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15-07-2015, 11:17 AM
(This post was last modified: 15-07-2015, 11:18 AM by Big Toe.)
Fischer tech has a better track record compared to fuyu.
A more prudent company overall and corporate culture is somewhat like one of its owners, venture corp, which is a good thing.
Fuyu share price outperformed Fischer tech recently as fuyu was beaten down so badly that any positives translate to a huge upside.
Time to re-look Fischer tech. Not a fantastic business, but with decent dividends and oil prices sustaining their lows, it's probably a good time to take a chance.
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15-07-2015, 01:31 PM
(This post was last modified: 15-07-2015, 01:31 PM by BlueKelah.)
While downtrend in oil price may be a plus, the automotive industry in China is already slowing in terms of growth and will be facing headwinds given their recent stock market rout and general economic slowdown.
At current prices div yield would be around 4.88%, decent but not really juicy enough, given the high earnings reached this FY15.
However other metrics look good with a decent 40% discount to NAV and high net cash position and there could be further upside.
-n v-
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Some insights into Automotive Industry and Fischer Tech.
It is huge market and Fischer barely scratched the surface.
It's a matter of Fischer tech's ability to win contracts/programs rather than whether autos are slowing in China.
Market share of plastic/assembly components for them probably don't even make up 1% of on-going auto projects in china.
Maybe they have 0.000000000000001% of the market globally.(Figures for illustration purpose only, but you get the drift)
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not easy to find companies at such depressed valuations yet have an extremely solid business fundamentals.
- positive operating cash flow
- consistently profitable
- trading at around 0.5 P/B
- EV/EBITDA of just 1.1
- net cash position of about S$25mil representing more than half of market cap
with management trying to buy-out the company previously - shows a lot of intrinsic value in the company not realised by the market.