JEP Holdings

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JEP: Look out for sweeping changes under Andy Luong

Written by The NextInsight Team
Published: 20 July 2018

To Andy Luong, the new controlling shareholder of JEP Holdings, the company's new HQ at Seletar Aerospace Park is a white elephant, according to a report in The Edge Singapore

The 16-22 July edition of the weekly quotes Luong saying Singapore is not a cost-competitive location for JEP. He wants to relocate the operations to Penang.

"(In) the last six months, (we have been trying) to understand the root cause of why the company isn't making money. We are basically (attempting) to rightsize the management and operations."

In FY2017, JEP earned $825,000 in net profit on $86.1 million of revenue.

Luong is the chairman and CEO of UMS Holdings, which acquired a 29.5% stake in JEP in January this year from insiders for $28.2 million cash.

More details in https://nextinsight.net/story-archive-ma...andy-luong

As at 31 December 2017
Revenue = $86.09 Million
EBITDA = $6.95 Million
Net profit = $0.8 Million
EPS = 0.067 cents
Total Asset = $117.2 Million
NAV per share = 3.2 cents

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UMS to make mandatory conditional cash offer of S$0.150 per share to increase stake in SGX-listed JEP Holdings Ltd ("JEP")

SGX Mainboard-listed UMS Holdings Limited will be making a mandatory conditional cash offer to acquire all the remaining issued and paidup ordinary shares (“Shares”) of its associated company - SGX Catalist-listed JEP Holdings Ltd, other than those already owned, controlled, or agreed to be acquired by UMS.

UMS currently owns 111,748,275 ordinary shares or approximately 27.9% of JEP.

The Offer by UMS will be made pursuant to its acquisition (via a married deal) of 43,841,202 Shares ("Sale Shares") from SGX-listed Ellipsiz Ltd, which owns approximately 10.9% of JEP.

Pursuant to the Acquisition, UMS' shareholding interest in JEP has increased from 27.9% to 38.8%. Further to the Acquisition, UMS now owns more than 38% of JEP, triggering the mandatory cash offer for the entire share capital of the company.

UMS will pay Ellipsiz a total of approximately S$6.58 million in cash or S$0.150 per Sale Share - a price arrived at on a willing-buyer and willing-seller basis.

The offer price of S$0.150 per Sale Share represents a discount of approximately 3.8% over the last transacted price of S$0.156 per Share as at 10 May 2019.

More details in https://links.sgx.com/FileOpen/UMS_News%...eID=559153

[Yoyo]

Today is JEP AGM. Did anyone in this community attended the meeting? Appreciate if you share with us your observations and findings. Thanks in advance.

Vested
but concern of the health of aviation biz.

[TerryT]

Net Profit of $218,000

Other operating income $5,221,960

Impairment of Goodwills $6,250,000

A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. The Group expects its aerospace-focused precision machining segment to continue face strong head winds in the near term. Re-opening of country borders to international travellers is slower than expected. The recent emergence of Covid-19 virus variants has deterred countries’ authorities to lift their restriction measures prematurely. During the pandemic, amidst the unprecedented challenges to the global supply chain, many of our strategic customers were forced to revamp their supply chain strategies. The Group has proven track record in its past collaborations with our strategic customers. We are pleased to report that the Group has been selected by some of its customers as a strategic vendor moving forward. The Group has commenced first article inspections (“FAI”) in relation to many new complex and high value added parts. We expect these low volume FAI to turn into volume production within the next 1 to 2 years. For equipment manufacturing segment, the Group is expected to achieve some positive growth and is actively diversifying its customer portfolios to mitigate concentration risk. In line with the Group’s direction to move most of its non-critical manufacturing activities to region with lower operational cost, the Group purchased a plot of land in Penang from the Malaysian authorities in November 2020 to set up a new factory. The new factory is expected to be completed in Q2 of year 2022 and reach full operating capacity by 2024.