Spindex Industries

[dydx]

FY15 (ended 30Jun15) AR just out and makes interesting reading.....
http://infopub.sgx.com/FileOpen/Spindex_...eID=373107

Looking for to the $0.028/share final dividend which will be payable on 19Nov15, with XD date fixed for 2Nov15.

[reality]

Are you all related to Spindex? It seems like singing and praising for their own company.
Personal experience, I would not buy such a low volume stock. Why buying such a stock at this price and not buying another competitor company with much lower price?

[Thaddy0103]

Are you all related to Spindex? It seems like singing and praising for their own company.
Personal experience, I would not buy such a low volume stock. Why buying such a stock at this price and not buying another competitor company with much lower price?

This is one of the counter I have been checking out recently
Seem like quite a few things looking up for them.
Anyway correct me if I'm wrong but their nearest competitor in term of products related should be Innovalues and compare to Spindex aren't exactly cheap base on book value.
Seem to me Spindex offer more value and Innovalues more growth value as dividend wise are around 4% between them.
Again base on personal choice and own due diligence.

[nervesofsteel]

Are you all related to Spindex? It seems like singing and praising for their own company.
Personal experience, I would not buy such a low volume stock. Why buying such a stock at this price and not buying another competitor company with much lower price?

Probably so.

I hope u are not just referring to the price or the volume for the reason to switch but by more meaningful terms like track record, valuations, outlook, management quality etc

But pls enlighten us, which counter is better and by which terms? I am keen to know.

[Elliot]

A closer look into the 1H (ended 31Dec13) result and numbers should give an idea to what extent Spindex at the last done share price of $0.54 remains under-priced by Mr Market…..
http://infopub.sgx.com/FileOpen/SpindexI...ileID=4694

From the earnings angle, a simple extrapolation of 1H's EPS at $0.043 would give a projected FY14 (ended 30Jun14) full-year EPS of $0.086. As Spindex is a well-established business, a very conservative PER of 8x would give a simple valuation of $0.688/share.

From a balance-sheet and asset coverage angle, using the latest 30Dec13 NAV/share at $0.6155 and adding to it a projected 2H's EPS of $0.043, would give a projected 30Jun14 NAV/share of $0.6585. Bearing in mind that Spindex's manufacturing assets (including quite a few self-owned factories in the region) are of good quality and well-maintained, and that Spindex has a good customer base comprising mostly leading MNCs, a simple 20% premium to account for hidden value in industrial properties and business goodwill, would give a simple valuation of $0.7902.

For simplicity, I suppose we can take a simple average of the 2 valuation numbers above, and that would give a blended simple valuation of $0.7391/share. Of course, we should also ask ourselves if someone were to make an offer at $0.7391/share to the controlling shareholders Tan Family, would the Tans bite?  Well, I suspect that very likely the Tans - who should know what is the fair value for the entire business and for their controlling shareholding block - would not.

[Elliot]

I have been a shareholder of Spindex for the last few years and have grown my capital quite happily. In the last few days, I have been really stunned by the aggressive advance in share price. Then I found this forum and was stunned by your uncanny prediction! The price is now where you said it would be! You must be a Master Investor or something or have some kind of crystal ball....

Now I am in a bind. Should I sell and take profit? How much further does this baby have to go, do you know?

Thank you,

Elliot



dydxA closer look into the 1H (ended 31Dec13) result and numbers should give an idea to what extent Spindex at the last done share price of $0.54 remains under-priced by Mr Market…..
http://infopub.sgx.com/FileOpen/SpindexI...ileID=4694

From the earnings angle, a simple extrapolation of 1H's EPS at $0.043 would give a projected FY14 (ended 30Jun14) full-year EPS of $0.086. As Spindex is a well-established business, a very conservative PER of 8x would give a simple valuation of $0.688/share.

From a balance-sheet and asset coverage angle, using the latest 30Dec13 NAV/share at $0.6155 and adding to it a projected 2H's EPS of $0.043, would give a projected 30Jun14 NAV/share of $0.6585. Bearing in mind that Spindex's manufacturing assets (including quite a few self-owned factories in the region) are of good quality and well-maintained, and that Spindex has a good customer base comprising mostly leading MNCs, a simple 20% premium to account for hidden value in industrial properties and business goodwill, would give a simple valuation of $0.7902.

For simplicity, I suppose we can take a simple average of the 2 valuation numbers above, and that would give a blended simple valuation of $0.7391/share. Of course, we should also ask ourselves if someone were to make an offer at $0.7391/share to the controlling shareholders Tan Family, would the Tans bite?  Well, I suspect that very likely the Tans - who should know what is the fair value for the entire business and for their controlling shareholding block - would not.

