Cheung Woh Technologies

[RBM]

Some interesting trades in Cheung Woh's shares today. And yes ......... I am one of those who are guilty of looking at a days trading in counters that I hold ..... and sometimes it gives me a buzz - for someone of my age, it means I don't have to inbibe in so much fortified wine.

Any way ............ in particular, one trade of 170,000 CWT shares bought from a seller at S$ 0.215 caught my eye. The CWT closing share-price was S$ 0.193 but this reflected a one lot trade in the closing minutes of today's SGX trading session. I do hope we start to see some appreciation in CWT's share price, for the benefit of existing CWT shareholders and to demonstrate the benefits of CWT's sustained share-buy-back effort. CWT has bought back over 2% of the company's shares and this has helped to establish a floor at the S$ 0.180 level.

Vested,
RBM

[dydx]

Without any doubt, the massive share buy-back by the company so far at the low $0.18 level will benefit the remaining shareholders, including the Law family as the controlling shareholder. With fewer shares in the free-float will also mean that should a GO to privatize Cheung Woh ever happen, it will be an easier exercise for the buyer.

[RBM]

Nice message on Adampak earlier this evening dydx - thank you (although I'm not vested!).

Also pleasing - from an existing shareholder perspective - that Cheung Woh's share price notched a ~ 10.5% gain today. Its share price closed at S$ 0.21. I suspect the Seagate results were also a factor at play for Cheung Woh. I very much agree with the contents of dydx's earlier posting on this thread of 27th January - and bravo to the Law Family.

Vested,
RBM

[dydx]

Cheung Woh has completed the restructuring and partial sale of its previously majority-owned PRC-based metal car parts business under Suzhou Tysan Precision Engineering Co., Ltd ("TP").....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

TP is now a 33%-owned associate - i.e. the heavy bank borrowings in the company will no longer be consolidated into Cheung Woh's B/S, which should now be close to debt-free.

[brattzz]

with the GO on adampak, maybe it's time to re-look CWT which has been puffing along steadily?

[RBM]

In the last couple of weeks on the SGX there has only been one trade of Cheung Woh shares - and that was of 10 lots only - and this followed several weeks of much reduced trading volumes. Recent Bid-Offer spreads have sometimes been quite large. We have not seen any positive knock-on effects of the Adampack GO on Cheung Woh's share price - personally speaking, I believe they pursue different technology offerings and there are other key differences, so I'm unsure if we should anticipate any such knock-on.

I believe existing Cheung Woh shareholders have their BoD to thank for successfully putting a firm floor under Cheung Woh's share price by way of their sustained, high-volume and committed share buy-back programme. And it was good to see the Chinese Portfolio action successfully close after a predictably protracted approval process - reference dydx's 22nd February posting on this thread.

I am hopeful for some positive news this coming Thursday 26th April pm, when Cheung Woh announces their Full Year results - I say "hopeful" and "positive" because I hope we see some enhanced level of returns to shareholders arising from the closure of the Chinese portfolio action. While Cheung Woh has been clear on the financial drag resulting from the Thai floods + Japanese Tsunami + Solyndra Bankruptcy + FE losses, it will be heartening to hear of a projected strong recovery for the HDD business. And we'll hopefully see heightened liquidity levels in Cheung Woh's stock after Thursday.

Vested

with the GO on adampak, maybe it's time to re-look CWT which has been puffing along steadily?

[dydx]

The generous total dividend of $0.011/share (Final + Special) for FY12 (ended 28Feb12) will be paid on 20Jul12.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

[heifien91]

Was just wondering who are the competitors for CWT? Based on most indicators, CWT is pretty undervalued even at the current price of 0.22 however wanted to compare its PE ratio with its competitors.

[CityFarmer]

Was just wondering who are the competitors for CWT? Based on most indicators, CWT is pretty undervalued even at the current price of 0.22 however wanted to compare its PE ratio with its competitors.

I am talking a quick peek into Cheung Woh Technologies. The ID in SGX is CheungWoh, instead of CWT. CWT is another logistic company

The one catch my attention is the EPS (ttm) of 0.21 cts, with price of 22 cts, its PE is ~100 . Probably due to temporary depressing factors?

With margin in single digits and PE about 100, i am pretty sure it is over-value now.

The plus points are high dividend annual yield of 7%, low long-term debt, and low PB

Please highlight if i miss out any important points.

[RBM]

With reference to CityFarmer's post on this thread of earlier today.......

I would respectfully disagree that Cheung Woh is currently over-valued. Cheung Woh's recent FY 2012 results were adversely impacted by the four-pronged "perfect storm" of i) Thailand's floods + ii) the Japanese Tsunami + iii) the high profile Bankruptcy of a key high volume customer (Solyndra) + iv) (accounting) FE losses arising during the drawn-out Chinese approval process of Cheung Woh's Tysan portfolio action.

Readers of this particular VB thread will recall that, prior to these almost-simulataneous events, Cheung Woh typically traded on a low single digit P/E ratio. I suspect that once the impact of this "perfect storm" is broken out, the value that Mr. Market currently puts on Cheung Woh will be seen to be on the low side. Two other realities, in addition to the low-debt point that you mention CityFarmer, lead me to this conclusion, i.e. .......

a) the recent (proposed) dividend announcement, i.e. including special dividend arising from last (financial) year's Chinese portfolio action, corresponds to a dividend yield exceeding 7% at the current share price. Hardly the pay-out of a struggling over valued company!

b) the confidence that Cheung Woh's BoD has demonstrated in the company's prospects by virtue of its sustained high volume share buy-back campaign - amongst other positive outcomes of this is the "effective floor" (at S$ 0.18 per share) that has been put under Cheung Woh's share price.

I would bet that Cheung Woh will likely eventually be seen as one of those cases where reading too much into (and making investment decisions based on) a short term "snapshot P/E ratio" leads to the wrong conclusions. On another VB thread, one forummer asked "has anyone ever made money from a P/E 100 share?". Lets watch what Cheung Woh does in the coming year or so.

There have been some insightfull posts made by other forummers on this particular VB thread....... I would encourage interested forummers to review some of dydx's earlier posts on this VB thread - particularly the 22nd December 2011 post. For a very good, more skeptical piece, I would suggest D123's 9th September 2011 posting is worth the read.

Time will tell...................

Vested.

I am talking a quick peek into Cheung Woh Technologies. The ID in SGX is CheungWoh, instead of CWT. CWT is another logistic company

The one catch my attention is the EPS (ttm) of 0.21 cts, with price of 22 cts, its PE is ~100 . Probably due to temporary depressing factors?

With margin in single digits and PE about 100, i am pretty sure it is over-value now.

The plus points are high dividend annual yield of 7%, low long-term debt, and low PB

Please highlight if i miss out any important points.