Cheung Woh Technologies

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The Group expects to report a loss for 3QFY2018 as the production of Baseplates has not
reached its target yield. Production was also disrupted due to the following reasons:

(i) Down-time to repair and reset some machines that were damaged by heavy rainfall
caused by Typhoon Hato.
(ii) There was a temporary shortage of manpower as some workers had left after the
typhoon.

Wonder if they have insurance for it? Smile
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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Profit Guidance for 4QFY2018

Cheung Woh Technologies Ltd issued a profit guidance in respect of the fourth quarter financial results for the period ended 28 February 2018 ("4QFY2018").

The Group expects to report a loss for 4QFY2018 due to the following reasons:
(i) Lower turnover in Baseplates in February 2018 due to long shut down period in China for Chinese New Year
(ii) Headcount depletion before and after Chinese New Year led to hiring of temporary subcontract workers with higher wages
(iii) There was a one-time amortisation expense arising as a result of change in useful life of toolings and fixtures used in the manufacturing of Baseplates
(iv) There was an allowance for impairment on equipment that are no longer required in the manufacturing of Baseplates
(v) There was a write-off of tools and equipment and renovation damaged by Typhoon Hato
(vi) There was staff cost incurred due to internal restructuring
(vii) Costs incurred to repair machinery and equipment damaged by the typhoon.

The profit guidance is based on preliminary review of the Group’s unaudited financial results for 4QFY2018. Further details on the Group’s performance will be disclosed when the company releases the unaudited financial statements for 4QFY2018 on or before 27 April 2018.
Specuvestor: Asset - Business - Structure.
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Conditional GO at 28.5 cts.

One of the best offers in recent time to minority shareholders at Pirce to book of 1.2x and 13.5 cts above the last transacted price of 15 cts or 90% premium.

A salute to the Law family Smile Smile

https://links.sgx.com/1.0.0/corporate-an...060521.pdf
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Kept making losses and still offer go price high high, salute
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yes sir, it's still a OPMI friendly owner.. congrats and best wishes for their future! Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
The Law's are reasonable and fair people, but I am certain the GO at $0.285/share is still below the intrinsic value and the RNAV, as Cheung Woh holds quite a few old industrial properties in Malaysia (Penang and Johor) and China (Zhuhai). So there should be some extra value left for them still..
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(07-05-2021, 10:14 AM)dydx Wrote: The Law's are reasonable and fair people, but I am certain the GO at $0.285/share is still below the intrinsic value and the RNAV, as Cheung Woh holds quite a few old industrial properties in Malaysia (Penang and Johor) and China (Zhuhai). So there should be some extra value left for them still..

Hi dydx,

I guess we have to wait for the IFA report to be out to have an idea of how much those industrial properties are worth. If their current value deviates a lot from their book value (which are accounted for under PPE using cost less depreciation/impairments), then there will be valuation done on them and we should have an idea on how much is its RNAV. However, do take note that these industrial properties are leasehold land/buildings and some of them are actually more than 30 years old already.

Having said the above, I do agree with your view that they are fair and reasonable people. Considering the fact that the free float of Cheung Woh is only 21% plus, they could actually offer a smaller premium from its last traded price to get another 10% of the shares out there and trigger compulsory acquisition to take out the remaining minorities. So, I guess from that viewpoint, they are offering quite a decent premium.

For those who would still like to remain vested with them, do take note that you still have an option to take the New Offeror Share instead of $0.285/share cash. However, do take note that the New Offeror Share will be in an unlisted private company.
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