New Toyo

[potatolover]

If I am SAH, it is in my interest to keep delaying...
Its CEO still continues to get paid despite the fact that there is not much work to be done.

This is remaining cash balance of only net 17 cents and will continue to whittle down if company indulges in frivolous expenditures.

So buying at 17 cents also doesn’t make sense. There is no assurance that 17 cents will remain at 17 cents…

It is not like a General Offer where price certainty is assured.

SAH just made the announcement on 25 April 2012.


Technically, SAH is only worth 17 cents after deducting the 1 cents for payment of dividend for FY2011.

---

Even after paring down all New Toyo's debt of 28mil, it is still about 6 cents left for distribution to shareholders.

Hi,

Sounds pretty exciting. FYI, after they listed SAH in 2004, it took them 4 years to execute the buyout of BAT's oz operations and when machinery finally got installed, the benefits only started to flow from 2H 2011.

Now they are telling you that they are looking into Africa - strategically not wrong since that is probably the last ground that has yet to be explored. Moreover Africa is a big and dangerous region - I just hope that shareholders of N Toyo can finally see some $ from the realisation of wrong term investments (SAH) in terms of one off specials.

However, from your tone - it really sounded like, we will pay down the debt so that we can become a stronger company so that we can conquer new territories.

Hope that I am wrong as N Toyo is a service support company to global sin industry and not the sin industry itself.

The drop in Net profit for the Specialty Paper (SP) was due to the loss of business from 2 customers. This will be resolved from Q3 onwards with the new supply agreement from Phillip Morris. The company also explained that the cost of materials has come down. All these factors will help to restore the profitability of SP business.

Company also mentioned that there will be more short run jobs and the reserve capacity is mainly for this purpose.

For the sales proceeds from SAH, company said they also wished that SAH quickly returned the money asap so that they can consider the next move, i.e. strategic review to exploit new opportunities, etc.

Company is also looking beyond the Asia Pacific Region into the Africa continent to expand the Printed Carton and Labels (PCL) Business.

Hi Stockerman,

Capacity can be freed up but how will they filled the freed capacity with jobs since the industry is oligopolistic.

Has there been any mentioned of what can be expected from SAH distribution (at least 50% and what will happen to the balance).

Any other meaningful updates that will drive the share price?

GG

Today at New Toyo's AGM, someone asked about the impact of Plain Packaging on the profitability. The general impression is that since less colours will be required, the cost of printing may drop. i.e. revenue will drop.

This may not seem to be the case.

Company explained that the profitability will increase. The jobs will be less complex and can be now be consolidated together for greater efficiency. It will be easier to meet the KIP set by BAT (completion of job within a certain time span). Ink costs are more or less fixed as these are sourced for New Toyo by BAT. As long as job is completed within the stipulated KPI timing, the same fee rate is paid.

So actually, transition to plain packaging printing jobs will free up capacity??