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IPC Corporation
06-04-2011, 12:28 PM. (This post was last modified: 23-10-2013, 03:13 PM by CityFarmer.)
Post: #1
IPC Corporation
I picked up this gem at 11.5 cents and 12 cents recently when it was sold down as a response to earthquake in Japan and just because they had a few properties and hotels in Japan that later confirmed were unaffected.
Big Grin
Quote:Lets look at the figures.

($000)
Current Assets: S$151,860
Total Assets: S$223,779

Current Liab: S$ 51,527
Total Liab: S$ 75,334

Net assets: S$148,445

quick ratio: 2.94

NAV is 27.18 cents

liquidation value per share 14.4cents (current assets minus all debts / ttl n shares)

bought at 11.5 and 12 cents feels like robbing the dead for free. Tongue

Oei Hong Leong has 20% of this counter I might add. Big Grin

source: http://info.sgx.com/webcoranncatth.nsf/V...penelement

lai lai lai all comments welcome Big Grin

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06-04-2011, 05:28 PM.
Post: #2
RE: IPC Corporation Limited
Although it is selling below liquidating value, something to consider :
- it seems that it is not going to be liquidated in the near future.
- it seems dissipating the asset.

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06-04-2011, 11:12 PM.
Post: #3
RE: IPC Corporation Limited
(06-04-2011, 05:28 PM)cyborg Wrote: Although it is selling below liquidating value, something to consider :
- it seems that it is not going to be liquidated in the near future.
- it seems dissipating the asset.

it's not that I hope the company can be liquidated in the near future to unlock the value, rather I'm using this as a measurement or guide to know what my safety net is. Right now if the company were to belly up even if they can't liquidate most of the properties etc .. there's enough cash to clear all the debts and still give me a profit. That's having peace of mind Tongue

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13-04-2011, 10:39 PM.
Post: #4
RE: IPC Corporation Limited
0.25cts Dividend Announcement for IPC Big Grin

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13-04-2011, 11:15 PM.
Post: #5
RE: IPC Corporation Limited
I have been reading their various acquisitions over the past year. Just curious - if we exclude the one-off items, wouldn't they be loss making ? Do you foresee further improvement this year in their profitability ? Thanks
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Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.

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14-04-2011, 12:26 AM. (This post was last modified: 14-04-2011, 12:29 AM by sgd.)
Post: #6
RE: IPC Corporation Limited
(13-04-2011, 11:15 PM)Nick Wrote: I have been reading their various acquisitions over the past year. Just curious - if we exclude the one-off items, wouldn't they be loss making ? Do you foresee further improvement this year in their profitability ? Thanks

You are right on the one off items, but these are already mentioned by IPC chairman & CEO Patrick Ngiam on their company website. The company should by now have probably sold off or divested almost all their non-core assets from it's old businesses and focus in the future on property development or buying/selling of distressed property assets and investing in income producing assets like buying business hotels. It's mentioned that the 3 business hotels they have bought Japan are expected to contribute positively to bottom line but we'll have to wait and see how much impact the recent earthquake will have on the Japanese economy as a whole. But bearing in mind the hotels they bought serve mostly business travellers and not so much tourists. Smile

Quote:On behalf of the Board of Directors, I am pleased to present to you the Annual Report of IPC Corporation Limited ("IPC" or "The Group") for the financial year ended
31 December 2010 ("FY2010").

Year 2010 was a year of implementation of the Group's strategy in Japan - buying and selling of residential apartment units and investment in income producing properties, business hotels in particular.

The buying and selling of foreclosure Single Family Residential ("SFR") units in the USA also contributed to the Group's performance for 2010.

FINANCIAL OVERVIEW

Group sales increased 15.5% to S$23.143 million for year ended 31 December 2010 when compared to S$20.029 million recorded in the previous year. The increase was attributed primarily to the sales of apartment units in Japan and residential properties in USA. Correspondingly, gross profit increased by 50.1% to approximately S$5.379 million as compared to S$ 3.584 million in FY2009.

The Group's other gains of approximately S$6.545 million was mainly attributed to gains of S$4.415 million from the disposal of its "available-for-sale" investments and approximately S$5.028 million from the revaluation of investment properties in Japan whilst weighed down by an unrealised foreign translation loss of about S$3.497 million. The unrealised foreign translation loss was due to the weakening of exchange rate of US dollars and Chinese RMB, and the strengthening of exchange rate of Japanese Yen against Singapore dollars.

With the improvement on gross profit, coupled with other gains and other income, the Group registered a profit before tax of about S$6.668 million and an after-tax profit attributable to shareholders of S$4.824 million for the year ended 31 December 2010.

As at 31 December 2010, the Group's cash and cash equivalents remain at a strong position of about S$68.717 million as compared to S$55.395 million in the previous corresponding period.

