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Any view on this company, bros?
VicPlas International Ltd is a Singapore-based company engaged in the research, design, development and manufacture of medical devices through its wholly owned subsidiaries, Forefront Medical Technology (Pte) Ltd in Singapore and Forefront Medical Devices Co., Ltd in China. It is also engaged in the manufacturing and distribution of plastic building products, including unplasticised poly vinyl chloride pipes and pipe fittings and electrical conduits through its wholly owned subsidiaries, VicPlas Holdings Pte Ltd in Singapore and Rimplas Industries Sdn. Bhd. in Malaysia. It operates in two segments: Pipes and pipe fittings, which is engaged in Manufacturing, trading and distributing of pipes and pipe fittings, and Medical devices, which is engaged in Manufacturing and developing medical devices. On March 28, 2012, it’s wholly owned subsidiary, Forefront Medical Investment Pte. Ltd., incorporated a wholly owned subsidiary, Forefront Medical Technology (Jiangsu) Co. Ltd. in China.
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Extracted from FY09 financial statement:
Quote:Exceptional item in the current year of $16.07 million relates to the impairment loss on goodwill and intangible assets. This
exceptional item is one-off and has no impact on the cash and net tangible assets of the Group. The goodwill arose from the
Group’s acquisition of 50% of Forefront Medical Technology (Pte) Ltd (“FMT”) in July 2007 due to the purchase price being
higher than the net tangible assets attributable to the shares acquired. The purchase price was negotiated under the then prevailing
and more buoyant market conditions. The intangible assets largely arose in FY 2008 when there were greater expectations of
future cash flow to be generated from these intangible assets. While Management continues to have a high degree of confidence
and is cautiously optimistic about the future growth of FMT, it would be prudent for the Group to write off the goodwill and
intangible assets after considering the uncertainties prevailing in the current market place, the FY 2009 results of the medical
devices segment, the announced plans of our key customer and the significant judgment involved in ascertaining an exact value of
FMT in view of the foregoing.
Excluding the exceptional item, the Group would have recorded a net profit before tax of $2.56 million in FY 2009.
At the end of FY09, book value was only 33.6mil, meaning the impairment was huge proportional wise.
Reminds me of why need to be wary of goodwill/intangibles. Three years on FY10, FY11, FY12 total net income of 12.1 mil still not enough to cover back the impairment...
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I want to see the write-off as a prudent move. I myself don't like a lot of intangible assets in the balance sheet. However, it does affect the dividend payout even though the company still made money.
Maybe the wrong thing is why the management valued the acquisition too high.
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No post here on this company since 2013! I have had a small holding for many years, as it has been a good dividend stock although very, very boring, typically sitting somewhere between 8c and 12c. I have been wondering why this very boring old dividend stock suddenly shot up over the last few days to 35c and counting. I knew that made some medical tubing, but hadn't realised the full range of products, including:
Laryngeal mask
Respiratory airways
Diagnostic devices
Drug delivery systems
Enteral feeding catheters
Infusion sets
Wire reinforced tubes
Optically clear components
Patient monitoring devices
The relevance to today's world is obvious. Unfortunately, i have been busy researching new investment possibilities and not spending enough time checking out old, boring holdings. I am lucky that the dividend was so good at the old price that it never got sold off in my periodic tidying of my holdings.
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(07-08-2020, 09:26 AM)Dosser Wrote: No post here on this company since 2013! I have had a small holding for many years, as it has been a good dividend stock although very, very boring, typically sitting somewhere between 8c and 12c. I have been wondering why this very boring old dividend stock suddenly shot up over the last few days to 35c and counting. I knew that made some medical tubing, but hadn't realised the full range of products, including:
Laryngeal mask
Respiratory airways
Diagnostic devices
Drug delivery systems
Enteral feeding catheters
Infusion sets
Wire reinforced tubes
Optically clear components
Patient monitoring devices
The relevance to today's world is obvious. Unfortunately, i have been busy researching new investment possibilities and not spending enough time checking out old, boring holdings. I am lucky that the dividend was so good at the old price that it never got sold off in my periodic tidying of my holdings.
