Armstrong Industrial Corporation

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#1
Over the past 2 weeks, Armstrong has repurchased 5.598 million shares from open market thereby reducing the total number of outstanding units to 494.130 million units. Share price closed at 24.0 cents.

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#2
The AGM of Armstrong Ind is on next Monday

http://info.sgx.com/webcorannc.nsf/Annou...endocument

FY2011 is a difficult year for Armstrong.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#3
The 2012 Q1 result will be announced on 15 May 2012

http://info.sgx.com/webcorannc.nsf/Annou...endocument

This is the 1st FR after the Thailand flood recovery activities. Looking forward for better news from this FR.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#4
http://info.sgx.com/webcorannc.nsf/Annou...endocument

Q1FY2012 result is out today.

The revenue almost recover (-7%) to pre-Japan earthquake level, but gross profit suffered with only 8.5 Mils, a drop of -37% from pre-Japan earthquake level.

With the help of 2.3 Mils insurance claim and net Fair value adjustment for derivative contracts of 2.7 Mils, Net Profit attributable to Owner increase by 27% to 5.1 Mils. The EPS is 1.03 cts (1QFy2012) vs 0.88 cts (1QFY2011)

Armstrong is on track in its recovery path. The following statement in FR discloses the expectation of FY2012 result.

"Barring any unforeseen circumstances, in view of the global Data Storage recovery, the recovery in the Group’s Thailand operations and the growing Chinese automotive market, the Group expects to post similar revenue but higher net profit in FY2012 compared to FY2011.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#5
I have 2 points on the 1Q results:
1) GP has fallen (-36.7%) much too fast with Turnover (-7.1%)! There could be some basic weaknesses in the business. As this is on a group basis, it does indicate the management did not do much or enough to shift the reduced production business volume around to balance things up in order to keep overall efficiency higher.

2) If we take out the $2733k net fair value adjustment gain for derivative contracts, and the $2269k from insurance claims, 1Q's PBT would have come to only $1178k! This is very small when compared to a group revenue of $52.3m!
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#6
(16-05-2012, 04:37 AM)dydx Wrote: I have 2 points on the 1Q results:
1) GP has fallen (-36.7%) much too fast with Turnover (-7.1%)! There could be some basic weaknesses in the business. As this is on a group basis, it does indicate the management did not do much or enough to shift the reduced production business volume around to balance things up in order to keep overall efficiency higher.

2) If we take out the $2733k net fair value adjustment gain for derivative contracts, and the $2269k from insurance claims, 1Q's PBT would have come to only $1178k! This is very small when compared to a group revenue of $52.3m!

First of all, I have to admit that Armstrong is far from full recovery from the Thai flood yet.Tongue The statement of "Armstrong is on track in its recovery path" is to match the progress with my expectation Big Grin I am expecting Armstrong full recovery toward end of FY2012.

Let's back track on dydx concerns. I am not part of the management team, so all below is IMO as a shareholder.

IMO, the increase in COGS does not conclude that in-efficiency in balancing of the production. Two (2) factories out of Four (4) been affected in Thailand flood, and full recovery in still on-going. The factory overhead of the two (2) factories continue to be incurred, even production been shifted to other factories. On top of that, not full capacity been run in other factors as well due to the supply chain disruption. One of the clue is revenue down (-7%), inventory also down (-14%). Armstrong is geared up for growth before the Japan earthquake, so excess capacity is expected although not desired.

The PBT will suffer with reduced gross profit while other expense remain the same. I am taking as Armstrong is gear up and ready (in distribution network and staffing) toward the opportunities present ahead after the "black swan" events.

Too optimistic! I am prepare for the worst and hoping for the best as a shareholder. Big Grin

(vested)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#7
First Quarter 2012 Results Briefing Presentation

http://info.sgx.com/webcorannc.nsf/Annou...endocument
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#8
Armstrong Ind resumed its share-buy-back.

http://info.sgx.com/webcorannc.nsf/Annou...endocument

461 lots @ 0.2693 been bought-back yesterday
Total 461 lots since the last AGM mandate on April 2012

Number of treasury shares held after purchase 24,158 lots.

Total about 5% been bought-back so far. I am sure the management team is thinking that current market price is under-value.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#9
Armstrong Ind. Corp has just announced that it would release its Second Quarter Financial Statements for period ended 30 June 2012 on 13 August 2012. An analysts' briefing has been scheduled on 14 August 2012.

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Armstrong Ind. Corp is still recovering from the Thai flood. The new two factories are in the process to reach-up the efficiency.

With the cash reserve of S$29.5 mils as in Q12012, it is reasonable to expect a interim dividend. In last FY2011, interim dividend is cancel due to Japan earth-quark and Thai flood.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#10
The latest news about car sales in China, after the China-Japan dispute

http://www.todayonline.com/World/China/E...slands-row

"The dramatic fall-off in demand for Japanese vehicles has been an unexpected boon for other foreign brands. Last month, BMW's China sales surged 55 per cent, Audi by 20 per cent and Hyundai by 15 per cent."

Volkswagen is key customer of Armstrong, will it's supply to Volkwagen boon together with others foreign brands?

We will only know the impact upon end year report around early next year.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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