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PR Newswire
31-08-2012, 01:59 PM
As expected, FY12 was a record year for Tai Sin, with sales of $279M, surpassing the previous high of $257M set in 2008. Even more encouraging was the fact that Q4 sales hit a new record of $78.7M, 18.5% increase y-o-y and 14% more than Q3. Full year GM% of 18.3% was also much better than last FY, meaning no deterioration in ASP amid the volatile copper prices.
FY12 EPS improved to 4.47, and NTA increased to 28.55c. Final dividends of 1.5c was declared, bringing full year DPS to 2.1c, or a payout ratio of 47%. Current yield is 8.7%. Tai Sin has decided not to issue script dividends this time round, which means they need to folk out about $6.2M cash. I am sure the company is confident about their ability to generate cash moving forward.
Despite an increase in business volume, inventory has been stable throughout the year, hovering at about $63M, and lower than $66M as of end of last FY. This is a great relief to me as the value of inventory can fluctuate widely according to copper price. $63M inventory can probably last them one quarter.
I do have a bit of concern on the high YE AR, at $85M. They did write off small amount of AR as bad debts this year.
It is also worthy to note the comment made by the company:
“Modest growth is expected from expansion in the transport engineering and construction sectors. This will benefit the Group’s cable and wire segment.”
I believe with the many public and private projects going on in the next few years, Tai Sin performance should be satisfactory in the near future.
FY12 EPS improved to 4.47, and NTA increased to 28.55c. Final dividends of 1.5c was declared, bringing full year DPS to 2.1c, or a payout ratio of 47%. Current yield is 8.7%. Tai Sin has decided not to issue script dividends this time round, which means they need to folk out about $6.2M cash. I am sure the company is confident about their ability to generate cash moving forward.
Despite an increase in business volume, inventory has been stable throughout the year, hovering at about $63M, and lower than $66M as of end of last FY. This is a great relief to me as the value of inventory can fluctuate widely according to copper price. $63M inventory can probably last them one quarter.
I do have a bit of concern on the high YE AR, at $85M. They did write off small amount of AR as bad debts this year.
It is also worthy to note the comment made by the company:
“Modest growth is expected from expansion in the transport engineering and construction sectors. This will benefit the Group’s cable and wire segment.”
I believe with the many public and private projects going on in the next few years, Tai Sin performance should be satisfactory in the near future.