14-06-2012, 12:14 AM
Cheung Woh's FY12 (ended 28Feb12) AR makes interesting reading.....
http://info.sgx.com/listprosp.nsf/6c6be9...a00112500/$FILE/Cheung%20Woh%20AR%202012.pdf
After reviewing the AR, my sense is that Cheung Woh's business volume and revenues from the 2 remaining core business segments of HDD Components and Precision Metal Stamping Components are poised for quite a strong recovery in FY13.
Going forward, I suppose very likely the full value of Cheung Woh as a business and as a stock would be realised when the Law family decides to sell its controlling 70.49% stake to a trade buyer or a PE fund. I suppose any potential transaction would have to factor in Cheung Woh's continued ability to generate a good positive FCF from its business operation, as well as the CMV of the underlying assets that support the business operation. Bearing in mind Cheung Woh's latest (as at 28Feb12) NAV stood at $92.546m, any potential transaction could well be done at a reasonable premium over NAV say at $120.0m, which will translate into a price of approx. $0.39/share based on the latest 305.662m outstanding issued shares (excluding 7.423m treasury shares). Is this a little too far-fetched?
http://info.sgx.com/listprosp.nsf/6c6be9...a00112500/$FILE/Cheung%20Woh%20AR%202012.pdf
After reviewing the AR, my sense is that Cheung Woh's business volume and revenues from the 2 remaining core business segments of HDD Components and Precision Metal Stamping Components are poised for quite a strong recovery in FY13.
Going forward, I suppose very likely the full value of Cheung Woh as a business and as a stock would be realised when the Law family decides to sell its controlling 70.49% stake to a trade buyer or a PE fund. I suppose any potential transaction would have to factor in Cheung Woh's continued ability to generate a good positive FCF from its business operation, as well as the CMV of the underlying assets that support the business operation. Bearing in mind Cheung Woh's latest (as at 28Feb12) NAV stood at $92.546m, any potential transaction could well be done at a reasonable premium over NAV say at $120.0m, which will translate into a price of approx. $0.39/share based on the latest 305.662m outstanding issued shares (excluding 7.423m treasury shares). Is this a little too far-fetched?