I was not so lucky Dosser. Had a tiny bit which I sold off too early!
"You are right not because the world agrees or disagrees with you, rather you are right because your facts & reasoning are right."
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23-08-2020, 01:32 PM
(This post was last modified: 24-08-2020, 05:02 AM by ngcheeki.)
The following is the reply from Vicplas. Basically, the company does not know the reason for
the surge in share price.
https://links.sgx.com/1.0.0/corporate-an...ueries.pdf
At last close price of 59 cts,
Price $0.5900
Price to Book 4.9213
Price to NTA 5.0220
Average Dividend $0.075
Yield 1.27%
EPS $0.0092
PE 64X (extrapolate from 1H2020)
Even if the 2HFY2020 is exceptionally good, e.g. 3x better than 1H, the PE will be 32X.
Furthermore, base on the SGX disclosure by Ng Cher Yan (Non-Executive director), there are activities of borrowing vicplas shares.
https://links.sgx.com/1.0.0/corporate-an...1V2_CY.pdf
Current price of vicplas is too high base on fundamental data above!!
Not vested
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(23-08-2020, 01:32 PM)ngcheeki Wrote: The following is the reply from Vicplas. Basically, the company does not know the reason for
the surge in share price.
https://links.sgx.com/1.0.0/corporate-an...ueries.pdf
At last close price of 59 cts,
Price $0.5900
Price to Book 4.9213
Price to NTA 5.0220
Average Dividend $0.075
Yield 1.27%
EPS $0.0092
PE 64X (extrapolate from 1H2020)
Even the 2HFY2020 is exceptionally good, i.e. 3x better than 1H, the PE will be 32X.
Furthermore, base on the disclosure by Ng Cher Yan (Non-Executive director), there are activities borrowing vicplas shares.
https://links.sgx.com/1.0.0/corporate-an...1V2_CY.pdf
Current price of vicplas is too high base on fundamental data above!!
Not vested
maybe cos of this? ==> https://www.facebook.com/hengsweekeat/vi...8qDYGzzGSS
Forefront is VicPlas subsi
Nowadays anything to do with healthcare will sure be under speculators' radar
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(24-08-2020, 02:01 AM)angelzsoul Wrote: (23-08-2020, 01:32 PM)ngcheeki Wrote: The following is the reply from Vicplas. Basically, the company does not know the reason for
the surge in share price.
https://links.sgx.com/1.0.0/corporate-an...ueries.pdf
At last close price of 59 cts,
Price $0.5900
Price to Book 4.9213
Price to NTA 5.0220
Average Dividend $0.075
Yield 1.27%
EPS $0.0092
PE 64X (extrapolate from 1H2020)
Even the 2HFY2020 is exceptionally good, i.e. 3x better than 1H, the PE will be 32X.
Furthermore, base on the disclosure by Ng Cher Yan (Non-Executive director), there are activities borrowing vicplas shares.
https://links.sgx.com/1.0.0/corporate-an...1V2_CY.pdf
Current price of vicplas is too high base on fundamental data above!!
Not vested
maybe cos of this? ==> https://www.facebook.com/hengsweekeat/vi...8qDYGzzGSS
Forefront is VicPlas subsi
Nowadays anything to do with healthcare will sure be under speculators' radar agree.
Aspen is one good example.... "THE PROPOSED DIVERSIFICATION OF THE GROUP’S BUSINESS TO INCLUDE MANUFACTURING AND DISTRIBUTION OF RUBBER GLOVES AND OTHER RELATED ACTIVITIES (“PROPOSED NEW BUSINESS”)"
https://links.sgx.com/FileOpen/AGH_Propo...eID=627415
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Yes....Mr Market priced it as though the plants is built and the gloves are sold....
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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15-03-2024, 07:36 PM
(This post was last modified: 15-03-2024, 07:36 PM by dreamybear.)
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