Post Reply
1-20 of 26
I know that most of you here vested, but export to US and Europe will be affected for sure..going forward..
maybe they can do well in China..but no way for US and Europe..with them in recession and comsumer tighten belt..jobless rate increasing???..you dont be blinded by the forcast figure..
hope u dont mind.sorry
hsbhsb ( Date: 16-Nov-2008 17:10) Posted:
|
pretty good set of Q2 and 1H results, particularly the sales to US.
pity market sentiment not there.
and so another bargain waiting for its time... hahhaha.
useful information on furniture stock
Report by DMG.
High oil prices (resulting in volatility in the cost of raw materials such as leather and petrochemicals) and the weak US dollar could have a negative impact on Man Wah's performance. However, management remains optimistic that its growth strategies would help it ride out these challenges. Man Wah currently supplies to more than 30 of the top 100 largest furniture retailers in the US, compared with 20 such customers in FY07. Despite the US sub-prime crisis, Man Wah has been successful in raising the ASPs of its sofa models and securing new customers in the US market. Through new product launches and marketing efforts, management expects its order book from the US market to continue growing.
On the domestic front, management plans to increase the number of "Cheers" specialty stores from the 213 stores at end FY08, to 300 stores in FY09. Contribution to revenue growth is also expected to come from its expanded production capacity (increased by 150,000 sets per year) at its Huizhou Daya Bay facility. Management expects utilization of the expanded production capacity to reach 50% by FY09, and full utilization is expected by FY10.
We are estimating earnings of HK$195.9m (EPS: 29.4 HK cents) for FY09 and HK$217.6m (EPS: 32.7 HK cents) for FY10, after factoring in lower other income and higher selling and distribution expenses. The US market remains a significant contributor to Man Wah's revenue, accounting for 43.0% of total revenue in FY08. Management has been putting in efforts to shift its reliance from the US market to the China market. We ascribe a PE of 9x FY09 earnings and arrive at a target price of $0.46. Maintain BUY.
DBS Vickers 27 Nov 2007
Story:
for shareholders to improve share trading liquidity. Our fair value is revised higher to
S$1.18; using a similar 10x blended FY08/09 PER.
Man Wah recently proposed a 1-for-1 bonus share issue��
PER and 4.5x FY09 PER (financial year ended March), which is
undemanding even if we factor in the current market weakness.
Indeed, at our fair value, the use of 10x blended FY08/09 PER
represents about 50% discount to its peers? current 19x. We
project 52% net profit CAGR for Man Wah in our FY08-10 forecast
periods, which implies an attractive 0.2x PEG at our new fair value.
Point: Man Wah?s share price is currently trading at 6.3x FY08��
indicate positive sales outlook for both its export and domestic
markets in October/November, while the stable raw material price
trend is likely to support a normalised gross margin of 30% in
2H08. Hence, we have kept our net profit estimates unchanged at
HK$176.7m in FY08 and HK$243.6m in FY09. Maintain BUY.
Relevance: Our recent conversations with managementAttractive current net dividend yield.
per share of interim net dividend, with the ex-dividend date on this
Friday, 30 November. We expect Man Wah to pay another HK$0.0668 per
share of final dividend for 2H08, equivalent to 25% of net profit. Man
Wah?s current net dividend yield is 4.0% for FY08 and 5.5% for FY09.
smart money bought into Man Wah - back in July!
see: http://www.nextinsight.com.sg/content/view/43/55/
Man Wah is in same business as Cacola. If Cacola can tarde at $0.50, Man Wah would be able to trade at double. Reason is simple - Man Wah sales and profit is at least twice of Cacola.
The share price of Man Wah doesn't run wild like many other shares because, I believe, the investors are not small players.
With the latest announcement of profit, the issue of interim dividend, the issue of rights share and warrant, effectively it's bringing the share price down to about $0.3, and so it has lots of opportunity to grow again. Think - how can the share be valued less than Cacola if their profit is much more?
