The Board of Directors of Cheung Woh Technologies Ltd (the “Company” or together with its
subsidiaries, the “Group”) would like to update shareholders on the impact of the recent floods
in Thailand on the Group’s operations.
While the Group does not have physical operations in Thailand, several major customers of the
Group’s HDD component segment have suspended operations in Thailand as a result of the
severe floods affecting their facilities. Besides that, the customers’ supply chain is interrupted as
many component suppliers are located at the affected area.
As a result, we expect the revenue of HDD component segment to decline and consequently,
this segment is expected to report losses in the third and fourth quarter for financial year ending
28 February 2012.
For Precision Metal Stamping component segment, one of our main customers who supplies
car audio system to automotive manufacturers located in Thailand is also affected by the floods.
However, barring any unforeseen circumstances, we expect this segment to continue to be
profitable in the third and fourth quarter.
The Company will continue to update shareholders on any material development in relation to
the above.
I beleive Cheung Woh's leadership is demonstrating a commendeable commitment to their Shareholders and confidence in both their ongoing business and the successful conclusion of their recent Chinese portfolio action, by virtue of their sustained share buy-back programme over the last couple of months. With this morning's purchases on the SGX (again at S$ 0.18 per share), I beleive Cheung Woh's recent share re-purchases now total over 1.2% of the outstanding stock.
I have to admit I had some doubts in the past (e.g. Solyndra, seemingly escalating inventory levels) and the Thai floods will hurt ....... but I can only admire what the management is actually doing (not just saying) in the current not-so-easy times.
Vested.
Just checked my bank account and noted a nice credit from Cheung Woh's $0.003/share Interim dividend for FY12 (ending 29Feb12). Great!