Cheung Woh Technologies

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Today (13Jul15, Monday), following the good 1Q result released last Friday (10Jul15), and backed by a volume transacted of only 248,500 shares, Cheung Woh rose a solid $0.02, or 9.3%, to close at $0.235. Against the latest (as at 31May15) NAV/share at $0.3601, Cheung Woh appears still grossly underpriced - at least from the perspective of asset-coverage.

I now look forward to the 2Q result which is expected around 10Oct15 (in accordance with last FY14's 2Q result announcement on 10Oct14), and another interim dividend (last FY14: $0.005/share).
in latest AGM, heard fm mgmt that they supply aircomb to both Seagate and WD, anyone can validate this?
An interesting report on Cheung Woh from the NextInsight website...
wow, so indeed this next insight article confirms CW supply to both Seagate and WD, and a hefty 50% of the allocation of both of them, bring forth 2 points, CW now is more of a partner than a subcontractor that is subject to cut-throat pricing pressure than before.....also the question of what have them done right????

Found this in a 2011 article on Cheung Woh, though could be a biased article as it is written by its then Investor Relation firm :

Edge with proprietary technology
Cheung Woh’s proprietary cold-forging technology is able to produce large quantities of air combs at a lower cost and faster turnaround time, providing it with a distinctive competitive edge over peers. The technology combines knowledge in cold-forging with the use of computer-controlled machines to shape metal parts at room temperature, and in the process reduces machining time and lower material costs substantially. It is this edge that made Cheung Woh the main supplier of air combs to WD.
Based on the FY15 (ended 38Feb15) and 1Q (ended 31May15)-FY16 results, Cheung Woh now has a total of 5 quarters of continuous 'printing good money' kind of profitability and positive FCF generation, running at a steady rate of approx. $0.042/share p.a. in EPS, and approx. $0.066/share p.a. in aftetax FCF (before capex). As 1Q is supposedly a seasonally slightly slower quarter for Cheung Woh's production due to the CNY effects, the coming 2Q and further 2 quarters' results should confirm convincingly the underlying strengths of Cheung Woh's current expected positive earnings growth trajectory.

I suppose shareholders should just sit tight for the ride.
Agree that this is a potential gem in the making with the combination of a more than decent yield and growth recovery. The fact that it has paid out dividends for the last 10 years even during lean times is also reassuring.

At $0.25, trailing PER and yield is around 6x and 6% respectively and coupled with Price to Book of 0.7x, this is more than decent in my opinion.

Thin volume/low liquidity may be an issue for some but I never ever see this as an issue. When stocks like this get discovered, they tend to surge more than usual as demand > supply.

My sole concern is the cyclical nature of the business but since it is on an upward momentum, agree with dydx, sitting tight for now. Big Grin
Today (17Sep15) NextInsight posted another positive write-up on Cheung Woh based on a recent analyst report by DBS Vickers.....

I look forward to the coming 2Q (ended 31Aug15) result announcement expected in the 2nd week of Oct15, and another interim dividend (last FY14: $0.005/share). 

Share price wise, Mr Market is still trying hard to price this promising business - with a projected annual EPS of $0.045 (conservative), and backed by latest revised NAV/share of $0.3501 (after accounting for the $0.01/share final dividend paid on 15Jul15) - appropriately.
a combination of low pbv, low pe, and solid balance sheet.

hopefully, the declining demand for hdd in consumer electronic can be be offset by demand from data servers and cloud computing.
2Q (ended 31Aug15) result just out.....
Cheung Woh's HDD components business seems to have some inherent strengths. Another $0.005/share interim dividend declared.
(12-10-2015, 09:44 PM)dydx Wrote: 2Q (ended 31Aug15) result just out.....
Cheung Woh's HDD components business seems to have some inherent strengths. Another $0.005/share interim dividend declared.
looks like not much inherent strength after all...

looking through the jan 3q results,

earnings down and debt increased a lot.

lets see next quarter results.
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