Here is the latest report from ocbc :
Man Wah Holdings Ltd (MWH) reported a robust set of 1H08 results that exceeded our expectations. Revenue surged 82.0% YoY to HK$684.3m, while net profit rose 79.2% YoY to HK$87.0m. Gross profit margin improved to 30.4% (+3.9ppt YoY; +4.9ppt HoH), while EPS grew 76.9% YoY to HK$0.261. The stellar growth was supported by broad-based improvements across all its key geographical segments. Sales from its North America, Europe, PRC and Hong Kong units recorded YoY improvements of 137.9%, 77.8%, 142.6% and 28.2%, respectively. MWH has declared an interim dividend of 6.53 HK cents, and has proposed a 1-for-1 rights issue and a 1-for-2 free warrant at an exercise price of S$0.03. Having exceeded our 1H08 projections, we are raising our FY08 revenue and net profit estimates to HK$1.4b (previously HK$1.2b) and HK$164.4m (previously HK$141.2m) respectively. Based on a revised 9x blended FY08/09 PER, we derive a fair value estimate of S$0.99, which represents an attractive 34% upside potential. Maintain BUY.
sold all at 0.73, will wait for it to go down to below 0.60 again.
Is Man Wah a poison? or phillip is wrong, as POEMS has made a sell call for this baby? its fair price is ~40+ cent!! usually the trading vol is quite low but todays is quite high but i missed out the chance to escape. quite worried now. thks for comments and suggestions.
Man Wah Holdings Limited
by Jenna Koh
��
FAX 65-6536 4435
65-6531 1221�� jennakohsq@phillip.com.sg22 October 2007
Man Wah Holdings Limited (?Man Wah?) announced on 16 October 2007 that
Schieder Cheers GmBH, a company which is 40% owned by Man Wah and 60%
by the Schieder Group, has been declared insolvent by the German courts as a
result of its parent company, the Schieder Group being declared insolvent.
Insolvent German associate.
incorporation of the above named subsidiary with the Schieder Group. The subsidiary
was to act as a sales agency of furniture and furniture parts of Man Wah to be sold
inland and abroad. Since the inception of subsidiary, the European market has
contributed approximately 20.32% of the Group?s revenue; hence with the insolvency
of the subsidiary, we anticipate the European market?s contribution to the Group?s
revenue for FY2008 to decline by approximately 10% (before the inception of the
subsidiary, the European market contributed approximately 10% of the Group?s
revenue).
On 8 February 2007, the Group announced theResting on laurels? Not just yet.
investors of their positive financial performance for 1HFY2008, stating substantial
increase in the Group?s net profit before tax resulting from enhanced marketing
efforts, higher productivity, and successful implementation of price increases across
its product lines and stabilisation in the price for raw materials. However, with the
insolvency of the European subsidiary, we believe that 2HFY2008?s results will a
better gauge of the Group?s profit growth.
The Group has issued a statement informingIncrease in spending.
Furniture Industrial Park is still in the pipeline. With the commencement, we would
anticipate higher spending by the management in FY2008.
Phase 3 of the construction of the Man Wah HoldingsUnresolved housing woes in US.
sales in the US have dropped to a seven (7) year low. According to Bloomberg, the
housing market situation will worsen as stricter lending rules and higher mortgage
rates make it more difficult for potential buyers to get financing.
Following on from the initiation report, homeTechnical view of Man Wah?s shares.
expected in the near term as MACD turns negative with trading support at S$0.65
and S$0.615 per share.
According to Figure 1, weakness isReiterate sell.
derived from a P/E of 7x (based on the Group?s P/E band) pegged to FY2008
earnings, implying a 42.25% downside. Our negative view is based on the technical
outlook of the Group?s shares, insolvency
Summary: Man Wah Holdings Ltd (MWH) posted an impressive 58% YoY increase in 2H07 revenue to HK$476.5m in May 2007. However, net profit grew only 1.3% YoY to HK$42.2m. The lackluster bottom-line was largely due to increased cost of leather, a key raw material for MWH. To tackle this, MWH has sought to increase the average selling price of its products to stabilize net profit margins in FY08 and beyond. Recent and on-going expansion will add about 194% to MWH?s production capacity. We are projecting a 45% rise in FY08 revenue to HK$1.2b and a 23% increase in net profit to HK$111.1m. Based on 8x blended FY08/09 PER, we are moderately lowering our fair value estimate to S$0.579 (previous S$0.615), as MWH continues to tackle rising leather and labour costs, as well as forex risks from the appreciation of the yuan against the USD. At current price level, we are maintaining our BUY rating. (Lee Wen Ching)
From OCBC.