Armstrong Industrial Corporation Limited is a leading foam and rubber components manufacturer specializing in noise, vibration & heat management for the automotive and electronics industries.
4Q2010 vs 4Q2009
Gross Profit increased by 15.7% to S$15.4 million from S$13.3million with improved Gross Margin
Net Profit attributable to shareholders maintained at S$6.2 million.
Net profit margin declines 0.4% mainly due to JPY appreciation and USD depreciation against SGD.
FY2010 vs FY2009
Record Revenue & Net Profit achieved
Gross Profit increased by 40.5% to S$62.0 million from S$44.2 million
with Gross Margin improving from 25.4% to 27.5%
Net Profit attributable to shareholders grew by 77.1% to S$24.9 million.
Recommends final dividend of two Singapore cents to supplement interim dividend of two Singapore cents, a yield of 10.4% based on closing share price on 24 Feb 2011 of S$0.385.
(1) NeraTel Currently trading at about 39 Cents with 4 cents of Dividends. Stock has proven track record in giving 3 cents dividend.
(2) Lattitude Tree international The company has just released the HY results and has announced a 1.4 cents Dividend. Stock price has closed at 29.5 cents. With the assumption that another 1.5 cents will be given during end of FY result, we can see that the share has achieved a yield of 10%.
(3) New Toyo The current price is 0.245 cents. Has been issuing dividends of 1.27 cents (in May 2010) and 0.97 cents (in Sept 2010). This amounts to a yield of 9.1 %.
Transpac industrial holding is currently giving a dividend of 41cents which will XD on 25th November. With the closing price of $2.21, the yield is almost 19%.
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.
