Shanghai Turbo

[valuebuddies]

Shanghai Turbo Enterprises Limited is a precision engineering group that specializes in the production of precision vane products engages in the manufacture and sale of precision vane products, which include stationary vanes, moving vanes, and nozzles for use as components in steam turbine generators used for power generation in power plants, power stations, and sub-stations.

At current price of SGD 8c, it gives dividend approximately 6% at a payout rate of 17%, valued at 0.4 of NAV, and has a net cash of CNY 20c per share as at 30 June 2013. It seems attractive but surprisingly I could not find any forum discussion on this stock, the company's website is not accessible as well.

Nonetheless, I try to give some review based on the minimum knowledges I have.

Why should you buy
1. significantly under valued,
2. yearly dividend at very low payout ratio,
3. half of market cap is formed of cash,
4. management ever issued profit guidance, that means better IR comparing to the rest of S-Chips

Why you should not buy
1. Lack of access to information, no analyst coverage,
2. AR increased 33% in 6 months (Jan to June 2013),
3. AR amounting to CNY111M which is 75% of 2012 annual sales,
4. Dividend reduced from CNY 5c in 2011 to 2.5c in 2012 while revenue and profits increased during the same period,
5. S-Chips, S-Chips, S-Chips!! Figures could be fake

Conclusion
I need to admit that I didn't do much research into this company, it is indeed quite hard to retrieve corporate and financial information as they aren't available on the internet. Given the fact that it is an S-Chip, and the financial ratios seems too good to be true, I would rather just avoid for now.

Any sifus are watching this one and can share some insights and help to correct my understanding, thanks.

[LionFlyer]

Don't be caught up with ratios and forget the bigger picture. Ratios are only good as a first pass filter. Question to ask is why is the valuation as it is. Is this an industry norm, the market overlooked or this company screwed up?

[ForeverAlone]

S chips are dangerous

[Gaudente]

http://infopub.sgx.com/Apps?A=COW_CorpAn...EXoeajojxs

first time in history this company pays an interim dividend.
If we imagine a same amount final dividend that would make a dividend yield above 13%.

That would be a modest 25% payout rate as current P/E is 2 !

[CityFarmer]

2. AR increased 33% in 6 months (Jan to June 2013),
3. AR amounting to CNY111M which is 75% of 2012 annual sales,
4. Dividend reduced from CNY 5c in 2011 to 2.5c in 2012 while revenue and profits increased during the same period,

Base on the limited info above, the receivable day is about 9 months. I didn't look further, I reckon the cash flow statement should be pretty ugly, and probably the reason for the dividend cut.

It look similar as "channel stuffing", but it is a precision engineering company? what an interesting abnormality, and very doubtful indeed, IMO

With the doubt, I will walk away, regardless of valuation, S-chip or not

[Gaudente]

first time in history this company pays an interim dividend.
If we imagine a same amount final dividend that would make a dividend yield above 13%.

Hurrah http://infopub.sgx.com/FileOpen/STurbo-F...eID=336407 another 2.5 renmimbi cents dividend has been declared just as I expected !

[Gaudente]

quote up 18% to 0.084 right now with 38 trades and 547,000 traded shares

[touzi]

Un...Un...Unbelievable....


http://www.straitstimes.com/business/com...assault-on

Management dispute at China factory erupts in baton assault on Singaporean director

[desmondxyz]

Nothing is impossible for S Chip

[weijian]

Un...Un...Unbelievable....


http://www.straitstimes.com/business/com...assault-on

Management dispute at China factory erupts in baton assault on Singaporean director

On hindsight, the sequence of events leading up to it, wouldn't warrant it to be "unbelievable", especially in the context of a non-Singaporean nature. It would still be un-un-unbelievable in SG context, but maybe not so for some other places.

On Sunday 2 July 2017, the new management team of its operating subsidiary, Changzhou 3D Technological Complete Set Equipment Co., Limited (“Changzhou 3D”), had convened a general meeting of all the employees of the Changzhou 3D. 219 employees out of a total of 320 turned up for the meeting. 205 of them signed a open letter of plea to the local government authorities requesting for their assistance to ending the illegal occupation of the factory premises by some of the former management personnel and their associates so that the employees can return to their work normally. Plans have been made to resume control of the factory premises peacefully by mid-July 2017. Once the workers return to work in the factory, the new management team would take stock of the various work orders and quantify the losses and damages sustained. 
4th July: http://infopub.sgx.com/FileOpen/STurbo_4...eID=460159

As at 20 July 2017, the factory premises of its operating subsidiary, Changzhou 3D Technological Complete Set Equipment Co., Limited (“Changzhou 3D”) continued to be occupied by some of the former management personnel and their associates. Production at the factory had also halted.............On 1 and 2 Aug 2017, the new management team of Changzhou 3D was prevented entry into the factory by the security guards employed by the ex-management. Hence, they spoke to some of the workers from the gate, explaining to them the consequences of illegal occupation. The management team will seek government help to evict the security guards.
4th Aug: http://infopub.sgx.com/FileOpen/STurbo_a...eID=465736

Although the new board of directors of Changzhou 3D has control over the company seals and its legitimacy fully recognised by the government authorities, the factory is physically still under the control and possession by Liu Ming and his accomplices. The Board is of the view that the injunction order granted by the Court will aid in expediting the process of handover. 
18th Sept: http://infopub.sgx.com/FileOpen/STurbo_U...eID=471007