5) HupSteel. This is yet another wonderful company and I am still one of its shareholders. I make capital gain out of it before and bought it again when it retreated. Only that now I stuck with this counter but without regret. This is because HupSteel is still a wonderful company earning some decent return. I remember one of ex-colleagues bought HupSteel in 90s at around $0.70. Back then, HupSteel was known as Hup Seng Huat and my friend got stuck with the company for a very very long time. However, things changed after global economy started to recover in 2004. There was huge demand for metal and HupSteel was riding on solid growth. Its share price went up to $0.60 even after the company issues bonus, rights and giving out good dividend. But today, its share price dropped to $0.215. Let’s take a look on its financial performance and position.
Business: dealer in steel products, hardware and property investment holding company.
Report: FY2008
Revenue: surged to S$433.7m (53% variance)
Net profit: surged to S$45.1m (45% variance)
NP margin: 10.4%
Cash: S$27.4m
Working capital: 2.34
LT debt to total capital: 1.8% (very little)
Basic EPS: 7.33 cents
PE: 2.93
NTA: S$0.3298
Yield: 9.3% (excl special dividend)
Director’s remark: demand for steel product to remain strong and full orderbooks from offshore and marine customers.
My remarks: In my opinion, current price does not reflect on the company financial performance and position – it’s under-priced. But then again, we still need to take cue from US economy. So hold on, stay tune and follow this company closely.
6) Pan United. Pan United just another wonderful company and I made a few buck out of it during recent bull run. In fact, I made money out of its subsidiary, Pan United Marine too. Both are wonderful company with strong profit growth and high dividend yield. Pan United is currently traded at $0.44. Let’s take a look at its financial performance and position.
Report: 1H2008
Revenue: surged to S$135.9m (25% variance)
Net profit: surged to S$14.5m (37% variance)
NP margin: 10.7%
Cash: S$53.3m
Working capital: 1.79
LT debt to total capital: 26.5%
Basic EPS: 4.53 cents
PE: 9.71
NTA: S$0.445
Yield: 4.1% (interim excl special dividend)
Director’s remark: positive outlook for FY2008.
My remarks: Pan United’s business is quite diverse and it’s not easy to analyse. However, the company is still profitable and trading at reasonable price. Worth a second look but no hurry.
Business: dealer in steel products, hardware and property investment holding company.
Report: FY2008
Revenue: surged to S$433.7m (53% variance)
Net profit: surged to S$45.1m (45% variance)
NP margin: 10.4%
Cash: S$27.4m
Working capital: 2.34
LT debt to total capital: 1.8% (very little)
Basic EPS: 7.33 cents
PE: 2.93
NTA: S$0.3298
Yield: 9.3% (excl special dividend)
Director’s remark: demand for steel product to remain strong and full orderbooks from offshore and marine customers.
My remarks: In my opinion, current price does not reflect on the company financial performance and position – it’s under-priced. But then again, we still need to take cue from US economy. So hold on, stay tune and follow this company closely.
6) Pan United. Pan United just another wonderful company and I made a few buck out of it during recent bull run. In fact, I made money out of its subsidiary, Pan United Marine too. Both are wonderful company with strong profit growth and high dividend yield. Pan United is currently traded at $0.44. Let’s take a look at its financial performance and position.
Report: 1H2008
Revenue: surged to S$135.9m (25% variance)
Net profit: surged to S$14.5m (37% variance)
NP margin: 10.7%
Cash: S$53.3m
Working capital: 1.79
LT debt to total capital: 26.5%
Basic EPS: 4.53 cents
PE: 9.71
NTA: S$0.445
Yield: 4.1% (interim excl special dividend)
Director’s remark: positive outlook for FY2008.
My remarks: Pan United’s business is quite diverse and it’s not easy to analyse. However, the company is still profitable and trading at reasonable price. Worth a second look but no hurry.
..........To be continue
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