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(15-10-2014, 08:57 PM)Yoyo Wrote: Hi FatBoi
AR Days has increased from 62 days (2Q2014) to 72 days (2Q2015). Likewise 1Q2015 registered 72 days. May be inferred as more lenient on collection in pursuit for higher sales. Trying to gauge the effective of AR management. Nevertheless, agreed that it is not a concern at the moment.
Other receivables increased by 1.1m from 4Q2014, claimed to be mainly due to sales of scrap metal. Considering scrap sales of 652k (4Q2014), 775k (1Q2015) and 880k (2Q2015), given that the 2Q2015 sales (assumed substantial of 880k) is made near end of financial period ie Aug 2014, unless the debt of 652k has been settled by end Feb 2014, this hardly suffice as the main cause of the increase. Just making an observation. Not so much on the dollar quantum, but curious on its breakdown.
Agreed that good result sustainability is of utmost importance. Thanks for the P/L pointers. The first pointer is a tough one, yes, there is a recovery, will last how long, it is everybody guess.
Seldom post, as not good with writing. Learning to post. Thanks for your post and guidance.
Hi Yoyo, just by your reply, I can say that your writing is good and you are humble, please keep posting. I am no expert (hope I did not mislead anyone into thinking that I am, just another amateur stock investing blogger in Singapore). We learn from each other and everyone else at valuebuddies. Thanks to your initial post, it sparked my curiosity into digging deeper, that's all.
Back to Cheung Woh, it appears that barring unforeseen circumstances, they will have a very much improved 2015 in terms of earnings. But given the volatility in HDD business (demand fluctuates depending on competiting technology such as alternative memory devices), useful to keep a closer look. If you are vested in this counter, Cheung Woh might be more a "value trade" type of investment rather than "buy and hold".
A stock well bought is half sold - Ben Graham
Price is the most important factor to use in relation to value - Walter Schloss
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Hi FatBoi
Thanks for your words of encouragement and advice. Will certainly keep a closer watch.
(vested)
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Cheung Woh has just posted a set of rock-solid 3Q result…..
http://infopub.sgx.com/FileOpen/3Q2015Re...eID=331108
It appears that near-term momentum for business volume and profitability from both the HDD and Precision Metal Stamping segments remains strong, and Cheung Woh is poised to post solid increases in both Revenue and NP for this FY15 ending 28Feb15. Conceivably, full-year EPS could hit $0.04, and 28Feb15 NAV/share should come close to $0.34.
I certainly look forward to a much better Final dividend for FY15 (vs. $0.002/share in FY14)..
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Cheung Woh has ceased their interest in becoming a property developer in Malaysia.
http://infopub.sgx.com/FileOpen/Disposal...eID=331944
More cash in the bank now. Balance sheet improving. Less risk of diversifying for the worse into the unknowns. Sounds good to me.
It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy. –George Lorimer
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FY15 (ended 28Feb15) full-year result just out......
http://infopub.sgx.com/FileOpen/Smartfle...eID=326976
A solid business and profit recovery indeed, including returning to an above-average profitability. A $0.01/share Final dividend (vs. $0.002/share previously) declared. Including the $0.005/share Interim dividend paid, total payout comes to $0.015/share for FY15.
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20-04-2015, 08:39 PM
(This post was last modified: 20-04-2015, 08:58 PM by BlueKelah.)
(20-04-2015, 06:24 PM)dydx Wrote: FY15 (ended 28Feb15) full-year result just out......
http://infopub.sgx.com/FileOpen/Smartfle...eID=326976
A solid business and profit recovery indeed, including returning to an above-average profitability. A $0.01/share Final dividend (vs. $0.002/share previously) declared. Including the $0.005/share Interim dividend paid, total payout comes to $0.015/share for FY15.
Had a look at the results,
Whilst return to profitability is good (6m+), half of this quarter gains are also due to translational gains(3m+). Taking that out, profit is only about 0.05/q which would be 2c per year estimated. However EPS is 4c+ for this FY so (was there any one time gains this past year?) Also it seems if the USD depreciated against the SGD, then earnings could be wiped out by translational losses.
Other things noted :
Share of results of associate companies has become negative (which associate starting to bleed?)
Debt has doubled from 2.902 to 6.466mio.
Property investment increase 1.294 to 2.722
Seems like the profitability has also been factored into the share price with a rise from 15c levels to 20c+ this past year.
with bulk of sales to Thailand and Malaysia, looks like Seagate is their major customer. Seagate had moved most of their production to these countries in 2009 from Singapore.
HDD market looks like recovering and stable next few years so should do well in the near future.
HDD Annual Unit Shipments Increase In 2014
-not v on radar-
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FY15 (ended 28Feb15) AR is out and makes good reading for those interested in Cheung Woh's recovering business and financial fortune, and the coming $0.01/share final dividend...
http://infopub.sgx.com/FileOpen/AnnualRe...eID=355389
I am also encouraged by Cheung Woh's current plans to increase production capacity in both its existing factories in Penang and Johore.
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10-06-2015, 08:24 PM
(This post was last modified: 10-06-2015, 08:31 PM by BlueKelah.)
Shipments of hard disk drives hit multi-year low in Q1 2015
Looks like just a bump in business for q3/q4 and now back to downtrend. From the financials their main customers should be Seagate and Western Digital which are the top players in Thailand HDD industry.
Seagate share price on nasdaq ($52.6) also seems on a downtrend after maxing out last may at $59.63
Seagate Q3 FY15 Earnings: Higher Profit Despite Missing On Revenue Guidance
Div yield at this price doesn't seem so attractive to buy in yet. Not sure why but debt levels increasing despite having usable cash on hand.
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So it is indeed quite strange that Cheung Woh could record strong sales and profit increases in 2H (ended 28Feb15), when overall shipments volume for the entire global HDD market experienced a decline by 9.5% YoY and by 11.3% QoQ in Q1/2015 mainly due to sharp declines of sales of both PC and non-PC HDDs. And Cheung Who is planning to increase production capacity in Penang and Johore.
But we should also note that not all HDDs are made the same way, and demand and the market of enterprise-class HDDs is steadily expanding fuelled by the growth of cloud datacenters. Since the world needs a lot of capacious hard drives, it is likely that enterprise HDDs will flourish for many years to come. In the category of enterprise HDDs, the storage capacity now goes to 6 TB...
http://www.wdc.com/en/products/internal/enterprise/
In such HDDs, usually there are more discs and therefore also more air combs, which Cheung Woh is an expert producer of such high-precision components, including VCM (voice coil motor) plates.
It is also relevant to note that Cheung Woh has restarted paying out 2 dividends in FY15, totalling $0.015/share.
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1Q result just out....
http://infopub.sgx.com/FileOpen/1Q2016Re...eID=359675
A very respectable 57.6% YoY increase in PBT to $3.957m based on a healthy 11.1% YoY increase in Revenue to $21.227m
It looks like the best is yet to be for Cheung Woh's HDD components and Precision Metal Stamping components businesses.
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