Nam Lee Pressed Metal

[GreedandFear]

I am little bit sceptical about Namlee result though. The company actually had cash outflow of $12 mils even after taking in $ 5 mil bank loan. They had not borrowed for long time and this has troubled me.

Cash is now significantly reduced to $23 mil and we need to keep watching this figure together with inventories and debtors at the year end result.

I am hoping that increase revenue are more from Carrier business and less from local construction customers.

Agree that is needs to be watched but historically, Nam Lee has had cash outflows as they get new contracts and then significant inflows upon completion, so probably no cause for alarm. If I remember correctly, at its AGM, the company did also point that they would carry more inventory for the Carrier business.

Vested

[BlueKelah]

I am little bit sceptical about Namlee result though. The company actually had cash outflow of $12 mils even after taking in $ 5 mil bank loan. They had not borrowed for long time and this has troubled me.

Cash is now significantly reduced to $23 mil and we need to keep watching this figure together with inventories and debtors at the year end result.

I am hoping that increase revenue are more from Carrier business and less from local construction customers.

Agree that is needs to be watched but historically, Nam Lee has had cash outflows as they get new contracts and then significant inflows upon completion, so probably no cause for alarm. If I remember correctly, at its AGM, the company did also point that they would carry more inventory for the Carrier business.

Vested

give mgt. some credit, pretty sure they have not put on more debt and increased inventories so much for nothing. These are old timers with a legacy passing on to their kids.

Namlee has been burning a lot of cash to ramp up inventories and PPE in the past few quarters. This is very unusual in the current depressed economic conditions, so orders must be coming in quite well. Expect some good profits and revenue to be coming online pretty soon in the next few quarters.

-v-

[snapsnap]

26 November, 2015 - Stocks with Momentum : Nam Lee Pressed Metal Industries
http://sdb.theedgemarkets.com/2015/SMR/S...xq1dyw.pdf

[slowandsteady]

Great set of results. Dividend increased from 1.5c to 2.5c which is 8% yield on last done price. PE below 6, net cash, 80% YOY profit growth. Good job!

Now I've got to update my excel to look at QOQ numbers. 

[GreedandFear]

Very strong results. 

Revenues
2015 : 164,042
2014 : 141,452
2013 : 170,798
2012 : 155,193

Gross Profit 
2015 : 37,285 
2014 : 23,072
2013 : 25,834
2012 : 35,018

Gross Profit Margins
2015 ; 22.7%
2014 : 16.3%
2013 : 15.1%
2012 : 22.6%

Net Profit
2015 : 12,940
2014 :  7,150
2013 :  9,028
2012 : 13,874

Net Profit Margins 
2015 : 7.9%
2014 : 5.1%
2013 : 5.3%
2012 : 8.9%

Note that net profit for 2015 was flattered by a lower tax rate due to Malaysian tax incentives in connection with their new Malaysian factory for the refrigerated container business. However, looking at quarterly gross margins, the company does seem to have executed a great turn-around :

Quarterly Gross Profit Margins

Q1 2014 : 13.9%
Q2 2014 : 18.4%
Q3 2014 : 12.3%
Q4 2014 : 20.2%
Q1 2015 : 20.9%
Q2 2015 : 18.2%
Q3 2015 : 24.2%
Q4 2015 : 26.3%

Dividend of 2.5  cents per share. Up from 1.5 cents the prior year and higher than what I believe was the previous high of 2 cents in 2012 (?).

As usual, the company does not provide much colour except to say that the construction business is tough but they continue to expect to be profitable in the aluminium business. My read of that is that the whole turn around is due to the refrigerated container business and the new factory in Malaysia (read my post from the Jan 2015 AGM for more details).

It has been a long ride but hopefully we are now poised to reap the rewards  

Vested.

[BlueKelah]

As expected the profits and revenue are rolling in now as a result of previous capex and inventory increase.

However the super low BDI is still a worrying indicator of global shipping and hence container market, but maybe carrier is replacing its old container units

Lets hope the china blues doesnt dampen market too much on monday and allow namlee a chance to gap up

V

sent from my Galaxy Tab S

[dydx]

With such a solid profit increase in the FY15 (ended 30Sep15) full-year result released last Friday.....
http://infopub.sgx.com/FileOpen/Nam_Lee_...eID=380294
and a higher total $0.025/share (vs. $0.015/share in FY14) in final/special dividends declared, Mr Market has started to cheer on Nam Lee this morning.

With the latest 30Sep15 NAV/share at $0.514 - including a net cash/share at $0.162 - and full-year EPS at $0.05357, Nam Lee at the last done share price of $0.325 remains quite clearly grossly underpriced.

[sgmystique]

With such a solid profit increase in the FY15 (ended 30Sep15) full-year result released last Friday.....
http://infopub.sgx.com/FileOpen/Nam_Lee_...eID=380294
and a higher total $0.025/share (vs. $0.015/share in FY14) in final/special dividends declared, Mr Market has started to cheer on Nam Lee this morning.

With the latest 30Sep15 NAV/share at $0.514 - including a net cash/share at $0.162 - and full-year EPS at $0.05357, Nam Lee at the last done share price of $0.325 remains quite clearly grossly underpriced.

Well this is one situation where it is very easy to agree with you dydx 

A few more quarters of solid performance and I am sure Nam Lee will come into the eyes of maybe a few more investors!

[BlueKelah]

With such a solid profit increase in the FY15 (ended 30Sep15) full-year result released last Friday.....
http://infopub.sgx.com/FileOpen/Nam_Lee_...eID=380294
and a higher total $0.025/share (vs. $0.015/share in FY14) in final/special dividends declared, Mr Market has started to cheer on Nam Lee this morning.

With the latest 30Sep15 NAV/share at $0.514 - including a net cash/share at $0.162 - and full-year EPS at $0.05357, Nam Lee at the last done share price of $0.325 remains quite clearly grossly underpriced.

Well this is one situation where it is very easy to agree with you dydx 

A few more quarters of solid performance and I am sure Nam Lee will come into the eyes of maybe a few more investors!

you mean speculators and traders and analyst. We will probably need their help to push up the share pricie though..

[sgmystique]

With such a solid profit increase in the FY15 (ended 30Sep15) full-year result released last Friday.....
http://infopub.sgx.com/FileOpen/Nam_Lee_...eID=380294
and a higher total $0.025/share (vs. $0.015/share in FY14) in final/special dividends declared, Mr Market has started to cheer on Nam Lee this morning.

With the latest 30Sep15 NAV/share at $0.514 - including a net cash/share at $0.162 - and full-year EPS at $0.05357, Nam Lee at the last done share price of $0.325 remains quite clearly grossly underpriced.

Well this is one situation where it is very easy to agree with you dydx 

A few more quarters of solid performance and I am sure Nam Lee will come into the eyes of maybe a few more investors!

you mean speculators and traders and analyst. We will probably need their help to push up the share pricie though..

I went through the Top 20 shareholders list since 2011 yesterday and it looked quiet stable. Seems like the big stakeholders are content holding on to their shares over the years and collecting regular dividends which give a decent yield on their investment. As far as the share price moving up is concerned, once it happens the price will stay up unless their performance takes a big hit. Am looking forward to a consistent performance from the business moving forward.