AEI Corp

[sgd]

I've been owning this gem for a while now. It's a gem because it has a lot of cash and it's undervalued and always declare good dividend around 10% I think many value investors quietly own this.

Latest AR 24 Feb 2012

Profit not so good this time due to supply chain disruptions caused by Great Japan Earth Quake and Flooding in thailand.

Declared dividend of 1cts

[lonewolf]

I beg to differ. AEI is supposedly quite dominant in the aluminium extrusion process with few competitors in Singapore; so I can't understand why it is not doing better.

If you have invested in the company at IPO at $0.28 in 2004, you would be 49% down. Even if you factor in all the dividends paid since listing, it would come up to 8.2c, which means overall, you would still be down 42%.

I have been vested in this company since IPO and has added stakes through the year; but so far it has not exactly pay off though its not the worst performing stock in my portfolio.

Also, as with other companies dealing with raw material, they are subjected to fluctuations in the raw material price quite a bit.

Here's a financial snapshot of this company; so you may form your own conclusion. If there are any other figures you want to see, let me know and I will update the table.

All numbers in S$'000 (unless otherwise stated). Dividend yield is calculated based on the closing price at end of FY on 31 Dec.

[wrap]
[table=AEI Corp]
Revenue
Gross Profit
Profit Before Tax
Net Profit
EPS (Cents)
Dividends Per Share (cents)
Dividend Yield
Net Cash from Operations
Net Cash for Year
Cash at End of Year
Free Cash Flow
[/table]
[table=FY2011]
57,394
1,789
585
13
0.06
1.00
9.09%
7,388
3,902
26,666
5,806
[/table]
[table=FY2010]
56,438
4,955
5,534
4,167
1.65
1.00
6.25%
3,006
(10,333)
22,753
(1,747)
[/table]
[table=FY2009]
47,143
11,324
10,223
8,544
3.28
3.00
24.00%
16,149
10,399
33,086
15,095
[/table]
[table=FY2008]
60,131
(4,141)
(6,155)
(5,785)
(2.20)
0.00
0%
2,834
(5,779)
22,687
(135)
[/table]
[table=FY2007]
68,117
2,499
5,232
4,486
1.86
1.00
5.71%
10,112
10,691
28,466
9,049
[/table] [/wrap]

[sgd]

I beg to differ. AEI is supposedly quite dominant in the aluminium extrusion process with few competitors in Singapore; so I can't understand why it is not doing better.

If you have invested in the company at IPO at $0.28 in 2004, you would be 49% down. Even if you factor in all the dividends paid since listing, it would come up to 8.2c, which means overall, you would still be down 42%.

I have been vested in this company since IPO and has added stakes through the year; but so far it has not exactly pay off though its not the worst performing stock in my portfolio.

Also, as with other companies dealing with raw material, they are subjected to fluctuations in the raw material price quite a bit.

Here's a financial snapshot of this company; so you may form your own conclusion. If there are any other figures you want to see, let me know and I will update the table.

All numbers in S$'000 (unless otherwise stated). Dividend yield is calculated based on the closing price at end of FY on 31 Dec.

[wrap]
[table=AEI]
Revenue
Gross Profit
Profit Before Tax
Net Profit
EPS (Cents)
Dividends Per Share (cents)
Dividend Yield
Net Cash from Operations
Net Cash for Year
Cash at End of Year
Free Cash Flow
[/table]
[table=FY2011]
57,394
1,789
585
13
0.06
1.00
9.09%
7,388
3,902
26,666
5,806
[/table]
[table=FY2010]
56,438
4,955
5,534
4,167
1.65
1.00
6.25%
3,006
(10,333)
22,753
(1,747)
[/table]
[table=FY2009]
47,143
11,324
10,223
8,544
3.28
3.00
24.00%
16,149
10,399
33,086
15,095
[/table]
[table=FY2008]
60,131
(4,141)
(6,155)
(5,785)
(2.20)
0.00
0%
2,834
(5,779)
22,687
(135)
[/table]
[table=FY2007]
68,117
2,499
5,232
4,486
1.86
1.00
5.71%
10,112
10,691
28,466
9,049
[/table] [/wrap]

I invested at 10cts

so that's why I think it's a great deal! NAV is 21 cts, if you calculate currents assets minus all debts net net is still 14cts

market price is 11cts almost 50% discount ah!

btw are those figures from datapulse that you just posted

[lonewolf]

I invested at 10cts

so that's why I think it's a great deal! NAV is 21 cts, if you calculate currents assets minus all debts net net is still 14cts

market price is 11cts almost 50% discount ah!

btw are those figures from datapulse that you just posted

Agree if you invest at 10c but that does not explain away management's seemingly inability to take advantage of their position to grow the company.

