Spindex Industries

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#81
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.
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#82
Hi. Just like to ask, why Spindex only release results every half year and not quarterly?
Time to roll!!!
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#83
Spindex is under catalist listing.. It only needs to release half year results.
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#84
(17-08-2014, 09:39 PM)Bubbachuck Wrote: Hi. Just like to ask, why Spindex only release results every half year and not quarterly?

There is a rule for smaller company to release only half-year, not quarterly results. The criteria is on market cap, rather on the market IIRC
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#85
I see. Thanks. Looking forward for the full year result to be released soon. I think this one is steadily growing under the radar.
Time to roll!!!
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#86
(17-08-2014, 10:12 PM)Bubbachuck Wrote: I see. Thanks. Looking forward for the full year result to be released soon. I think this one is steadily growing under the radar.

Full year result released:

YoY profits increased 29%
However, profits for this half of the year is actually lower than the preceding 2 halfs (~4.1mil compared to ~4.9mil for preceding 2 halfs).

2.2 cents dividend declared. 22% increase over the previous 1.8 cents.

NAV seems to have rose to 64.63 cents.

FCF of ~1.2 mil this FY. Net cash now rose to 26.3mil.

(vested in small amounts)
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#87
thanks for the update. Good barometer of things happening on the ground in US.

-vested-
Virtual currencies are worth virtually nothing.
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#88
(26-08-2014, 08:35 PM)LocalOptimal Wrote: Full year result released:

YoY profits increased 29%
However, profits for this half of the year is actually lower than the preceding 2 halfs (~4.1mil compared to ~4.9mil for preceding 2 halfs).

2.2 cents dividend declared. 22% increase over the previous 1.8 cents.

NAV seems to have rose to 64.63 cents.

FCF of ~1.2 mil this FY. Net cash now rose to 26.3mil.

(vested in small amounts)


Another good year for Spindex. Cheap and steady grower.

_____________3yr CAGR_________ 5yr CAGR
Revenue --------- 6.32% ----------- 8.98%
Net Profit --------34.51% -----------14.56%
EPS ------------- 35.41% ---------- 15.04%

Trailing PE Ratio is 7 based on current price of 57c.

(vested)
Time to roll!!!
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#89
2H Net profit decrease is mainly due to the increase in the Administrative expense due to the commencement of the joint venture--spindex energy. If we look at the 2H's Revenue, GP and GPM, 49.2, 11.4, 23%, they are stable compared to 20141H's 49, 11.3, 23% and steady improvement compared to 2013 2H's 47.4, 10.5, 22%.



(26-08-2014, 08:35 PM)LocalOptimal Wrote:
(17-08-2014, 10:12 PM)Bubbachuck Wrote: I see. Thanks. Looking forward for the full year result to be released soon. I think this one is steadily growing under the radar.

Full year result released:

YoY profits increased 29%
However, profits for this half of the year is actually lower than the preceding 2 halfs (~4.1mil compared to ~4.9mil for preceding 2 halfs).

2.2 cents dividend declared. 22% increase over the previous 1.8 cents.

NAV seems to have rose to 64.63 cents.

FCF of ~1.2 mil this FY. Net cash now rose to 26.3mil.

(vested in small amounts)
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#90
(26-08-2014, 10:01 PM)kyle Wrote: 2H Net profit decrease is mainly due to the increase in the Administrative expense due to the commencement of the joint venture--spindex energy. If we look at the 2H's Revenue, GP and GPM, 49.2, 11.4, 23%, they are stable compared to 20141H's 49, 11.3, 23% and steady improvement compared to 2013 2H's 47.4, 10.5, 22%.

Thanks for the info. We'll get a more indicative picture in the next half report.
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