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Anyone interested in this counter? I thought there was a thread on this company somewhere but could not find it.

Some of my comments:
- Business Model: Good distribution network with a diversified porfolio of products
- Management: Seems to be a family business type where the two top executives are brothers. I don't have much info regarding the management but so far have not heard of any bad reputation
- Number: Looks good although facing market challenges, probably from the China sale slowdown.

Look forward to hearing your ideas.
take a look at stamford tyres. u can find some info there.
There is a surge in price and volume today. Anyone knows the reason?
(25-07-2014, 10:29 AM)pumpkin Wrote: [ -> ]There is a surge in price and volume today. Anyone knows the reason?

The surge in price n vol start few days back.. Just sold them after holding them for so long.. Very good fundamental company though with consistent div and high NAV.. just too illiquid..
Oh ya, formula 1 soon to be champion official rim sponsor.

Good luck to those still vested.
Vested again after the drop today. Price/book is abt 0.52 now. Improve net profit and selling of the land in Malaysia by the end of this year should see a slight bump in dividend. Liquidity remain an issue thou and not much media coverage.

Advanti rims anyone?

Renew vested.
2Q/1H result just out.....

Notwithstanding the lower profitability in both 1Q and 2Q, I would believe YHI has a steady, steady business with quite a lot of underlying strengths. I suppose we have to evaluate YHI's lacklustre profitability in the last couple of years based on the market dynamics of the tyre distribution business in key markets in Australia, Malaysia and Singapore also in the light of the strengthened USD, as well as of the rim manufacturing business. The coming 3Q result should be boosted by a $3.2m gain from the completion of disposal of a factory in Sepang, West Malaysia, for MYR30.5m, which will help bolster YHI's already strong B/S and further reduce the group's debts.

Details of the disposal of factory in Sepang, West Malaysia.....

Against the latest 30Jun15 NAV/share at $0.4424, YHI based on the last done share price of $0.19 appears grossly under-priced.
(Took a look as NAV of 0.44 versus price of approx 0.19 seems lucrative)

Just some thoughts to share and discuss after looking through the financial statements,

1. The bulk of the borrowings (>80%) seems to be short term - wonder if that be an issue when interest rates go up...

2. A big chunk of the NAV is from receivables and inventory, the receivables are about two times of the payable. My concern is whether the receivables and inventory are worth what they are stated on the books. Might someone familiar with the company/industry know if that is common and acceptable?

Not Vested
YHI is an established business operation that dates back to current Chairman/Group MD Richard Tay's (who joined the business in the early 1970's) father who started it in 1948 as a single tyre shop.....

YHI Group (IPO since 2003) and its businesses having been trading continuously for over 60 years, are now be very well supported by various chosen product OEMs from all over the world.....
as well as many by local distributors/retailers in various chosen markets group has a direct presence or exports into. I suppose proper inventory management and customer risks evaluation/management, as well as the related working capital financing from suppliers and banks including the related trade-related forex exposure management, should be there already in YHI Group. Depending on the normal seasonality of the businesses and economic cycles, the overall levels of inventories and trade receivables, as well as the short-term bank debts supporting them, would fluctuate.
Tyres business stands to gain from lower crude prices.

Extracted from TheEdge daily dated 14 Aug 2015

Tyre makers — big winner from collapse in crude prices

NEW YORK: Few industrial companies will celebrate the collapse in oil prices to below US$50 (RM201.50) a barrel more than the world’s largest tyre manufacturers. For firms including Bridgestone Corp, Michelin & Cie,
Goodyear Tire & Rubber Co, Continental AG and Pirelli & C SpA, lower energy prices not only mean cheaper synthetic rubber, but also higher
demand as motorists drive more.

“We are at a type of sweet spot at the moment,” Continental chief
financial officer Wolfgang Schaefer told investors on Aug 4 after an-
nouncing that second-quarter profit jumped 25% from a year ago.

Tyre makers have surged over the past 12 months. Continental (red) has led gains of five major producers including Pirelli (purple), Bridgestone (green), Goodyear (white) and Michelin (cyan).

Investors appear to agree: the shares of the top-five tyre producers have rallied since oil prices started to fall. Take Goodyear, the US’ largest tyre producer. Its shares are up 25% over the last year, while the S&P 500 index weighed down by oil producers is up 7.4% over the same period.

According to the Rubber Manufacturers Association, an industry body, it takes about seven gallons of oil to produce enough synthetic rubber to make a tyre.

The cost of Brent crude, a global benchmark, has fallen 51% over the last year to less than US$50 a barrel. “Tyremaker margins are expanding because of low prices for synthetic and natural rubber,” Kevin Tynan and Tanner Murphy, analysts at Bloomberg Intelligence, said in a report. The industry’s gross margin rose to almost 27.5% in the first quarter, the highest in at least 15 years, according to data compiled
by Bloomberg Intelligence .

Low oil prices have another indirect effect: cheaper gasoline and diesel mean that motorists are driving more often and further away.
There is no doubt YHI is a survivor and will remain as one for a long time coming.

However structurally, both trading and mfging are facing structural challenges and has been that way for the last 5 - 8 yrs.

Its strategy for mfging was meant to be a niche player focusing on after-mkt wheels and not to challenge big volume OEM producers. Since then, it has been force to focus on OEM segment. Main reasons here lies in most new vehicles being fitted with alloy wheels and hence reducing the need for after mkt replacements.

As for trading, representing principals and developing mkt for principals also entails its challenges in the changed global economy with new world orders. Thinning margins is a norm and principals are also more demanding from representatives in helping them to develop markets.

I have not been following YHI closely since GFC primarily due to repeated disappointment and volatility in earnings. While mgt has now moved to shed surplus production assets, it remains to be seen how much more of such assets can realise their book value given their build-to-suit purposes.

Odd Lots Certificate Vested
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