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Actually, fair value for shares in SGX can be computed, the problem is it may be difficult for novice investor to compute it and is usually provided by research house. But, we should not
take recommendation blindly from research house.
Keke.. NTUC got fair price but not SGX...
Triangle > meaning its the price now, in between 0.495~0.500.
Any idea what is the Fair Value or Target Price?.
Triangle shape forming well... Worth a look.
Should be anytime up up and away..
BBs buying up quietly.........Target Price $95cents
BUY NOW......
Thanks Limbei!
But unfortunately I don't subscribe to it. What did they mention inside?
Hi All,
I heard that Tai Sin was/is involved in lots of upscale develoments, and the circle line contracts. Now it is expected to clinch some IR contracts too. Any of you heard of these rumours?
Also, in the CIMB/Kim Eng report (I cant remember which) it said Tai Sin has 30% market share, 2nd in Singapore. Anyone knows who is 1st? Vested by the way.
Like that more like it lar. Keep the sunshine radiating.
At lest for now, cross over 50cents for a stock that is worth much more related to its biz for Singapore Marina+Sentosa IR project worth.
Finally, ppl in the market realising what they are missing out.
Comon, get it going.
Go Go Go.
The sun is shining hard.
We are seeing some upward buying up now.
Had it been recognized? Comon, get it going.
Go Go Go.
A LEADING electric cable producer in Singapore: Tai Sin was incorporated in 1980, with its main business the manufacture of electric wires and cables used purely to transmit low-voltage electricity. It is the second largest producer (30 per cent local market share) of electric cables in Singapore.
Demand growth likely to be well ahead of supply potential: We believe demand for electric cables in Singapore alone should continue to outstrip local supply. Contractors can import cables but usually at a higher shipping component cost with a longer delivery time line. Thus local producers will usually be the first stop of choice. We estimate that local producers supplied a total of $340 million worth of cables in FY06. We anticipate $15 billion worth of construction contracts to be awarded in FY07-08, leading to cabling and wiring contracts worth $750 million to $1.2 billion. /
No logic, how can fall below 0.50, while it is already so cheap!!!
Just doesn't make sense. Time will tell.
Sun will continue to shine to dry up the selling, followed by pouring water into well for Abundance.
Ho Seh.
Kim Eng targets $0.70!!!!!!!!! this morning CHEONG AH!!!!!!!!!!
Clear winner
Impressive 34-year earnings track record
Asia Enterprises Holdings (AEH) is a specialist distributor of steel products to industrial end-users in Singapore (60% of revenue), Indonesia (27%), Malaysia (10%) and other Asia Pacific markets. Operating out of 3 facilities in Singapore with a total storage capacity of 46k sqm, the group supplies over 1,200 steel products to more than 600 active clients in the shipbuilding & marine, oil & gas, construction as well as precision metal stamping, manufacturing and engineering industries. The steel distribution business has stayed profitable since inception in 1973 and has never suffered any loss even through difficult times - a testament of AEH?s managerial expertise with a price sensitive commodity like steel.
Excellent proxy to the buoyant offshore and marine industry
With its strong niche in shipbuilding and marine-related sectors, which contritbute ~65% to revenue, AEH is well positioned to ride the secular demand uptrend for shipbuilding plates, pipes and fittings as local shipyards are currently enjoying overflowing orderbooks till 2010. Over 80% of sales are repeat orders. AEH?s major customers include Keppel O&M, SembCorp Marine, Labroy Marine, Jaya Shipbuilding, Pan-United Marine and ASL Marine. The higher value-added products required by the O&M sector has enabled the group to command operating margins of 13-14% vs industry norms of 6-10%. Indeed, AEH?s FY06 net profit of S$15.3m surpasses many of its steel/marine-related peers.
Strong construction pick-up will boost steel demand
Global steel demand is projected to increase 7.5% in 2007 underpinned by rising industrialization and infrastructural spending in Asia, particularly China (+12%) and the Middle East. This has driven up steel prices across the board by 8-20% this year. The construction industry in Singapore is also gaining momentum as more infrastructure and property development projects come onstream and as developers turn to greater use of steel in the wake the export ban on Indonesian sand to Singapore. The group is beefing up its sales force to capitalise on its structural steel segment albeit from a low base.
Solid balance sheet backed by net cash of 7¢ per share
While steel stockists are generally geared due to capital intensive nature of the business, AEH boasts a net cash position of S$19m or 7¢ per share. Stock turnover has also dropped steadily from 162 days in FY04 to 114 days in FY06 reflecting better inventory control, thereby reducing working capital needs. ROA (a key measure of operating efficiency) of 14% is far superior to its competitors while ROE is a decent 20%.
Trading at ex-cash 08 PE of 4x with 8.5% dividend yield
Valuation metrics for the stock are extremely compelling. AEH is currently trading at an ex cash forward PEs of 4.8x and 3.9x and EV/EBITDA of 3.7x and 3.0x for FY07 and FY08 respectively. Applying a conservative FY08 PE of 8x (7.3x ex cash), we arrive at a target price of S$0.70. Given its 40% dividend payout record, AEH offers a potential tax exempt yield of 8.5%. However, investors should be mindful of a temporary share overhang stemming from a recent 5% and further selldown by major shareholder Winstedt Chong (no executive role), which could cap the short term price performance of the stock.
This counter double top will lead to triple top.....if cannot break up 50cents......
Trade with caustion.....maybe to many rights convert to mother share waiting to sell.......
I agree with Livermore.
Tai Sin Electric Cables
April 30 close: 51 cents
CIMB RESEARCH, April 27
A LEADING electric cable producer in Singapore: Tai Sin was incorporated in 1980, with its main business the manufacture of electric wires and cables used purely to transmit low-voltage electricity. It is the second largest producer (30 per cent local market share) of electric cables in Singapore.
Demand growth likely to be well ahead of supply potential: We believe demand for electric cables in Singapore alone should continue to outstrip local supply. Contractors can import cables but usually at a higher shipping component cost with a longer delivery time line. Thus local producers will usually be the first stop of choice. We estimate that local producers supplied a total of $340 million worth of cables in FY06. We anticipate $15 billion worth of construction contracts to be awarded in FY07-08, leading to cabling and wiring contracts worth $750 million to $1.2 billion.
Maintaining spare capacity to take advantage of lucrative contracts: Tai Sin currently runs its Singapore factory at only 85 per cent utilisation (600mt/mth), and its Malaysia plant at a mere 65 per cent (290mt/mth). This is a deliberate strategy by management. Given the impending surge in demand (with the IR being a wild card as there is no legacy model in Singapore to estimate how much wiring will be needed), this spare capacity is needed to take advantage of urgent incremental demand.
Target price set at 96 cents based on 13.5x CY08 P/E: This places Tai Sin at a conservative discount to its one-year average historical P/E (31x) and in line with the earning multiples of Draka Holdings, listed parent of its Singapore peer, Singapore Cables. Tai Sin should blossom as the demand for electric cables in Singapore continue to outpace local production. We initiate with 'Outperform'.
OUTPERFORM
Double Top !
Beware ! Do not buy !
SELL !!!
A double top seems to be forming - may signal reversal of upward trend. Be cautious.