New Toyo

[Curiousparty]

Net profit attributable to equity holders of New Toyo = $19.8mil (FY2011).

Deducted $8mil from SAH
Plus $2.25mil (ex-gratia to Mr Yen)
Plus $2mil (Q3 onwards, new supply contract with Phillip Morris)

$16mil or 3.6 cents EPS for a steady state year.

Hi Curiousparty,

Last year Gross Profit $28 mil.
Associates. Profit $8 mil. (assuming Shanghai Asia)

This year Shanghai Asia makes no contributions.
Therefore gross profit about $20 mil. (assuming flat profits)

The bank balance is about $25 mil.

For the past few years, dividends is about 1.8cts to 2 cts.
Based on above, I assume they should be able to maintain its dividends.

Have to wait for the 2nd qtr to confirm.

[Underdogger]

Phillip Morris is a bigger player than BAT…

The ideal scenario is for PMI (Phillips Morris International) to consolidate all the tobacco businesses in the Philippines.

By consolidation, I mean "eat up" or swallow

Then pass on all the printing jobs to New Toyo ..best if NT can become the exclusive supplier to PMI in the Phillipines...

[potatolover]

if new toyo can secure a 7 plus 3 supply contract with PMI like what they have done with BAT, then new toyo will have a much more diversified revenue stream

Its valuation will take another quantum leap

[Underdogger]

Looks like New Toyo is taking a plunge to 20 cents? No news of special dividends...

[Curiousparty]

BAT is fighting back with new types of “budget tobacco”.

These budget tobacco are just priced slightly above the so-called black market rates. This can hopefully help BAT win back some of the lost revenue from black market.

Seems that Aussie Govt's attempt to lower smoking rate is backfiring on them...

The implication is that New Toyo will get much more printing jobs.

*******

http://www.timeslive.co.za/world/2012/05...aussie-row

BAT launches budget tobacco brand in Aussie row
British American Tobacco Australia said Thursday it was launching a budget cigarette brand, the latest salvo in a row with the government, which in turn accused the company of targeting teenagers.

BAT, which is spearheading a legal challenge to Australia's plan to introduce mandatory plain packaging for cigarettes, said it was forced into the move to win back market share from illegal tobacco products.
It said that since the government hiked tobacco taxes by 25 percent in 2010, the market had seen massive growth in cheap cigarettes and contraband.
"They're trying to reduce smoking rates through excise but instead it's making people opt for cheaper or illegal options," said BAT spokesman Scott McIntyre.
"It's a simple issue of supply and demand. Our customers have been down-trading to cheaper products or to illegal cigarettes, so we've been forced to compete."

The company has released a brand called Just Smokes, which retails for Aus$11.50 (US$11.43) for a pack of 25, much lower than the average price of Aus$16. Illegal packs are sold for Aus$8-10.


Health Minister Tanya Plibersek said she was not buying the argument.
"By dropping their prices British American Tobacco appears to be directly targeting vulnerable teenagers," she said in a statement.
"We know that young people are the most price-sensitive smokers of all.
"What (BAT) are interested in doing is attracting new smokers and keeping existing smokers, and they'll do whatever it takes to do that."
The government and big tobacco companies have been embroiled in a long-running row over new legislation that will see all cigarettes sold in uniform drab olive-green packets with graphic health warnings from December 1.
Four companies, led by BAT, are contesting the law in the High Court, claiming it infringes their intellectual property rights by banning brands and trademarks.
They also claim it will cut profits and result in fake products flooding the market because plain packaging is easier to reproduce.
Australia is the first country to mandate plain-packaging, but the ground-breaking move is being closely watched by other countries considering similar approaches, including Britain, Canada and New Zealand.
Australia estimates it has 15,000 deaths each year from tobacco-related illnesses

[Underdogger]

Did anyone take a good look at Tien Wah's 2011 Annual Report?

Hope you dont fall off your chair...

[Stockerman]

what do people do when there is recession, e.g. unemployed people in Spain, Greece...

sleep, SMOKE and drink at home..oops...drinking is too expensive... smoke more cos too depressed...

[greengiraffe]

Tobacco cos are the direct beneficiary while N Toyo can only pray for kindness from these sin companies, Hence BAT Malaysia enjoy's better following and possibly better payout than Tien Wah

what do people do when there is recession, e.g. unemployed people in Spain, Greece...

sleep, SMOKE and drink at home..oops...drinking is too expensive... smoke more cos too depressed...

[Underdogger]

there are numerious research reports pointing to higher incidence of smoking rates during recessionary periods...

Tobacco cos are the direct beneficiary while N Toyo can only pray for kindness from these sin companies, Hence BAT Malaysia enjoy's better following and possibly better payout than Tien Wah

what do people do when there is recession, e.g. unemployed people in Spain, Greece...

sleep, SMOKE and drink at home..oops...drinking is too expensive... smoke more cos too depressed...

[ken]

Did anyone take a good look at Tien Wah's 2011 Annual Report?

Hope you dont fall off your chair...

So, what is the results when reflected in New Toyo financial statements ?

I read from Reuters and understand that Tien Wah is paying
MYR17 cts as dividends.

By the way do you know how may shares did New Toyo has
in Tien Wah ?

Many Thanks.