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Teckwah is doing a PR blitz - full-page ad on the ST, press release, etc. - to launch its new corporate identity and logo, also in conjunction with the move into the group's new global corporate HQ at Pixel Red located at 51 Tai Seng Ave…..
http://infopub.sgx.com/FileOpen/PressInf...eID=297898

It looks like the future Teckwah will be quite different!
(20-05-2014, 09:21 AM)dydx Wrote: [ -> ]Teckwah is doing a PR blitz - full-page ad on the ST, press release, etc. - to launch its new corporate identity and logo, also in conjunction with the move into the group's new global corporate HQ at Pixel Red located at 51 Tai Seng Ave…..
http://infopub.sgx.com/FileOpen/PressInf...eID=297898

It looks like the future Teckwah will be quite different!

I think if Teckwah is able to evolve, makes its share a bit more liquid (eg bonus issues etc) and gets into the radar of institutional fund houses, it should at least trade at 1.5 to 2x book value.
Its balance sheet is very strong.
35% of current share price is backed by cash (14 cts per share)
Its total debts at $12 mil implies a gearing of 10%, pretty low.
NTA is 52 cts (maybe higher if Pixel Red is revalued)

Current total share of 233 mil looks small coupled with small daily trading volume may explain why fund houses are not paying attention to Teckwah.
Quote:Its balance sheet is very strong.
35% of current share price is backed by cash (14 cts per share)
Its total debts at $12 mil implies a gearing of 10%, pretty low.

Latest 1Q14 financials show only $26.2M in cash ($0.11 per share). Net cash after debt and finance leases is only $2.5M ($0.011 per share). The company has spent heavily on Pixel Red, more in fact, than they had projected when bidding for the plot of land initially. Planned building and civil works expenditure was $27.2M and as of FY13, actual expenditure was already $31.6M. The latest quarter showed PPE went up by another $12.7M.

A result of bad planning? Every million wasted is a loss of $0.0043 per share.

Please correct me if my numbers are wrong.
(21-05-2014, 03:59 PM)D123 Wrote: [ -> ]
Quote:Its balance sheet is very strong.
35% of current share price is backed by cash (14 cts per share)
Its total debts at $12 mil implies a gearing of 10%, pretty low.

Latest 1Q14 financials show only $26.2M in cash ($0.11 per share). Net cash after debt and finance leases is only $2.5M ($0.011 per share). The company has spent heavily on Pixel Red, more in fact, than they had projected when bidding for the plot of land initially. Planned building and civil works expenditure was $27.2M and as of FY13, actual expenditure was already $31.6M. The latest quarter showed PPE went up by another $12.7M.

A result of bad planning? Every million wasted is a loss of $0.0043 per share.

Please correct me if my numbers are wrong.

You are right D123, based on 1Q14 results, cash actually drops to $26.2 mil. However, NTA has increased to 53.18 cts.

Can I ask where did you get the numbers for the budget and expenditure for the new building? Was the actual expenditure for Red Pixel alone or did it include the renovation at Malaysia Iskandar plant and expansion in China Wuxi plant? Thanks.
Details of planned expenditure can be found here:
http://infopub.sgx.com/FileOpen/Teckwah_...leID=95023

As for the actual expenditure, there is some guesswork involved. Since the AR2013 wrote that the Wuxi plant was built and fully operational in the last quarter of FY13, and that the Malaysian facilities were also completed, I assumed everything under "Building under construction" in note 12 of the AR2013 referred to Pixel Red.

I might be wrong about this. Maybe they only meant that the Malaysian facilities were finished as of the publication of the annual report, but not FY13.

Nevertheless it seems to me that the $12.7M addition in 1Q14 to PPE is still rather high.
Based on its long track record, Teckwah is not a company that spends on capex anyhow. Because of its extremely low land cost, and extra long 30 + 29 years land lease, Teckwah's investment in its new HQ building - Pixel Red - in Tai Seng has already created quite a lot of extra wealth for the company and its shareholders. This is the same situation for its new factories in Iskandar, since Teckwah bought the land over some 3 years ago.
SME SPOTLIGHT
Teckwah goes for the total package

Many traditional businesses in Singapore are finding it harder to survive amid a challenging business environment. But some have found ways to innovate and stand out from the crowd. In the second of a four-part series, The Straits Times speaks to Teckwah Industrial Corp, a print and packaging business providing marketing, not just manufacturing, solutions to deal with rising competition in the packaging sector.
Techwah seems to be doing many things at once
I went into Teckwah's corporate website and noted that in the Profile page…..
http://www.teckwah.com.sg/about.html
there is a Company Song with a video and lyrics in both English and Chinese…..
http://www.teckwah.com.sg/about-company-...modal=true
http://www.teckwah.com.sg/pdf/teckwah-song.pdf

Indeed, apart from having a well-established business, Teckwah as a company has a certain soul, and the people working in Teckwah are a happy lot - mainly because of an enlightened senior management team..
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