Lets take a look at its dividend history.
Nov 2010: $0.41
May 2010: $0.10
Dec 2009: $0.40
Sep 2007: $0.50
June 2007: $0.55
June 2007: $0.37
Oct 2006: $0.40
Background
Transpac Industrial Hldgs Ltd is an investment company incorporated with limited liability on 7 February 1994. The Company aims to achieve substantial capital appreciation primarily through equity or equity-related investments in growing private companies located in Asia with emphasis on Singapore, China, Hong Kong, India, Indo-China, Indonesia, Malaysia, Pakistan, the Philippines, South Korea, Sri Lanka, Taiwan and Thailand.
The Company is managed by Transpac Capital Pte Ltd, which was formed in late 1989 by combining the resources of Transtech Venture Management Pte Ltd and Techno-Ventures Hong Kong Ltd (TVHK), forming one of the largest private equity investment firms in the region.
Large investments as of 31st Dec 2009:
Foodstar Holdings Pte Ltd (sold)Fortune Code Limited Property and Development
Hansen Limited Consumer Services
Neo-Neon Holdings Limited
Transpac Equity Investment Trust
Ethypharm HK Limited Healthcare
Transpac Capital 1996 Investment Trust
Foshan Nanhai Zhongnan Aluminium Wheel Co Ltd
Transpac Venture Partnership II
Sesame Seed Group Limited
Total cost $133.649 mil
Fair value $201.607 mil
| Period | Full Year Dec 2009 | Full Year Dec 2008 | Full Year Dec 2007 | Full Year Dec 2006 |
|---|---|---|---|---|
| EPS [$] (Earnings/Latest No. Of Shares) | 0.47712 | -0.00794 | 0.81466 | 0.40014 |
NAV [$] (Shareholders' Equity/Latest No. Of Shares) | 1.8034 | 1.2979 | 1.4184 | 2.1055 |
Price Earnings Ratio (PER) (Price/EPS) | 4.63 | n.a. | 2.71 | 5.52 |
Price/Revenue (Price x Latest No. Of Shares/Revenue) | 2.770 | 2.977 | 3.767 | 4.219 |
Net Earnings Margin [%] (Net Earnings/Revenue) | 59.795 | -1.069 | 138.847 | 76.381 |
Revenue Growth [%] ((Current Year Revenue - Last Year Revenue) / Last Year Revenue) | 7.487 | 26.522 | 11.999 | 16.388 |
Net Earnings Growth [%] ((Current Year Earnings - Last Year Earnings) / Last Year Earnings) | n.a. | n.a. | 103.593 | 907.596 |
Return On Assets (ROA) [%] (Net Earnings/Total Assets) | 21.821 | -0.448 | 41.297 | 14.028 |
Return On Equity (ROE) [%] (Net Earnings/Equity) | 26.456 | n.a. | 57.434 | 19.004 |
Current Ratio (Current Assets/Current Liabilities) | 6.101 | 1.832 | 1.806 | 3.335 |
Debt To Equity Ratio ((Total Liabilities - Cash And Cash Equivalents)/Equity) | n.a. | 0.035 | n.a. | 0.254 |
Snapshot of 3rd Quarter Financial report 2010 (Company)
(1) Profit 3mths YOY decrease by 77%
(2) Cash and equivalent drop to 87mil from 127mil
(3) Liabilities drop from 5.6 mil from 9.9mil
(4) cash flow generated drop to -16mil from 56.7mil
(5) EPS (diluted) drop to 5.29 cents from 32.04 cents
(6) NAV: 1.72
Snapshot of 3rd Quarter Financial report 2010 (Group)
(1) Profit 3mths YOY increase by 6%
(2) Cash and equivalent drop to 134mil from 164mil
(3) Liabilities drop from 31mil from 32mil
(4) cash flow generated drop to -3mil from 65mil
(5) EPS (diluted) drop to 5.86 cents from 41.86 cents
(6) NAV: 1.6
On the outlook, dividend history looks pretty consistent and tempting. It seems that only in year 2008, no dividends were issued. A quick look at the financials does show that the company is not in a good state in generating profit, however, it is cash rich at the moment. With the amount of dividends that it is issuing, it is "eating" into the company's reserves.
However, with the 41 cents dvd in mind, i have taken a plunge at $2.19 for a quick trade. The price has run up quite a bit since the announcement on 4th November 2010. I believe by XD, the price of this counter will plunge by 40cents or more.
In the long run, i do think it may not be a good company to hold on to unless its profit generation mechanism has improved. Whether it is a good trade or not, we shall see.
I have made changes to the post under 3rd quarter profit.
ReplyDeleteThe group has achieved a profit of 6% increase YOY. However, under the comprehensive statement, it showed a decrease in profit by 79%.
So what is comprehensive statement?
This is what you get from wikipedia:
Comprehensive income is the sum of net income and other items that must bypass the income statement because they have not been realized, including items like an unrealized holding gain or loss from available for sale securities and foreign currency translation gains or losses. These items are not part of net income, yet are important enough to be included in comprehensive income, giving the user a bigger, more comprehensive picture of the organization as a whole.