Sakae

[dreamybear]

Given the recent privatisation offer of Breadtalk, I am wondering whether the same wld happen to Sakae if the share price continues to languish. 

NAV : $0.2164
Share price : $0.08 

Total no. of issued shares (excluding treasury shares) : 139,472,000, Mkt Cap : $11.16m
Mr Foo + Raffles Nominees already hold : 22.89% + 43.05%, which is abt 66%.

Its BS (AR2019) show bank loans of $50m(pg 114) agst $66.7m worth of ppty(pg108).

According to the AR, Mr Foo is paid under $750k p.a. so I think it shdn't be a stretch.


https://links.sgx.com/FileOpen/Announcem...eID=596593 [FS]
https://links.sgx.com/FileOpen/Sakae%20A...eID=582102 [AR]

*not vested*

[¯|_(ツ)_/¯]

Profit Guidance: the Group is expected to report a loss for FY2020.
https://links.sgx.com/FileOpen/Announcem...eID=629670

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

4QFY2020 as at 30 Jun 2020
Rev $3m (vs 10m)
GP  $2m (vs  6m)
NP  $2m (vs -7m)

FY2020 Result
Rev $29m (vs 44m)
GP  $19m (vs 28m)
Net Loss $0.3m (vs 13m)

With high operating cost pressures, the Food & Beverage industry is expected to face even greater challenges, intensified by the uncertainties of the Covid-19 situation which may include a sudden surge in community cases and consequently the implementation of new measures that may affect dine-in services, consumer demand and market sentiment. 
https://links.sgx.com/FileOpen/Announcem...eID=629865

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

Sakae 9M2021 Result as at 31Mar2021
Rev S$16m (vs 25m)
GP  S$11m  (vs 16m)
NP  S$0.8m (vs -3m)

The Covid-19 pandemic continues to bring about a highly uncertain economic climate. The evolution of the virus and the fluctuating infection rates do not bode well for businesses in the the Food & Beverage sector that has been one of the most adversely affected industries.

The Group operates primarily in Singapore and Malaysia. In Singapore, at the time of writing, the Government has re-introduced tighter social control measures that will directly and significantly affect dine-in services, consumer demand and market sentiment. The business outlook in Malaysia is more worrying as the country battles to contain the infection rate. The Malaysian government again recently extended restrictive measures with the announcement of the nationwide Movement Control Order (“MCO”) till 7 June 2021. Further extensions of such restrictive measures cannot be ruled out. Movement restrictions of people together with the associated uncertainties on business operations, will have a significant impact to the Group’s operations.

Having deliberately progressively reduced the number of physical stores, the Group is in a more nimble and agile position to recalibrate its business strategy and direction. Nonetheless, depending on the duration of the Covid-19 pandemic and its continued negative impact on the economy, the Group expects that the financial impact for the rest of the financial year ahead will be contingent on the length and intensity of the economic downturn and the speed of the subsequent economic recovery. The Group will continue to improve its performance by building on its online sales channels and efforts to digitalize its business while exploring new market opportunities, and will also continue to manage business costs cautiously through optimizing operational efficiency.

https://links.sgx.com/FileOpen/Announcem...eID=666531

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

Sakae@11
impairment due to MCO
https://links.sgx.com/FileOpen/SHL%20-%2...eID=682554


https://drive.google.com/open?id=16vSezn...5rNDWNwmg6

Gratitude.

[dreamybear]

I wonder what cld be possible conditions for such premiums .... 

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Sakae’s executive chairman sells partial stake at 95.3 cents each vs last traded price of 9.9 cents
https://www.theedgesingapore.com/news/co...aded-price
"Sakae Holdings’ executive chairman and controlling shareholder, Douglas Foo, plans to sell 27.79 million shares for $26.5 million.....

The purchase price works out to 95.3 cents per share, a very significant premium over Sakae Holdings' last traded price of 9.9 cents at close of July 18....

"Completion of the proposed sale is subject to the fulfilment of certain conditions precedent provided in the agreement," the company says on July 19...."

[weijian]

I wonder what cld be possible conditions for such premiums .... 

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Sakae’s executive chairman sells partial stake at 95.3 cents each vs last traded price of 9.9 cents
https://www.theedgesingapore.com/news/co...aded-price
"Sakae Holdings’ executive chairman and controlling shareholder, Douglas Foo, plans to sell 27.79 million shares for $26.5 million.....

