New Toyo

[Underdogger]

Comprehensive income increased from $13.4mil $29mil or 116% Gain.

EPS = 4.51 cents...

Nearly fell off my chair and heart attack

[portuser]

Good profit as well as strong cash flow has enabled New Toyo to pare its bank borrowings, from $89m as at 31 Dec 2010 to $73m a year later.

Of the $73m, $45m was incurred by Tien Wah. New Toyo's own borrowings amounted to $28m only.

I hope New Toyo will pay out a substantial portion of the special dividend it receives from Shanghai Asia (after completion of the assets sale).

New Toyo's attributable profit of $19.8m is after making a provision of $2.25m for the proposed ex-gratia retirement gratuity to Mr Yen (subject to approval by minority shareholders). Mr Yen spent more than 35 years, building New Toyo, from scratch, into a significant regional packaging group.

[portuser]

Good profit as well as strong cash flow has enabled New Toyo to pare its bank borrowings, from $89m as at 31 Dec 2010 to $73m a year later.

Of the $73m, $45m was incurred by Tien Wah. New Toyo's own borrowings amounted to $28m only.

I hope New Toyo will pay out a substantial portion of the special dividend it receives from Shanghai Asia (after completion of the assets sale).

New Toyo's attributable profit of $19.8m is after making a provision of $2.25m for the proposed ex-gratia retirement gratuity to Mr Yen (subject to approval by minority shareholders). Mr Yen spent more than 35 years, building New Toyo, from scratch, into a significant regional packaging group.

[Curiousparty]

Hi Portuser

1. Why doesnt the company pay out more dividends (still 0.97 cents??) despite the good profits and strong cashflow? Is it to conserve cash to pare down the debt?

2. In its recent results announcement, SAH said that it will continue to look for investments for the remaining 50% of the sales proceeds. Does it mean that shareholders have to wait forever and see the sales proceeds being eroded away by the overheads and CEO's salary?

"... the company does not currently intend to seek a delisting from the SGX. The company will continue to explore and assess investment options to seek viable business opportunities in other areas"

[psolhawk]

I think the special dividend will be given half a year later. Underdogger what do you think? I think SAH is a wasting financial resources in adopting this wait and see attitude.

[Underdogger]

Agreed with you that SAH is wasting overheads.....

New Toyo which holding 34% of SAH should be more worried than any SAH shareholders

Can SAH find a better business with profitability matching the current one?

Did anyone realize that SAH profit margin continue to improve by leaps and bounds after its asset sales to SWP?

Why was the management of SAH so eager to sell off such a profitable business probably on the cheap ?

The asset sales was indeed fraught with too many points of contention .....

SAH shareholders just want to get every single cent back at ONE SINGLE PAYMENT without any further delay!!

[Curiousparty]

Maybe I am just being too curious...

Why would anyone want to place a bid for SAH at 18.5 cents?

The existing pool left (taking into account the last dividend payout of 1 cent in 2011) is only 19.5 cents at the max...Look at SAH accounts.. the NTA of existing ops is probably negative at around 75mil RMB. Offset this with the sales proceeds and taking into account ( capital gain tax - $50mil RMB and finder's fee - $9mil RMB), we are left with NTA of around $866mil RMB or 19.6 cents per SAH share...

Furthermore, SAH has just declared 1 cent of dividend which is most likely going to be extracted from the 19.6 cents..., leaving only 18.6 cents...


In fact, the logical thing to do is to capitalize on the arbitrage opportunity afforded by New Toyo's 34% owning of SAH, and 54% owning of Tien Wah, whose performance has been nothing short of stellar

[cif5000]

Investors should be careful to note that the 21 cents stated in SAH's announcement will never be realized as we need to deduct the dividend payout of 1 cent (already paid out in 2010) as well as the overheads at the head office.

Thanks for the tip. Great insight.

For my learning purpose, how did you find out that the FY10 dividend was paid out of proceeds and not the operating profit?

Many many thanks.

[Curiousparty]

Any operating profit generated by SAH will go to SWP wef 30 June 2010.
This was clearly stated in the earlier sales agreements....

[cif5000]

Any operating profit generated by SAH will go to SWP wef 30 June 2010.
This was clearly stated in the earlier sales agreements....

Pardon my ignorance. May I know which agreement?