Winas (formerly: Sinwa Limited)

[BeDisciplined]

The company looks cheap in PB sense but fairly valued base on PE. The management has a "good" history of making bad diversification ventures one after another. They are also very optimistic in projections but usually cant deliver.

1) "Though our charter (KS TITAN II) was recently terminated, we remain very confident of securing another charter for this vessel. " (AR 2009)

What happen?
"Our jointly held jack-up liftboat (KS TItan II) was off-hire for the entire year of 2010" (AR 2010)

2) "The decision to expand our services to include engineering, steelworks, and heat exchangers operations is definitely a positive step forward for the Group." (AR 2011)

What happen?
"Despite increases in revenue in the engineering division in FY2012, the revenue were not regular during the year and hence resulted in some unutilised capacity at the back of committed overhead costs. Margins were also squeezed as the industry slows down and the costs of employing foreign workers increases" (FY2012)

The company management people remains the same. I think they lack business foresight. Can we count on them to make the same mistakes, i bet they will.

Bibi, I am really impressed with your tracking of this stock.