Latest Half Year Result

Net Profit After Tax: S$5.1 million
Cash onhand : S$40 million
Market Capitalisation : S$41 million based on S$0.18
Dividend declared: 0.8 cents per share.
Gearing : 0.01 (almost DEBT FREE)

If you managed to buy at S$0.18, you are getting the whole operation which generate an annual profit of $10 million (if it can match the same result for 2nd half) for free since cash onhand is equal to market capitalisation.

Managed to buy a few lots at $0.21... the price has since move up to $0.23

hey, this looks good.

1 small aspect: do u know what is the meaning of

"Changes in inventories of FG & WIP'?

it went from $2 m to negative $1m.

Hi

"Changes in inventories of FG & WIP'?

FG - Finish Good
WIP - Work in progress.

If my guess is right, this implied reduction in the inventory level. Instead of stocking up more goods, it is reducing its inventory level in term of both the finish goods and work in progress.

after reading the announhcement, it appears to me that they hv cut a lot of operating expenses. Became lean & even skinny!

the question then is how abt growth in revenue going fwd? they can or not?

on the whole, looks like a stock to put some money in altho it has run up a lot since March.

last time 9 cents only!

Hi Harlequin,

I think this is a stock that is undervalued in term of valuation. With cash onhand almost match the share price.

So investor basically get the company that generate $150 million revenue with $4.5 million (last year result) for Free. This year result is expected to be better than last year with 1st half already posted S$5.1 million profit.

For the revenue and expansion, the company is looking at selectively upgrading their equipment, infrastructure as well as M&A to increase sales and improve efficiency.

While it might not be too exciting on the growth story but it is definitely harder to find a company with cash onhand = share price.
This give us a great margin of safety and also higher comfort level as compare to those "undervalued" S-chips.

Felt a pity that didn't catch it at 9 cents but i think the share is worth much more 2-3 years down the road... even zero growth in revenue and profit, it has good history of yearly dividend of 0.8 cents. 4% yield in this case.

Regards
erelation

thanks sir!
i hv bought the stock a few mins ago

i see the cash of $40 m and compare it with the market cap of just over $40 m, and that did the trick.

it's a no-brainer!