Broadway Industrial Group's stock had a dizzying 64% rally today (closing price: 7.2 cents) after it was reported that DCG Capital Fund considered it a "deep value" stock (see:  ).

This "deep value" is reflected in Broadway's net asset value of 16.68 cents per share as at end-March 2019.

Notably, Broadway has land use rights and a factory -- classified on its balance sheet as "assets held for sale" -- in Shenzhen, which it has been seeking a buyer for.

They are valued at S$48.8 million and S$55.6 million by two valuers (see page 65, annual report 2018).

These valuations are more than 2X the assets' book value of S$19.4 million, which further means the NAV is understated.

hdd arm 300Broadway manufactures actuator arms for hard disk drives. An actuator arm pulls data off magnetic disks or writes new data on them.Operationally, Broadway's current business is a challenging one: Hard disk drives are on a downtrend, overtaken by the far superior solid state drives (SSD). 

Broadway's recent performance has been choppy. It reported $1.7 million in net profit for FY2018, turning around from a huge $15.8 million net loss the year before.

In 1Q2019, however, it reported a net loss of $5.1 million - but said that the outlook for the industry is expected to "stabilise in 2H2019". 

As the share price had been sliding, the company bought back its shares, as can be seen in this 1-year chart:   

buyback7.19Majority of the shares bought back by Broadway were priced at above 8 cents per share. Source: NextInsight compilation

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings2.3500.050
Avi-Tech Electronics0.260-0.005
Best World1.7400.040
Broadway Ind0.095-0.001
China Sunsine0.380-0.010
Delfi Limited0.9400.010
Food Empire1.400-0.020
Fortress Minerals0.280-
Geo Energy Res0.350-0.010
GSS Energy0.027-
Hong Leong Finance2.4800.010
Hongkong Land (USD)3.080-0.070
ISDN Holdings0.310-0.010
IX Biopharma0.0460.005
Jiutian Chemical0.0250.001
KSH Holdings0.250-
Leader Env0.050-
Medtecs Intl0.1320.001
Nordic Group0.335-
Oxley Holdings0.0910.001
REX International0.138-0.008
Sinostar PEC0.125-0.010
Southern Alliance Mining0.600-
Straco Corp.0.500-
Sunpower Group0.220-
The Trendlines0.084-0.001
Totm Technologies0.0220.001
Uni-Asia Group0.800-0.015
Wilmar Intl3.320-0.040
Yangzijiang Shipbldg1.780-

We have 1354 guests and 2 members online

rss_2 NextInsight - Latest News