Eh.. pls give me some credit.

I did copy the tag code from my datapulse posting but double check on my figures before posting, except for the company name.

[sgd]

okie okie my bad .. thanks for the excellent research


maybe management takes a conservative approach if every year the business generate good profit give a return of 1 cts or sometime 2 cts everybody quite happy, too aggressive means spend money for expansion if timing not right market turns investment tanks so conservative is sometimes good thing.

but they also looking into diversifying, they have investments here and there, in company doing internet music and entertainment content for download something to watch out for if tech boom comes. They also investment in a stake in PRC company in edible oils business.

Time will tell how these investments will pan out but I see they rather prudent have strategic stakes here and there, a good hoard of cash and very low debt.

[sgd]

This company is cash rich and cash cow

1 cts div coming

Current Assets/Current liabilities is 5.6 only a small handful of companies listed on sgx have this level of cash over debt

Current Assets/Total liabilities is 3.8 there's more than enough cash in the till to pay for all the debts shows this is a very cash prudent company

Some companies spend and spend to grow and grow then when downturn comes they start to worry about excess capacity.

[sgd]

my pocket feels heavier this morning, bulging with coins , expecting 10% dividend from this payout, where to find 10% in this kind of environment. Have you gotten yours yet?

.. shiok

[SLC81]

Some thing is wrong here with contradicting announcements from AEI.

1) On 31 Jan 2013, the company provided Profit Guidance Annoucement which stated that "operating performance for the financial year ended 31 December 2012 (“FY 2012”) (before adjusting for provision for impairment and negative goodwill arising from acquisition) is expected to be significantly
lower than that in FY 2011.
The following factors contributed to the under performance in FY 2012 results"

This has resulted in the share price shank almost 30%.
19 Days later, The company announced that a FY Result that completely contradicted with the previously profit guidance announcement.

http://info.sgx.com/webcoranncatth.nsf/V...40007F479/$file/AEI_Ann_Profit_Guidance.pdf?openelement

Some people could have lost money selling their share too early and who knows someone could have been lurking patiently to buy their shares and made good money too.

Few questions are:
1) Is the legal for AEI to do so ?
2) What is likely SGX will do if they are informed ?

[cif5000]

Some thing is wrong here with contradicting announcements from AEI.

1) On 31 Jan 2013, the company provided Profit Guidance Annoucement which stated that "operating performance for the financial year ended 31 December 2012 (“FY 2012”) (before adjusting for provision for impairment and negative goodwill arising from acquisition) is expected to be significantly
lower than that in FY 2011.
The following factors contributed to the under performance in FY 2012 results"

This has resulted in the share price shank almost 30%.
19 Days later, The company announced that a FY Result that completely contradicted with the previously profit guidance announcement.

http://info.sgx.com/webcoranncatth.nsf/V...40007F479/$file/AEI_Ann_Profit_Guidance.pdf?openelement

Some people could have lost money selling their share too early and who knows someone could have been lurking patiently to buy their shares and made good money too.

Few questions are:
1) Is the legal for AEI to do so ?
2) What is likely SGX will do if they are informed ?

FY11
Net Profit: 13
Negative Goodwill: -
Impairment: 3,235
Profit (before adjustment): 3,248

FY12
Net Profit: 4,677
Negative Goodwill: 3,571
Write-back: (734)
Profit (before adjustment): 372

Difference: 3,248 - 372 = 2,876 or approximately 89% decline

[dydx]

If we adjust out all the one-off items from the reported PBT numbers of the latest FY12 result and that of FY11, it is very clear that the overall performance of the operating business activities as a group has deteriorated markedly.

I guess many new investors bought in today and were willing to pay a higher share price becuase they were attracted by the declared $0.01/share Final dividend and the strong B/S and high NAV/share of $0.224, but many existing shareholders also decided to sell out because of the much weakened operating performance and deteriorated business outlook. Such is the stock market!