Spindex Industries

[freedom]

tough operating environment, lower profit, lower dividend.

[ngcheeki]

I'm expecting the company to announce dividend of at least 1.3 cents!! Keep my finger cross!

Net profit has dropped from S$6,096K to S$3,723K as a result dividend also dropped from 1.85 cents to 0.9 cents .

See the following for more detailed.

http://info.sgx.com/webcoranncatth.nsf/V...B0035A04E/$file/Spindex_FY2011_Full_Year_Announcement.pdf?openelement

[corydorus]

Is good to see they returned positive after Foreign Currency Translation. It can be worst considering only 6% margin type of business.
Future should be better, less crisis.

[littlecupid]

I am not accountant trained but should not we focus on the total comprehensive income instead, which includes currency exchange losses ?

[freedom]

I am not accountant trained but should not we focus on the total comprehensive income instead, which includes currency exchange losses ?

I believe "currency translation" loss in comprehensive income is not operating loss. It is probably related to assets in foreign countries operating in foreign currency, such as cash & cash equivalents, receivable, etc, which normally will not translate back to reporting currency in operation.

[kazukirai]

Spindex posted quite horrible results but as they say, "it's always darkest before dawn."

Net income fell so much chiefly due to two things- the increase in income tax expense (~$1.2m) as well as the foreign exchange loss (~$1.9m). At least, it wasn't because of a significant drop in sales or an inability to manage expenses.

Balance sheet still looks pretty strong.

CFO fell mainly due to a decrease in payables (~$4m). Spindex also spend ~$6.6m on PP&E. Management seems to be saying that it's Business as Usual with the level of CAPEX spending.

In the commentary, it says that Sales slowed in towards the end of the year so I think management is preparing for hard times ahead. The bright spot, if you could call it one, is that although the Imaging and Printing (IP) division showed a slowdown in sales, the Machinery & Automotive (MA) division posted a jump.

My personal take is that Spindex will face more challenging times in the next 6 mths. However, I think they'll be able to ride it out as they have before. Valuations-wise I think Spindex is nearer to attractive levels than other companies.

[pianist]

16 lots done today at $0.21..a hefty drop of 25% from previous close..i wonder what happened?

[kazukirai]

16 lots done today at $0.21..a hefty drop of 25% from previous close..i wonder what happened?

Desperate seller?

Certainly looked that way to me as all my usually illiquid counters had trades yesterday. And I note that there were bids at 0.27 just a few days ago but no sellers then.

Spindex starting to look cheap again at 0.21, if one can get it at that price that is.

[dydx]

Just checked my bank account and noted a nice credit from Spindex's $0.009/share Final dividend for FY11 (ended 30Jun11). Feeling happy to start a new week!

Those who are interested to learn more about this well-established regional manufacturer of machined turn-parts can review Spindex's latest FY11 AR.....
http://info.sgx.com/listprosp.nsf/07aed3...200299d16/$FILE/Spindex%20Industries%20AR2011.pdf

[kazukirai]

Spindex released 1H2011 results (link here).

- Net profit for 6 mths ending 31 Dec 11 improved 91% from $1.785mil to $3.409mil mainly due to a 27% decrease in Administrative Expense. This is attributed to 'overall favourable foreign exchange environment'.

- EPS at 2.95 for the period.

- Cash per share after netting off debt = $0.1607.

Question: Will Mr Market start re-rating Spindex? How far will he go?

(vested)

PS: Obviously I was wrong that Spindex's business would face further headwinds after the last half.

Spindex posted quite horrible results but as they say, "it's always darkest before dawn."

Net income fell so much chiefly due to two things- the increase in income tax expense (~$1.2m) as well as the foreign exchange loss (~$1.9m). At least, it wasn't because of a significant drop in sales or an inability to manage expenses.

Balance sheet still looks pretty strong.

CFO fell mainly due to a decrease in payables (~$4m). Spindex also spend ~$6.6m on PP&E. Management seems to be saying that it's Business as Usual with the level of CAPEX spending.

In the commentary, it says that Sales slowed in towards the end of the year so I think management is preparing for hard times ahead. The bright spot, if you could call it one, is that although the Imaging and Printing (IP) division showed a slowdown in sales, the Machinery & Automotive (MA) division posted a jump.

My personal take is that Spindex will face more challenging times in the next 6 mths. However, I think they'll be able to ride it out as they have before. Valuations-wise I think Spindex is nearer to attractive levels than other companies.