prelim estimate is 5 to 6 cents, perhaps over 2 batches.

---

Stockerman,

did you notice the announcement from SAH today ?

our retired or 'retired' chairman who seemed to understand sentiments of shareholders, who claim that he will be standing on the same side as shareholders of New Toyo, HAS BEEN appointed interim CEO of SAH .

interesting twist in my view. hmmmmmmmm

[quote='Stockerman' pid='23704' dateline='1335494774']
The young Chairman was noncommittal, saying that company will need to assess the strategic opportunities and then decide thereafter.

The retired Chairman however seemed to understand the sentiments of shareholders. He said that now that he is retired, he will be standing on the same side as shareholders, wanting to get as much dividends payout as possible.

Well, perhaps father and son can settle it amongst themselves and give all of us shareholders a reasonable payout.

My prelim estimate is 5 to 6 cents, perhaps over 2 batches.

[potatolover]

Some corporate developments, just announced by SAH ....

Mr Yen Wen Hwa (father) has been appointed as interim CEO of SAH.

Not sure what are the implications for SAH and New Toyo?

Previously when Mr Yen (Father) went back to Tien Wah as CEO to oversee its operations, Tien Wah's net income improved from

FY2010-18.9mil (RM) to
FY2011- 37.2mil (RM)

or approx 100% gain.

[Underdogger]

In SAH's latest 1stQ 2012 results, it said the following:-

The Company intends to distribute up to 50% of the net proceeds of the Transaction, with the distribution to be by way of dividend, capital reduction or such other manner as the Board shall conclude in the 2Q2012; and in respect of the remaining 50% (or more) of the net proceeds of the Transaction, the Company will assess an explore various investment options to seek viable business opportunities in other areas of business.

Following Completion of the Transaction, pursuant to Rule 1018 of the listing manual, the Company will be providing its first monthly valuation of its net assets and utilisation of cash shortly.
.

[Curiousparty]

One could not help wondering about the new composition of SAH..
It just looks like the Liu family is "letting New Toyo to have a field day". It is akin to giving the whole shell to New Toyo to run.

And of course, it is likely that New Toyo will exploit the SHELL to its own advantage.

I think there are far reaching implications to New Toyo.

Let's keep fingers cross and wait out for new exciting developments to emerge.

Some corporate developments, just announced by SAH ....

Mr Yen Wen Hwa (father) has been appointed as interim CEO of SAH.

Not sure what are the implications for SAH and New Toyo?

Previously when Mr Yen (Father) went back to Tien Wah as CEO to oversee its operations, Tien Wah's net income improved from

FY2010-18.9mil (RM) to
FY2011- 37.2mil (RM)

or approx 100% gain.