Nam Lee Pressed Metal

[changwk]

Nam lee is the only 3rd party frame supplier to a major fridge
Container manufacturer. Does anyone know who that might be?

[dydx]

Nam lee is the only 3rd party frame supplier to a major fridge
Container manufacturer. Does anyone know who that might be?

It is my understanding that Nam Lee has remained - for many years now! - the sole supplier of aluminium frames (used to mount the container refrigeration units) to Carrier Transicold, the leading global force in transport refrigeration.....
http://www.transicold.carrier.com/Carrie...Transicold

[changwk]

Hi dydx

Thanks for the info. It's encouraging to know that Nam Lee is able
To keep this customer happy for so nany years. . A testament to the capability of management
and quality of their product.

[Salty]

6.9mil population has namlee are going to be good friends for awhile.

[dydx]

The approved total $0.02/share - Final: $0.01/share; Special: $0.01/share - dividends will be paid on 27Feb13....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

[darrenyc]

FY131Q report doesnt look too good...revenues dipped by 27% due to headwinds in Europe and bottomline was therefore affected by 26%...

although Management has mentioned they will focus more on local building activities, can this help to take up the slack in the european side of things?

[Salty]

My guess is that the earnings are affected due to the cyclical nature of the shipping business. However, it was somewhat reduced due to higher buildings locally. which i also believes has higher margins. (ie higher gross and net margins) The real impact seems to be the labour cost increase here.

The cyclical side of the business is undergoing a natural effect which i believe would have come back or even pend up demand in the future. Thus is not a real worry.
I am also guessing this year earnings might be similar to 2011 as 2012 is exceptional on the tax.

Without the actual breakdown of the revenue it seem hard to really understand what is going on really, and management comment is the usual few liners.
Nevertheless, NAV went up. Which is most important as the attractiveness of this counter is the NAV vs the stock price and the somewhat decent earnings that turns into real cash.

[georgelee]

so...to buy or not to buy?

[Salty]

You tell me

[dydx]

I think it is naive or even rather silly to believe that just because of a dip in the 1Q's Reveve and profit numbers.....
http://info.sgx.com/webcoranncatth.nsf/V...B0034C1DE/$file/NamLee-1Q2013.pdf?openelement
, Nam Lee's business and profits going forward are going to be doomed.

I suppose we should bear in mind the following:
1. Nam Lee's business is well established and serves many segments/customers: HDB housing programme; Carrier Transicold's global requirements for aluminium frames as its sole exclusive supplier; commercial buildings projects (e.g. supply/instal of external aluminium cladding for "Jem" coming up in Jurong East for Lend Lease...
http://www.lendlease.com/en/asia/singapo...s/jem.aspx
); infrastructure projects (e.g. supply/install of wall-cladding for the tunnels of the Marina Coastal Expressway for LTA...
http://www.lta.gov.sg/content/ltaweb/en/...y-mce.html
); industrial buildings projects; private housing projects, etc.

2. Nam Lee's Revenue and profit recognition on the bigger contracts are subject to the construction progress and timings of the underlying projects which are not within their control.

3. Nam Lee's track record over the past 10+ years as a public-listed shows a steadily growing business.

4. Nam Lee is currently spending on capex to expand capacity in Malaysia to support anticipated further business growth.