The purchase price works out to 95.3 cents per share, a very significant premium over Sakae Holdings' last traded price of 9.9 cents at close of July 18....

"Completion of the proposed sale is subject to the fulfilment of certain conditions precedent provided in the agreement," the company says on July 19...."

Based on last check, the wonderful deal for Chairman Foo was delayed to end October 2023. As of today, no announcement of a change in shareholding has been made and so we can assume that the deal has not been made (yet). However, the proposed buyer's representative is still on the BOD since no announcement of resignation/cessation has been made too. As such, I guess there is still a chance for it to go through I suppose?

Sakae Holdings' FY24 results resume its mid-teens slide in revenue, indicating that its FY23's results (ended June2023) were probably boosted by the re-opening post covid in April2022, on a YoY basis compared to FY22's.

It definitely hasn't been easy for full-service restaurants with overseas travel a strong competitor for the local consumer's wallet share and the GST increase demanding more value-for-the-buck.

FY23 barely broken even from cashflow perspective and FY24 records -1.3mil FCF (OCF minus CAPEX minus lease payments) from its restaurant ops. The repayments from GREIH have completed and will cease to have any contributions in FY25 onwards. I wonder if any monetization of 28 Tai Seng will be done next?

FY24 results:
https://links.sgx.com/FileOpen/Announcem...eID=817361

[ghchua]

Hi weijian,

I think you have hit the nail on the head with respect to the value of this stock. Yes, restaurant business is tough and it is reflected in the valuation of the stock in the market as it is trading at way below its reported NAV. 28 Tai Seng valuation had been increasing, so the logical question would be whether they would unlock the value. It is a difficult question for me to answer, as they do have operations in the building for office, warehouse and central kitchen production.

[weijian]

Hi weijian,

I think you have hit the nail on the head with respect to the value of this stock. Yes, restaurant business is tough and it is reflected in the valuation of the stock in the market as it is trading at way below its reported NAV. 28 Tai Seng valuation had been increasing, so the logical question would be whether they would unlock the value. It is a difficult question for me to answer, as they do have operations in the building for office, warehouse and central kitchen production.

hi ghchua,

To expand on your question, I took a quick look further.

Unfortunately, the rental income is classified under "others" and not part of revenue. Hence we are not able to know how much rental it may have to pay for its own occupancy needs, if it had to do so.

The quick check also reveals that it received a ~2.6mil of net rental income from 28 Tai Seng in FY23 (information only available in annual report). So if we were to net this amount together with the interest paid (~1.6mil which I assume is for the mortgage), that would mean that the rental income is providing ~1mil of positive FCF.

Therefore, the restaurant ops has been cash-flow negative for a couple of years now (rather than just turning negative in FY24 as I thought).

Would be interesting to see what happens next. My best bet is that our serial entrepreneur Chairman Foo will keep pivoting to explore new dining concepts to make money, since 28 Tai Seng's rental income helps to cushion the impact. He could also do a refinance of 28 Tai Seng to extract equity to extend his runway.

[weijian]

I wonder what cld be possible conditions for such premiums .... 

-------

Sakae’s executive chairman sells partial stake at 95.3 cents each vs last traded price of 9.9 cents
https://www.theedgesingapore.com/news/co...aded-price
"Sakae Holdings’ executive chairman and controlling shareholder, Douglas Foo, plans to sell 27.79 million shares for $26.5 million.....

The purchase price works out to 95.3 cents per share, a very significant premium over Sakae Holdings' last traded price of 9.9 cents at close of July 18....

"Completion of the proposed sale is subject to the fulfilment of certain conditions precedent provided in the agreement," the company says on July 19...."

Based on last check, the wonderful deal for Chairman Foo was delayed to end October 2023. As of today, no announcement of a change in shareholding has been made and so we can assume that the deal has not been made (yet). However, the proposed buyer's representative is still on the BOD since no announcement of resignation/cessation has been made too. As such, I guess there is still a chance for it to go through I suppose?

Oh no! The proposed buyer's rep has resigned from the BOD citing "To focus on his busy work commitments." I hope there is a replacement from Makara to keep the hope alive..

CHANGE - ANNOUNCEMENT OF CESSATION::RESIGNATION OF NON-EXECUTIVE AND INDEPENDENT DIRECTOR

Mr Ali Ijaz Ahmad has resigned as Non-Executive and Independent Director of the Company with effect from 7 November 2024.

https://links.sgx.com/1.0.0/corporate-an...19865596f3