Earnings are out, you'll see the market reaction tomorrow. Instead of praying for takeovers or special dividends, look at more actual results.
Q2 revenue up 9% to 72million
Operating profit up 4.4% to 8.65million
Profit from continuing operations down 26.9% to 6.35million, mainly due to decrease in share from associates (SAH).
Dividends, unfortunately, is reduced, to 0.80cents per share.
Kinda expected, SAH only issued dividends this quarter, and New Toyo has not received it, why would they issue special dividends? If any, will probably come in the next quarter or end year, unless the management does what it says "The Group will actively seek opportunities to replace this profit contribution from SAH"
Experts of New Toyo, can anyone help explain why there is a dividend cut after years of maintaining 0.97 cents...
New Toyo also mentioned that they will seek new business to replace the previous contributions of SAH, ie SAH payout likely to be retained for further acquisitions...
On paper, it seems that the more direct play is Tien Wah. All these conservative statements could be indicative of some sort of privatisation attempts before value can be unlocked.
Very confused...
Everyone should start selling New Toyo
(14-08-2012, 08:44 PM)l0nEr Wrote: [ -> ]Earnings are out, you'll see the market reaction tomorrow. Instead of praying for takeovers or special dividends, look at more actual results.
Q2 revenue up 9% to 72million
Operating profit up 4.4% to 8.65million
Profit from continuing operations down 26.9% to 6.35million, mainly due to decrease in share from associates (SAH).
Dividends, unfortunately, is reduced, to 0.80cents per share.
Kinda expected, SAH only issued dividends this quarter, and New Toyo has not received it, why would they issue special dividends? If any, will probably come in the next quarter or end year, unless the management does what it says "The Group will actively seek opportunities to replace this profit contribution from SAH"
Just do a quick check on its 1st half result, with 0.8cents dividend, it is only 18.4% payout of Free Cash Flow and 51% payout of net profit.... it has more cash to retain 0.97cents dividend even increase... weird.. they should know this definitely will (maybe) trigger major selling with the dividend cut...
Probably they want give us the chance of accumulate more at the lower price. lol....
Hopefully Q3 will be better with the dividend from Tien Wah and SAH.
(Vested)
COnspiracy to take company on the cheap buy out by management...haha
(14-08-2012, 09:06 PM)Gregg Wrote: [ -> ] (14-08-2012, 08:44 PM)l0nEr Wrote: [ -> ]Earnings are out, you'll see the market reaction tomorrow. Instead of praying for takeovers or special dividends, look at more actual results.
Q2 revenue up 9% to 72million
Operating profit up 4.4% to 8.65million
Profit from continuing operations down 26.9% to 6.35million, mainly due to decrease in share from associates (SAH).
Dividends, unfortunately, is reduced, to 0.80cents per share.
Kinda expected, SAH only issued dividends this quarter, and New Toyo has not received it, why would they issue special dividends? If any, will probably come in the next quarter or end year, unless the management does what it says "The Group will actively seek opportunities to replace this profit contribution from SAH"
Just do a quick check on its 1st half result, with 0.8cents dividend, it is only 18.4% payout of Free Cash Flow and 51% payout of net profit.... it has more cash to retain 0.97cents dividend even increase... weird.. they should know this definitely will (maybe) trigger major selling with the dividend cut...
Probably they want give us the chance of accumulate more at the lower price. lol....
Hopefully Q3 will be better with the dividend from Tien Wah and SAH.
(Vested)
(14-08-2012, 09:06 PM)Gregg Wrote: [ -> ] (14-08-2012, 08:44 PM)l0nEr Wrote: [ -> ]Earnings are out, you'll see the market reaction tomorrow. Instead of praying for takeovers or special dividends, look at more actual results.
Q2 revenue up 9% to 72million
Operating profit up 4.4% to 8.65million
Profit from continuing operations down 26.9% to 6.35million, mainly due to decrease in share from associates (SAH).
Dividends, unfortunately, is reduced, to 0.80cents per share.
Kinda expected, SAH only issued dividends this quarter, and New Toyo has not received it, why would they issue special dividends? If any, will probably come in the next quarter or end year, unless the management does what it says "The Group will actively seek opportunities to replace this profit contribution from SAH"
Just do a quick check on its 1st half result, with 0.8cents dividend, it is only 18.4% payout of Free Cash Flow and 51% payout of net profit.... it has more cash to retain 0.97cents dividend even increase... weird.. they should know this definitely will (maybe) trigger major selling with the dividend cut...
Probably they want give us the chance of accumulate more at the lower price. lol....
Hopefully Q3 will be better with the dividend from Tien Wah and SAH.
(Vested)
I think you are saying that cashflow (rather than earnings) will improve in Q3 after receiving dividends from Tien Wah and SAH...
Net indebtedness has dropped from 47.44m to 34.8m. 3 quarters or 1.5 yrs later, New Toyo will be in net cash position.
The debt is easily paid off via existing cashflow.
To satisfy the new PMI supply contract from Q3 2012, New Toyo can ride on its existing spare capacity from the loss of its 2 key customers. Hence, it doesn’t even need to commit any capital for infra. In fact, speciality paper infra is not as intensive as gravure printing.
I think it is a prudent move to award a lower dividend to lower expectations by the market, then follow up with a special dividend of five cents. That way, the total dividend payout is still high to satisfy investors but the management saves some cash for their new growth strategies.
well, it could all be for account dressing ahead of buy-out by some parties...
Technically, with its stable revenue stream, achieving net profit of 4.5m to 5m per quarter is no big deal.
Full-yr EPS of 4 to 4.5 cents. To pay out 2 cents of dividend for full yr is not an issue at all.
What is the company going to do with so much cash lying around ?
Dividends from Tien Wah and SAH plus its own cash holdings ...
Mr Yen is old ..... Think of the natural conclusion to all these ?
Site besides Tien Wah is undergoing redevelopment ....