Willas-Array

[value.for.money]

Mid-year profits up 61%: http://info.sgx.com/webcoranncatth.nsf/V...900223708/$file/WillasArrayResultsRelease1H2011Final.pdf?openelement

Financial Statements: http://info.sgx.com/webcoranncatth.nsf/V...90027737C/$file/WillasArrayHalfYearFinancialStatement30092010.doc.pdf?openelement

Now trading at about 5 times FY'10 P/E, with a good Yield of abut 9. P/B of about 0.8.

I'm positive this is a hidden gem...

What do you think?

[Wee~]

Hi VFM,

It seems that Willas-Array has been making steady progress in expanding into the China market over the years, as evidenced in the growth of revenue from HK$ 2084 m in FY 05/06 to HK$ 2940 m in FY 09/10. Earnings increased from HK$ 24 m to HK$ 70 m during the corresponding period. Gross profit margin has hovered around 10.5% for the past 5 HY. Since its listing in 2001, there has been one year of loss (FY 08/09).

Dividend-wise, since its listing in 2001, the company has been giving out around 44% to 50% of earnings (except FY 05/06 - 75%, FY 08/09 - No dividend due to loss.)

Its gearing has increased to 191% as at HY 10/11 due to purchase of property and increase in trust-receipt loans. Assuming its cash on hand is used to pare down its debt, the (net debt/equity) ratio will be 88%.

Interestingly, the company has just proposed a 1-for-5 rights issue. http://info.sgx.com/webcoranncatth.nsf/V...50034E0D3/$file/WillasArrayRightsIssue27012011.pdf?openelement

Some of the main risks I can think of
1. Margin compression due to competition - the company had been able to achieve gross margin of 12.x% some years back.
2. Inventory obsolescence
3. Foreign currency fluctuations

[egghead]

Hi, is it possible to intro the business they are in?

[value.for.money]

Hi, is it possible to intro the business they are in?

As of their FY'10 turnover, they are in the business of trading electronic components (98.7%) and the trading and design of integrated circuits (1.3%).

[egghead]

Hi, their business environment seems extremely cyclical and their financial performance also fluctuate a lot. I'll pass.

[swn]

Mid-year profits up 61%: http://info.sgx.com/webcoranncatth.nsf/V...900223708/$file/WillasArrayResultsRelease1H2011Final.pdf?openelement

Financial Statements: http://info.sgx.com/webcoranncatth.nsf/V...90027737C/$file/WillasArrayHalfYearFinancialStatement30092010.doc.pdf?openelement

Now trading at about 5 times FY'10 P/E, with a good Yield of abut 9. P/B of about 0.8.

I'm positive this is a hidden gem...

What do you think?

No one seems to know about this counter when it is a profitable company and now pending approval from HK exchange for a dual listing. SGX approval already obtained.

[Shrivathsa]

Now it is trading at 8.2 times P/E with P/B of 0.69 and yield of 6.7%.

[cyclone]

PROFIT WARNING – EXPECTED DECREASE IN PROFITS

The Board wishes to inform the Shareholders and potential investors that it is expected that the consolidated profit attributable to owners of the Company for the six months ended September 30, 2014 may decrease by more than 40% as compared with the corresponding period in 2013.
...

The Board believes that the expected decrease in the consolidated profit attributable to owners of the Company for the six months ended September 30, 2014 was primarily attributable to the following reasons:
1. Decrease in share of profit of an associated company – a significant stock provision was made for the slow-moving inventories of the associated company resulting in a significant drop in net profit of the associated company; and
2. Decrease in gross margin – severe price competition in the overall electronic components market has exerted pressure on our product margin.

The Company is in the process of finalizing the Group’s interim results for the six months ended September 30, 2014. Details of the Group’s financial information for the six months ended September 30, 2014 will be disclosed in the forthcoming interim results announcement which is expected to be published in mid November 2014.

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

[CityFarmer]

Willas-Array says Toshiba has terminated distributorship deal with associate company

SINGAPORE (Sept 17): Willas-Array Electronics says Toshiba Electronics Asia and Toshiba Electronics (China) Co. have decided to terminate their respective distributorship agreements with the company's associated company, GW Electronics Company.

Willas-Array currently holds a 49% stake in GW Electronics whose primary business activity was to act as Toshiba's authorised distributor for the Toshib" brand of semiconductor products in Mainland China and Hong Kong.
...
http://www.theedgemarkets.com/sg/article...te-company

[ZZF]

One of the owners Mr Leung has been buying and added about 0.8% since August. Price has rebounded since the 50s low.