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(29-05-2014, 07:33 PM)CY09 Wrote: [ -> ]Perhaps you could read the company's AR 13 report and you will know the coy's strategy of moving towards automotive. Also from what the CIMB report on page 3, molds for plastic components of automotive stay relevant longer compared to consumer/ electronics. This eliminates the need of constantly changing to meet customer's demand

Almost every brand having new car models every year now with new interiors, surely the plastics mould would have to change? Just like mobile phone also 1 year change 1 time.

I think they just see increased demand in chinese automotive market as china ramps up their roads and everyone must have a car, so build more capacity for automotive. Sunningdale also benefiting from this.

In fact if you see the report, similar percentage increase year on year for auto and consumer. Biggest % gain was in healthcare which is their smallest department (maybe they should go in this direction, like Riverstone benefiting from healthcare sector, after all china hospitals must be chock a block full of patients from all the pollution. Maybe the biggest margins are in automotive or maybe its just their biggest earner. A breakdown of profit margin each area would be more helpful.

I will accumulate only if the dividend level goes to 6% Big Grin Car industry can turn down also, just like the shipping.
It looks like finally Mr Market is going to re-rate this grossly underpriced counter (NAV/share @31Mar14: $0.3112)….
It is great to note that share-price wise, Fisher Tech has out-performed the STI by some 15% since Jan14.

Still more upside? Well, considering there is a $0.006/share Final dividend for FY14 (ended 31Mar14) coming in Aug, the probability is pretty good...
Interestingly, Sunningdale's NAV will be 32.2 cents post Sam Goi transaction. This means NAV wise; Fischer is very close to Sunningdale! of course Fischer tech is a much smaller coy than the former in terms of market cap
FY14 (ended 31Mar14) AR makes very interesting reading…..

I think the following full extract of the outlook statement in the Letter to Shareholders by Chairman Foo Meng Tong and President/CEO Tan Choon King says quite a lot about Fisher Tech's present very well organised and positioned business - especially as an established supplier of precision engineered plastic parts to global auto makers - and its positive near-to-medium term prospects..

Outlook for the Year
Readings from the latest economic surveys and indicators
suggest that the global economic recovery is likely to be
sustained in 2014. On the whole, the major economies are on
track to chalk up growth in the coming year. In Asia, China,
the world’s second largest economy, is forecast to grow at
a marginally slower but still healthy pace of 7.5% in 2014 after
a 7.7% GDP growth in 2013.

Significantly, the Chinese automotive market is expected to
sustain growth momentum supported by economic stimulus
measures, robust demand for cars in smaller cities of China’s
interior provinces and steady personal income growth.
This bodes well for Fischer Tech as revenue from our China
operations accounts for more than 55% of the Group’s total
revenue and more than 94% of our business in China is in the
automotive business.

Against the backdrop of a positive outlook for the global
economy and barring any unforeseen circumstances that may
disrupt our operations, we are cautiously confident that the
Group will be able to grow steadily in 2014.

Over the years we have developed our automotive business on
a sound footing based on advanced engineering capabilities
and competitive marketing and sales strategies. In recent years,
we have launched ‘global platform’ programmes with several
global automotive manufacturers. Under these programmes,
we have been selected to supply parts and components for our
customers’ automotive manufacturing plants not only in Asia
but also to their plants around the world.

Today, Fischer Tech is able to count a number of the major
American, Japanese and European automotive companies as
our global platform partners. This is a strong testament of the
international recognition garnered by Fischer Tech as a leading
and innovative global manufacturer of precision automotive
parts and components.
Offer is just for show and satisfy regulations only. InnoValues is another company doing automotive in China and its share price enjoyed a boost lately!

For each Offer Share: S$0.16 in cash (the "Offer Price").
The Offeror does not intend to revise the Offer Price.
(20-08-2014, 10:05 PM)kelvesy Wrote: [ -> ]Offer is just for show and satisfy regulations only. InnoValues is another company doing automotive in China and its share enjoyed a boost!

For each Offer Share: S$0.16 in cash (the "Offer Price").
The Offeror does not intend to revise the Offer Price.

The promotors behind the Offeror Harmony (S) Holdings Pte Ltd of this GO - Tan Choon King (95%; Fischer's President and Chief Executive Officer) and Foo Meng Tong (5%; Fischer's Non-Executive and Independent Chairman) - just got lucky and managed to get Amtek and Ono Sangyo to agree to sell their stakes to them at such a low price of $0.16/share. Now Harmony (S) Holdings has secured 51.26%. Unless Venture (now holding 19.16% through its plastic parts division, Univac) and other big shareholders (e.g. Lee Ah Bee, who holds 2,93%) decide to also take the bait - most unlikely! - the GO to privatise Fisher at such a low price is unlikely to succeed.

A relevant scenario to consider: Would Venture under its Chairman/CEO Wong Ngit Liong be moved by this GO to make a higher counter offer? The possibility is there as Tan is no match when compared with Wong!
In the first place, Fischer Tech is worth more as automotive sales are gaining momentum. At $0.16, it is really a dirt cheap bargain for Tan.
Its a definite no for me, with FCF of 1.9 cents, I am not selling my stake at below 12x P/FCF. Hopefully Venture is willing to stand out and battle it out to takeover the company
will a smaller potato like me fullyvested at below 0.11 be moved? maybe & maybe not..hmm..
offer at 16c? WOW!
the FY 2014 results shows the NAV is at 31c.

the offer price is 50% lower than the NAV. what were they thinking?
rational investors will not option to cash in at 16c.
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