[Raks]

Are you all related to Spindex? It seems like singing and praising for their own company.
Personal experience, I would not buy such a low volume stock. Why buying such a stock at this price and not buying another competitor company with much lower price?

Pardon their excitement. It should be the total opposite of my feelig. please tell me current spindex price is due to stock consolidation.

Spindex was ranked 3rd in my to-buy list but I didn't buy. I got CASA, TTJ, popular and Guthrie. CASA is a dud, TTJ is ok, P29 and G33 were privatised.

MAkes me look at that analysis theme again. I missed Riverstone at 48 cents and Dutech too  . But escaped from buying Ausgroup. THe ranking was created by assigning merit figures based on EPS CAGR, Median ROA, Median Dividend, FCF median,Rev NTA per share CAGR, and equity reserve CAGR. 

Although list has ausgroup and CASA (CASA was ranked no.1) I would have got 30% in 18 months if I did equal weightage. Provided no split/reverse split, and excluding div. 
Really must relook at that approach!

Digging undervalued stocks often means getting unpopular stocks. The ease of getting divorce should not be a factor in considering marriage. Contrarians who bought when no many were buying, secretly hope their theory would recognized one day. When that day comes, not just money, but re-cog-nized.

Personal experience.

[chialc88]

Like! Raks, you had very very interesting taste on unpopular stocks.

[dydx]

The fact remains that Spindex's well-established precision-machined components and assemblies business and profits have grown by quite a lot since FY14 (ended 30Jun14).....
http://www.spindex.com.sg [corporate website]
http://infopub.sgx.com/FileOpen/SpindexI...eID=312414 [FY14 result announcement]
In FY14, Spindex recoded Revenue of $98.2m, PBT of $11.0m, and NP of $9.3m.

Using Spindex's latest 1H (ended 31Dec15) result as a basis for projection.....
http://infopub.sgx.com/FileOpen/SpindexI...eID=388214
By simple extrapolation, in this FY16 (ending 30Jun16), Spindex is poised to record a Revenue of $122.5m, a PBT of $18.2m, and a NP of $15.0m - translating to an EPS of $0.13 - together with a projected 30Jun16 NAV/share hitting a new high $0.817. These key numbers, if realised, would be another solid improvement over the healthy FY15 result and numbers.....
http://infopub.sgx.com/FileOpen/SpindexI...eID=367214

It is reasonable to expect that under the current proven management team headed by Chairman Tan Choo Pie and his able son, MD Tan Heok Ting, Spindex's business volume and scale will continue to grow, and hopefully profits will follow the same. Therefore, it is also reasonable to expect that the fair intrinsic value of Spindex's entire business and unit share, to continue to grow and be pegged at a reasonable premium over its latest NAV and NAV/share.

I hope that Spindex will pay out another higher final dividend (last FY15: $0.028/share) when the full-year result is released in Aug16.

[Elliot]

The fact remains that Spindex's well-established precision-machined components and assemblies business and profits have grown by quite a lot since FY14 (ended 30Jun14).....
http://www.spindex.com.sg [corporate website]
http://infopub.sgx.com/FileOpen/SpindexI...eID=312414 [FY14 result announcement]
In FY14, Spindex recoded Revenue of $98.2m, PBT of $11.0m, and NP of $9.3m.

Using Spindex's latest 1H (ended 31Dec15) result as a basis for projection.....
http://infopub.sgx.com/FileOpen/SpindexI...eID=388214
By simple extrapolation, in this FY16 (ending 30Jun16), Spindex is poised to record a Revenue of $122.5m, a PBT of $18.2m, and a NP of $15.0m - translating to an EPS of $0.13 - together with a projected 30Jun16 NAV/share hitting a new high $0.817. These key numbers, if realised, would be another solid improvement over the healthy FY15 result and numbers.....
http://infopub.sgx.com/FileOpen/SpindexI...eID=367214

It is reasonable to expect that under the current proven management team headed by Chairman Tan Choo Pie and his able son, MD Tan Heok Ting, Spindex's business volume and scale will continue to grow, and hopefully profits will follow the same. Therefore, it is also reasonable to expect that the fair intrinsic value of Spindex's entire business and unit share, to continue to grow and be pegged at a reasonable premium over its latest NAV and NAV/share.

I hope that Spindex will pay out another higher final dividend (last FY15: $0.028/share) when the full-year result is released in Aug16.

Thank you for replying, DYDX. Wow if really there is another 6-7 or more cents of mileage to go, then it is not the time to let go of this baby. But I also have to consider how long it will take to get there. Cos there is an opportunity cost to holding funds as well. Sigh, the decision is tough. Wish I had more money!

But anyway, I appreciate your reply and opinion. Will consider pros and cons. Peace.