New Toyo

[Musicwhiz]

As a reminder to all, please refrain from making emotional remarks and/or personal attacks in this thread.

Let us all discuss issues relating to the Company in a civil, mature manner.

Thank you.

[Stockerman]

yes, I will rather expose myself to criticism and be very open about all the downsides of the counter in question, rather than basking in SILLY blissful ignorance, ONLY to realize that one fine day, the stock just fades into a dead piece of log like many S-chips in history...

Doesn't this hurt more? Mr Kiddy

If I tell you I am selling but yet I am buying ?

If I tell you I am buying but yet I am selling ?

If I sell some only to buy more later ?

If I buy some only to sell more later ?

New Toyo is dropping

U have been exposed and I will leave it to readers to judge. This is my last post on you.

[Stockerman]

British Govt dropped the plain packaging deal !!...

probably got threathened by the "mafia"....haha -victory for the big tobacco companies and their cronies

---

May 2 (Bloomberg) --Imperial Tobacco Group Plc, (IMT) Europe’s second-biggest tobacco company, rose the most in a year in London trading after the Sun reported that the U.K. government has scrapped plans to consider legislation on plain packaging.

The shares jumped as much as 2.9 percent to 2,373 pence, the steepest intraday advance since May 1, 2012. British American Tobacco Plc (BATS) rose 0.4 percent to 3,620 pence.

While U.K. Prime Minister David Cameron initially backed plans for plain packaging, he has backed away as such a move would damage the packaging industry and cost 3 billion pounds ($4.7 billion) in lost tax revenue, the Sun reported. The proposed law is to be pulled from the Queen’s speech on May 8, which is the government’s announcement of its program for the next parliamentary session, the newspaper said.

“If this is true, it is good news for tobacco shares and Imperial in particular,” said Erik Bloomquist, an analyst at Berenberg Bank in London. Imperial Tobacco is market leader in the U.K., with a share of about 45 percent.

Australia became the first country to introduce plain packaging on Dec. 1. All cigarettes in the country must be sold in uniform packs, with the brand name relegated to the bottom quarter of the package on a drab brown background. Both Imperial Tobacco and BAT have said so far they have seen no significant fall-off in cigarette consumption there.

The U.K. government hasn’t released the results of its consultation on plain packaging, the Department of Health said today in an e-mailed statement.

‘Open Mind’

“The government has an open mind on this issue and any decisions to take further action will be taken only after full consideration of the consultation responses, evidence and other relevant information,” the department said.

Imperial Tobacco doesn’t believe plain packaging will have a “material impact” on consumption, “which is one of the reasons why we are so against this,” Corporate Affairs Director Matthew Phillips said on a press call this week. “There are a lot of other things the government should be focused on right now, but the first step is the result of the consultation.”

Imperial Tobacco shares traded at 2,369 pence, up 2.7 percent, at 12:09 p.m. in London.

[pianist]

'sell in may and go away'?

they said dunno why in may, stock price always drop..

but i came to realise that month of may is the month of XD...hee

logically price will drop..:p

pony tail ceo? is he from the manchurian dynasty?

[Stockerman]

29 cents , dropped 5.17% today alone!

Solid drop

[greengiraffe]

Hi MW,

I absolutely agree - 和气生财。Its only $ why the blood and sweat? No sweat mates, keep the cool and look for more $ making ideas - don't lose the forest for a tree - simply not worth it...

GG

As a reminder to all, please refrain from making emotional remarks and/or personal attacks in this thread.

Let us all discuss issues relating to the Company in a civil, mature manner.

Thank you.

[CityFarmer]

Exactly, only a cool mind will see opportunities, thus $$.

Hi MW,

I absolutely agree - 和气生财。Its only $ why the blood and sweat? No sweat mates, keep the cool and look for more $ making ideas - don't lose the forest for a tree - simply not worth it...

GG

As a reminder to all, please refrain from making emotional remarks and/or personal attacks in this thread.

Let us all discuss issues relating to the Company in a civil, mature manner.

Thank you.

[cif5000]

29 cents , dropped 5.17% today alone!

Solid drop

From $0.305 to $0.29, the drop is 4.9%. And that's on the day which the counter traded XD of $0.009.

[Stockerman]

As the expectation of any special dividends wear off, it is likely to further drop back to 25 cents...

afterall, it has lost 1/3 of its EPS with the axing off of the SAH arm. no reason for it to trade so high in the 1st place..

And any payment of special dividend will be reduced from the existing NAV.

There is NO NEW NAV per se - investors tend to be blindsided by this fact...

29 cents , dropped 5.17% today alone!

Solid drop

From $0.305 to $0.29, the drop is 4.9%. And that's on the day which the counter traded XD of $0.009.

[Stockerman]

As we approach the end of the 7-year contract in Dec 2015, would probably expect to see the profit margin of Tien Wah/New Toyo to be under immense pressure.

Just need to look at AMVIG most recent results. Amvig cited the drop in GPM due to lower ASP to win orders under the tendering system.

Expect the same to happen for Tien Wah and New Toyo....
AMVIG has much more buffer as its GPM is much higher than Tien Wah. So Tien Wah would probably fare much worse as it gears up in preparation for tender renewal (if it can still manage to renew it).

BAT will continue to "squeeze" Tien Wah to perform up to mark. In fact, Tien Wah GPM has been coming down over the last few quarters, especially in Q42012.
BAT divested its printing business because the GPM was not as good as tobacco manufacturing, i.e. leaving the crumbles for supporting industries like Tien Wah, Amcor, etc..

**************************
AMVIG


http://www.amvig.com/eng/ir/highlight.htm


GPM
During the Reporting Period, the overall gross profit margin was 30.0%, representing a drop of 3.8
percentage points when compared to 33.8% achieved in 2011. The decline in gross profit margin
was mainly due to lower average selling prices in order to win orders under the tendering system.
Gross profit amount reduced slightly from HK$1,139 million to HK$1,080 million.


Prospects
We observed that the tobacco companies continued to fine tuning the tendering system throughout
2012. The revised system puts more weight on the abilities and capabilities of the suppliers. As
a leader in the industry, AMVIG will benefit from such changes. In addition, the Group will put
more efforts in research and development, which aims at creating new designs for tobacco groups
on one hand, and reduce costs and process leakages on the other. All these efforts will produce
improvements in profitability.

We expect the operational environment in tobacco packaging industry to remain challenging in
the coming year. Nevertheless, AMVIG will strive to maintain its leading position in the industry
and commit to the highest level of product quality. We will continue to maintain our dual-growth
strategy to grow our business. With a strong financial position, AMVIG is poised to further pursue
business and acquisition opportunities arising from the ongoing consolidation of tobacco industry.