With our healthy cash position, IPC shall continue to proactively seek for new opportunities and to implement its defined strategies.

DEVELOPMENTS IN FY2010

The Group's twin-strategy in Japan -- buy-sell activity in residential apartment units and investment in income producing properties, primarily focusing in business hotels, has taken shape for the year under review.

At the end of Q1 2010, the second purchase of residential apartment units comprising of 50 units located in Tsuchiura, Japan was bought for JPY 190 million. All the units were completely sold in the year under review.

On 26 April 2010, the Group purchased a distressed uncompleted condominium project comprising 77 apartments at Uraga, Japan and development is in progress and scheduled for completion in the 1st half of 2011. Contribution shall be recognised upon completion as the whole project has been sold. This is the third residential project, which the Group had purchased since venturing into the Japanese property market.

On the investment in business hotels in Japan, the Group purchased the first two business hotels in Tokyo - Asagaya (112 rooms) and Asakusa (96 rooms) with a total acquisition cost of approximately JPY 1.866 billion or around S$28 million. Operations for the said two hotels have started since 7 August 2010 and they are managed under the "Smile" brand. The two hotels are expected to contribute positively to the Group's performance.

The Group on 21 Dec 2010 acquired a third business hotel (208 rooms) in Okayama, Japan with a total acquisition cost of approximately JPY 711 million or S$11.09 million. The Okayama hotel is leased with a fixed term till end of September 2020 to KK Greens, which operates more than 50 hotels by its group of companies in Japan under the "Comfort" brand. The Okayama hotel shall have a positive contribution to the Group from FY2011.

The buy-sell activity of Single Family Residential ("SFR") units in USA is ongoing, albeit at a slower pace due to the irregular foreclosure issues faced by the major banks.

The Group is continuing its efforts to evaluate and invest in business hotels in Japan with a plan of building a portfolio of income producing assets. In addition, the Group's unit in China continues its property consulting and investment (PCI) activity in the 2nd tier cities.

FUTURE PLANS AND PROSPECTS

Having established a more in-depth presence and stronger connection in Japan, the Group will continue its strategic thrust in buy-sell activity as well as investment in income producing properties. The Group shall also be venturing into acquiring of land to develop and sell.

In addition, the Group will continue to execute its strategies in the USA and China.

DIVIDEND

In appreciation of the support demonstrated by our shareholders in FY2010, the Board of Directors is recommending a final dividend of S$0.0025 per ordinary share.

WORD OF APPRECIATION

On behalf of the Board of Directors, I would like to take this opportunity to thank our shareholders, management team, business associates and our valued customers for their dedication, support and contributions made to the Group for the past year. We look forward to your continual support as we strive to create greater shareholder value for all in 2011.


NGIAM MIA JE PATRICK
Chairman & Chief Executive Officer

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14-04-2011, 10:33 AM. (This post was last modified: 14-04-2011, 10:36 AM by corydorus.)
Post: #7
RE: IPC Corporation Limited
The company was once a relatively PC giant. Unfortuately they were not able to manage the business to expectation.
Same Management is still there.

I doubt you will ever get to see the cash returned to shareholder. Neither do i think it will go bust.


Cory

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14-04-2011, 11:57 PM.
Post: #8
RE: IPC Corporation Limited
(14-04-2011, 10:33 AM)corydorus Wrote: The company was once a relatively PC giant. Unfortuately they were not able to manage the business to expectation.
Same Management is still there.

I doubt you will ever get to see the cash returned to shareholder. Neither do i think it will go bust.


Cory

IPC was once a PC giant but became a casualty in the PC wars back in the 90s is not because they couldn't manage the business to expectation. The PC industry back then was under intense competition from cheap clones and peripherals that were mass produced from Taiwan.

If you cannot remember the other local casualties were Compro, ACS, Primefield, Ranger and Datamini. Datamini was a very huge global player that went under, Ranger Computer was a product from Wearnes Brothers the very same company that is also listed on sgx they too threw in the towel, would you also like to say they couldn't manage it to expectation then? Big Grin

I think IPC did pretty well manage to exit loss making business and transform into property developer returning to the path to profitability.

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15-04-2011, 08:01 AM.
Post: #9
RE: IPC Corporation Limited
I think the demise may have started with emerging HP computer predicting they will overtake IPC which they did. Not sure about other brands mentioned locally. I do remember there were market consolidation that time as size and brand matters. It is still today.

Currently they seem to be engaging more in trading/speculation of property rather than as a developer. Nothing wrong with that. As investor, EPS and long term profitability still matter.


Cory


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Just my Diary
corylogics.blogspot.com/



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01-05-2011, 07:54 PM.
Post: #10
RE: IPC Corporation Limited
IPC Corp First Quarter Results Big Grin

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