New Toyo

[pianist]

is this considered a gd news?

[ken]

Neither yes nor no.

Maybe in November.

The good news is probably when
the 3rd Q results is out and it reflected a substantial
increase in cash.

[pianist]

Neither yes nor no.

Maybe in November.

The good news is probably when
the 3rd Q results is out and it reflected a substantial
increase in cash.

$0.008 interim div i think is not bad..

[Underdogger]

Amcor's M&A in the tobacco packaging sector might be "moderated" by the big tobacco players who do not want to see Amcor's monopolising all the tobacco-related printing and packaging...

Would Amcor appear to look silly to sell off its stake in Tien Wah to New Toyo few years ago, and come back now to buy it back from New Toyo?

Greengiraffe
Your points ought to be assessed carefully by investors.
I may add New Toyo got out of the unprofitable corrugated carton box business several years ago. Its existing specialty paper business is also not faring that well.
Your have surmised that New Toyo ended up with the 7+3-year BAT supply contract because Amcor opted out. One may also conjecture that Amcor competed with New Toyo, but lost out.
Amcor used to be a shareholder of Tien Wah, but sold its stake to New Toyo, enabling the latter to gain control of Tien Wah several years ago. Was Tien Wah such a marginal packaging company that did not excite Amcor?
It may not be true that cigarette packaging is characterised by low profitability. Amvig (which prints cigarette cartons in China) enjoys a high gross profit margin of around 33%. Tien Wah did not fare that badly; last year its gross profit margin was 21%, and may rise as the company scales its learning curve, and as some jobs are channeled to lower-cost Vietnam.
Tien Wah's reasonable margin and strong profit are after depreciating the equipment that were bought after the BAT supply contract.
New Toyo's passivity in the SAH's asset sales saga is disappointing.
Gary Yen's resignation as CEO, Mr Yen Wen Hwa's retirement, and the flurry of acquisitions by Amcor have spurred speculations about New Toyo being bought over. This may or may not come true. Poring over Tien Wah's annual reports provides optimism that New Toyo will ride on Tien Wah's strong prospects.

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Cash level should be around $55mil (or 12.5 cents) at group level by 3rd Q-2012.

By year end when SAH totally winds down, cash level is expected to be around $80mil (18.2 cents) at group level.

By then, there will be mounting pressure from shareholders for company to pay out special dividends if the company has nothing better to do with the money.

Forget about "tissue paper" business - it has resulted in HUGE losses back in 2001.

Neither yes nor no.

Maybe in November.

The good news is probably when
the 3rd Q results is out and it reflected a substantial
increase in cash.

[Underdogger]

Have Mr Market conveniently forgotten to price in the last 2 components (item 4 & 5) of New Toyo which worth at least 15 cents?

1. 54% Stake in Tien Wah market price at 2.10 RM = 43mil SD (cash if sold off in open stock market)
2. 34% stake of SAH = 34% x 160mil = 54.4 mil SD (cash)
3. New Toyo’s own investment properties = SD $25.64 mil (market valuation as at Dec 2011 – Cash if disposed off in open property market)

Total of (1) to (3) = 28 cents (close to cash status).


4. New Toyo's own specialty paper business = SD $4mil to $5mil net profit per annum (Say 5 cents valuation at P/E = 5, forgot about new PMI contract for the moment)
5. New Toyo’s 49% stake in Anzpac (thru MEIL) = $15mil RM net profit per annum (Say 10 cents valuation based on Tien Wah P/E of 7.4)

Total of (4) & (5) = 15 cents

[pianist]

what is anzpac and meil?

didnt know NT has investment properties..care to share more where are they located?

[Underdogger]

Pls see page 11 (Anzpac & MEIL).

Page 47 and 93 - New Toyo's Investment Properties

what is anzpac and meil?

didnt know NT has investment properties..care to share more where are they located?

[pianist]

thanks..funny..why would they need 8 units of residential apartments in Mongolia?

[Stockerman]

I also understand that both New Toyo and Tien Wah have a lot of properties (on top of investment properties) as these were bought many years ago to support operations (e.g. warehouse, factories, offices, residential units for staff, etc).

If a full rationalization of all these properties was done up, there could be value creation as well...

Just look at Tien Wah's list of properties. if one did not mention that Tien Wah is doing printing/packaging, one would think that Tien Wah is running some property investment...

Have Mr Market conveniently forgotten to price in the last 2 components (item 4 & 5) of New Toyo which worth at least 15 cents?

1. 54% Stake in Tien Wah market price at 2.10 RM = 43mil SD (cash if sold off in open stock market)
2. 34% stake of SAH = 34% x 160mil = 54.4 mil SD (cash)
3. New Toyo’s own investment properties = SD $25.64 mil (market valuation as at Dec 2011 – Cash if disposed off in open property market)

Total of (1) to (3) = 28 cents (close to cash status).


4. New Toyo's own specialty paper business = SD $4mil to $5mil net profit per annum (Say 5 cents valuation at P/E = 5, forgot about new PMI contract for the moment)
5. New Toyo’s 49% stake in Anzpac (thru MEIL) = $15mil RM net profit per annum (Say 10 cents valuation based on Tien Wah P/E of 7.4)

Total of (4) & (5) = 15 cents

[Stockerman]

maybe they managed to get it at cheap price and just renting it out and will sell off in due course...

thanks..funny..why would they need 8 units of residential apartments in Mongolia?