PCI

[smallcaps]

The AR link working already:

http://infopub.sgx.com/FileOpen/PCI%20Li...leID=23499

Seems not much changes in the top 20 shareholders, despite the 10 cents dividends announced in the FY14 results which caused a run up in the stock price. I presume the minorities shareholders are a bunch of hardcore long term holders, who rejected the 50 cents offer by Chuan Hup in 2011.

[BlueKelah]

Appointment of Senior Vice President, Finance - "Mr Wan has been seconded from Chuan Hup Holdings Limited, the holding company of PCI Limited, to PCI Limited as Senior Vice President, Finance. His secondment was reviewed and recommended by the Nominating Committee and approved by the Board, after taking into consideration Mr Wan's qualifications and work experience."

Not sure what to make of this, CHH could be in the process of completing their takeover with another offer and making sure it goes more smoothly.

[smallcaps]

Appointment of Senior Vice President, Finance - "Mr Wan has been seconded from Chuan Hup Holdings Limited, the holding company of PCI Limited, to PCI Limited as Senior Vice President, Finance. His secondment was reviewed and recommended by the Nominating Committee and approved by the Board, after taking into consideration Mr Wan's qualifications and work experience."

Not sure what to make of this, CHH could be in the process of completing their takeover with another offer and making sure it goes more smoothly.

Quite significant changes within a week. CFO left. ID also left.
Now left with 3 non-ID and 1 ID. If no ID, can remain listed?

Interestingly, this one not coming as CFO. It seems in 2012, he was CFO of Straits Trading for half a year:

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

[BlueKelah]

Didn't know he was at straits as CFO, before it was dissolved and He is also director at 29 other companies! Gosh...

So likely he is there to "wrap things up" ? Looks like a high chance of GO

Now that 10 cents div is already XD, the new NAV is only around 45cents. Which also means since they GO 50cents before, they should have more than ample cash to GO at that price again.

[smallcaps]

Making a note here that:

Falcon has made an offer for CH Offshore @49.5 cents,
and Chuan Hup holds 167,553,026 shares in CH Offshore, which is approx S$83 mil @ 49.5 cents.

Chuan Hup holds 152,701,506 shares in PCI, out of total shares of 199,099,000
which means if GO need to buy the rest of the 46,397,494 shares.

If GO @ 50 cents, then need S$23.2 mil for the rest.
If GO @ 60 cents, then need S$27.8 mil for the rest.
If GO @ 70 cents, then need S$32.5 mil for the rest.

After giving out the recent 10 sg cents dividend, PCI currently probably has around S$60 mil in net cash = 30 cents per share,

Any mistakes buddies pls highlight.

[BlueKelah]

Making a note here that:

Falcon has made an offer for CH Offshore @49.5 cents,
and Chuan Hup holds 167,553,026 shares in CH Offshore, which is approx S$83 mil @ 49.5 cents.

Chuan Hup holds 152,701,506 shares in PCI, out of total shares of 199,099,000
which means if GO need to buy the rest of the 46,397,494 shares.

If GO @ 50 cents, then need S$23.2 mil for the rest.
If GO @ 60 cents, then need S$27.8 mil for the rest.
If GO @ 70 cents, then need S$32.5 mil for the rest.

After giving out the recent 10 sg cents dividend, PCI currently probably has around S$60 mil in net cash = 30 cents per share,

Any mistakes buddies pls highlight.

Cash eq would be 37.95m post this recent round of 10c div. Likely to have more payout so chh can *GO again* at lower prices with the cash from the div.

via Galaxy Tab S with Tapatalk

[smallcaps]

PCI buying building at 35 PIONEER ROAD NORTH, from Amtek, for S$22.5mil:

http://infopub.sgx.com/FileOpen/Amtek-Sa...eID=330211
http://infopub.sgx.com/FileOpen/Proposed...eID=330310

RATIONALE FOR THE PROPOSED ACQUISITION
The Board and the Company's management are of the view that the Proposed Acquisition is
advantageous and will benefit the Group for the reasons stated below.
The Group intends to relocate to and use the Property as its new headquarters for its electronic
manufacturing services, including design and development, materials engineering and qualification testing,
manufacturing engineering and prototype production and testing services, as well as for its supply chain
management and logistics services (the "Proposed Use").

https://www.google.com.sg/maps/@1.328990...e0!6m1!1e1

[Dividend Hermit]

Given the acquisition, is the 3-cent dividend still sustainable?
PCI appears on my stock screener but I am wary of the dividend payout.

[BlueKelah]

Given the acquisition, is the 3-cent dividend still sustainable?
PCI appears on my stock screener but I am wary of the dividend payout.

Yes. Company still has 15+m cash left and if EPS maintains at 4 cents+ this year.

[smallcaps]

Based on latest balance sheet (30 Sep 2014), PCI has US$52.4mil of cash & cash equivalents (non-pledged):

http://infopub.sgx.com/FileOpen/Announce...eID=323131

Based on an exchange rate of 1.33, the 10 sg cents dividend = 199.099 * 0.1 / 1.33 = US$15mil

And then according to the acquisition announcement:

http://infopub.sgx.com/FileOpen/Proposed...eID=330310

'The Consideration is payable in cash and will be financed by the Group through a combination of
internal funds and bank borrowings.'

Assuming 60% borrowings, then cash required for the acqusition = 0.4 * 22.5 / 1.33 = US$6.8 mil

As a result, the remaining cash & cash equivalents = 52.4 - 15 - 6.8 = US$30.6mil = 20.4 sg cents per share

With this acqusition, the questions that I have:
1) Is whether PCI is expecting an expansion in EMS/Logistics business, and hence need more factory space?
2) What's going to happen to the existing property along AYE? The last valuation done on the Jalan Ahmad Ibrahim properties in 2012 amounted to US17.7mil. - http://infopub.sgx.com/FileOpen/PCI%20Li...ileID=2948