New Toyo

[Curiousparty]

the rest of the money about 10 cents cash is still with SAH. NEw Toyo's share is still the same. 34% of whatever that is in SAH.

Tien Wah has no investment properties. $25mil is with New Toyo.

Actually, net profit from NT's Specialty Paper Segment should be much higher. More like 6 to 7mil. (2010 profit before tax is $7.6m, after tax will be around $6m). I did not factor in the new supply contract with PMI. So give and take, this segment should be worth around 10 cents at least.


All in all, NAV should be around 40 cents. (excluding the cash New Toyo is holding now)...

Hi, just a quick question, rather new to this company.
based on valuation, SAH has SGD162million of cash right?
How come in Q2, SAH only announced 8.5cents of dividends? x 881,906,089 no. of ordinary shares, that is only SGD75m.
So where is all the rest of the money going?

Also, are you sure New Toyo holds 100% of all the investment properties?

Btw, think if you add the net cash position into your calculations, you will get a much higher NAV. Although P/E of 10 seems rather high.

Thanks!

[Underdogger]

The net indebtedness of New Toyo as of end June 2012 is only 34.8mil (total borrowing and finance leases less cash).
The net indebtedness by year end is projected to be 22.3 mil.

Even if New Toyo decides to fully pare down its net indebtedness, $54.4 mil - $22.3 mil = $32mil.

It still has $32mil for cash distribution or 7.2 cents!

*******
CuriousParty, you forgot to consider New Toyo's 49% stake in MEIL

a. 54% Stake in Tien Wah market price at 2.07 RM = 43mil SD (cash if sold off in open stock market)

b. 34% stake of SAH = 34% x 160mil = 54.4 mil SD (cash)

c. New Toyo’s own investment properties = $25.64 mil (market valuation as at Dec 2011 – Cash if disposed off in open property market)

d. New Toyo's own specialty paper business = $4mil to $5mil net profit per annum (Say 5 cents valuation at P/E = 5, forgot about new PMI contract for the moment)

e. New Toyo’s 49% stake in MEIL – FY2011 $11mil RM net profit per annum (7.5 cents valuation based on Tien Wah P/E of 7.4, FY2012 $11mil RM is projected to increase to $15mil RM)

40.5 cents in all, of which 28 cents are hard CASH.

After knowing their history for so long, value will be unlocked when the family regain full control for New Toyo. The family is rich and can easily take it private.

There is absolutely no reason to share with minorities. In fact looking at the current business structure, New Toyo is irrelevant. The main contributor is Tien Wah plus the former BAT business.

New Toyo is in net debt. Even unlocking value at M'sia site requires capex unless they sell away the land.

Hopefully I am wrong since there appears to be many well informed buddies here.

[l0nEr]

Sorry, how did you get the MYR11m for MEIL's profit per annum?
I'm looking at Tienwah's annual report... http://www.tienwah.com/2012%20Bursa%20An...3MB%29.pdf

Thanks!

[Underdogger]

The non-controlling interests in Tien Wah's AR all belongs to New Toyo.

MEIL is the only subsidiary not wholly owned by Tien Wah. So the non-controlling interest therefore all belong entirely to New Toyo.

Based on 6mth 2012, this is already 7.5mil RM. Full yr is expected to be at least 15mil RM. So with a P/E of 7.4, we will get about 10 cents, which is 25% higher than FY2011 valuation of 7.5 cents.

So all in all, 43 cents. Specialty paper's valuation might be on the conservative side too...given that the new supply contract from PMI has not been factored in, and I only applied P/E of 5.

Sorry, how did you get the MYR11m for MEIL's profit per annum?
I'm looking at Tienwah's annual report... http://www.tienwah.com/2012%20Bursa%20An...3MB%29.pdf

Thanks!

[potatolover]

any news of acquisition for Tien wah?

ended strongly at 2.16 Rm today

[gonggong]

re SAH announcement today. Its the first time that they mention in an announcement that returning all the cash is a possibility.

[Underdogger]

this is not first time.. It has been mentioned before.. Pls check out past announcements...

waste so much legal fees , etc....in the end, if nothing happens, "I dont know what to say"...

Sounds familiar..

re SAH announcement today. Its the first time that they mention in an announcement that returning all the cash is a possibility.

[pianist]

this is not first time.. It has been mentioned before.. Pls check out past announcements...

waste so much legal fees , etc....in the end, if nothing happens, "I dont know what to say"...

Sounds familiar..

have they paid the interim dividend of 80++ million to shareholders?

[gonggong]

Stomp stomp stomp


[quote='Underdogger' pid='31482' dateline='1345819880']
this is not first time.. It has been mentioned before.. Pls check out past announcements...

waste so much legal fees , etc....in the end, if nothing happens, "I dont know what to say"...

Sounds familiar..

[Underdogger]

the rental yield in Japan (net) can be as high as 10%....Maybe use all the cash proceeds to buy up properties in Japan to generate stable income