Beyonics   

Beyonics

 from sgx:  http://info.sgx.com/webcorannc.nsf/37e9d50ee377b2304825735f00233861/1480be583066f212482573b00036ab25?OpenDocument


 

from Lim & Tan

Beyonics
1Q ended Oct 2007 net profit fell a worse than
expected 48% yoy and 49% qoq to $3.64mln
reflecting worse than performance of the contract
manufacturing business division (business fell 17%
yoy due to weaker than expected orders from
Dell's battery pack business and Panasonic's
mobile phone business) as well as forex loss of
$4.3mln (16 fold increase yoy).
Looking ahead, while management expects a better
sales performance going forward with the recovery
of the battery pack & cordless phone business as
well as additional contributions from their
acquisition of Senai Seagate at the end of the year,
bottom-line performance remains vulnerable due
to volatile raw material costs and continued
weakness of the US$.
As a result, we are reducing our full year net profit
forecast from $30mln to $25mln, which is flat from
last year, giving a forward PE of 8x, which is about
in line with its historical trading range, but at a
discount to the 11-12x PE of the takeout valuation
of MMI, Amtek and Seksun. We are downgrading
our call from Buy to Hold.

 

taybc,

from share investment 317 data, Beyonics  Div 2 cents, PE 8.9,  Div 4.7% with closing price at end Oct of 42.5 cents. NAV 54.4cents


What I think tuantan meant was IF Beyonics is VALUED the same as SekSun takeover valuation, then Beyonics would be either priced at 97%% premium (1.97*54=106cents) or PE 13 ( 13xearning of 4.8 cents = 62.4cents).

 

hi tuntan8888, how do you get the PE of 13x? Is this the mean of the past trading band?

 

No BB support so price drifting lower. Just hold and wait till BB are back

If u adopt Seksun's takeover valuation, Beyonics maybe valued in the range of 62.4c to $1.06:

a) @97% premium to NTA of 54c = $1.06

b) @ 13x PE of 4.8c = 62.4c.

 

Read the announcement again: After buying Seagate Senai, Beyonics will secure a 3-yr supply contract with Seagate Inc. Seagate is a prime client for HDD business & Beyonics profile is raised somewhat.

 

Hold.

Beyonics is re-packaging itself to be more attractive for interested parties.

 

so ? Buy or Sell?

 

The Directors of Beyonics Technology Limited (the ?Company?) are pleased to announce that its subsidiaries, Beyonics Technology (Senai) Sdn Bhd (?BTS?) and Beyonics International Limited (?BIL?) (BTS and BIL collectively known as ?Beyonics?), have on 18 October 2007 entered into an agreement (the ?PCBA Asset Purchase Agreement?) to purchase the business and certain assets of Senai Seagate Industries (M) Sdn Bhd (?Seagate Senai?). In connection with this, BTS has also entered into an agreement dated 18 October 2007 (the ?Building and Leasehold Purchase Agreement?) with Seagate Senai to purchase from Seagate Senai its leasehold land and building located at PLO 171, Jalan Perindustrian 7, Kawansan Perindusrian Senai III, Senai, Johor, Malaysia (the ?Senai Factory?). As part of the overall arrangements, BIL has also on 18 October 2007 entered into a PCBA supply agreement (the ?PCBA Supply Agreement?) with Seagate Technology International (?Seagate International?).

Subject to the fulfilment or waiver (as the case may be) of certain conditions precedent, the closing date for the completion of the PCBA Asset Purchase Agreement, the Building and Leasehold Purchase Agreement and the PCBA Supply Agreement (collectively the ?PCBA Agreements?) is scheduled to be on 28 December 2007 (the ?Closing Date?).

1. The PCBA Asset Purchase Agreement and Building and Leasehold Purchase Agreement

Under the terms of the PCBA Asset Purchase Agreement and Building and Leasehold Purchase Agreement, Beyonics will purchase from Seagate Senai the business and certain assets of Seagate Senai, including but not limited to the Senai Factory, equipment, fixed assets, contracts and inventory.

The completion of the PCBA Asset Purchase Agreement and the Building and Leasehold Purchase Agreement is subject to the satisfaction of certain conditions precedent by the parties, including the following:

(i) the representations and warranties provided by each of the parties being true and accurate in all material respects as at the Closing Date;

(ii) each of the parties having fulfilled and complied with their covenants and obligations in all material respects through the Closing Date; and

(iii) each of the parties having obtained all necessary permits, licences and governmental approvals as may be required.

The purchase consideration pertaining to the PCBA Asset Purchase Agreement and the Building and Leasehold Agreement will be funded by internal funds and bank borrowings. The purchase consideration is arrived at through a confidential and competitive bidding process and cannot be disclosed because of confidentiality requirements imposed on Beyonics. However, the Company wishes to state that the purchase consideration does not amount to a major transaction under Part VII of Chapter 10 of the SGX Listing Manual and is not expected to have a material effect on the earnings or net tangible assets per share of the Company for the financial year ending 31 July 2008.

2. The PCBA Supply Agreement

Under the terms of the PCBA Supply Agreement, BIL has agreed to supply PCBA products to Seagate International for an initial period of three years based on specifications and descriptions provided by Seagate International. While Beyonics believes that the annual revenue arising from the PCBA Supply Agreement could contribute positively to group revenue, it is not expected to have a material effect on the earnings or net tangible assets per share of the Company for the financial year ending 31 July 2008. It should be noted that the actual revenue will be subject to various factors such as changes in the level of world economic activity; strength of the hard disk drive industry; market demand for Seagate?s products; impact of changes in foreign exchange rates, price fluctuations and availability of raw materials and components; manufacturing delays or disruptions to Beyonics? manufacturing facilities etc.

The Board is of the view that the entry into the PCBA Agreements will further strengthen the strategic partnership which the Beyonics Group has with Seagate, and that the arrangements which have been entered into by the subsidiaries of the Company as described in the foregoing are in the best interest of the Company. These arrangements will enable the Beyonics Group to enhance its position as one of the leading contract manufacturers. The Senai Factory will be an important addition to the regional presence which the Beyonics Group has.

 

Ooops !!! I think buyout will not happen for the next 12~24month.

And with this type of acq. ,they may not pay dividend this year, I guess.

 

 

False hope! They did the opposite (of Seksun) to buy Seagate Senai for an undisclosed amount?. Investors looking for takeover news would be most disappointed now.

 http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_ED9692A99612C2D7482573790017EB8C/$file/Announcement.pdf?openelement

 

Singapore Hot Stocks-Seksun up on news of $202 mln asset sale



SINGAPORE, Oct 19 (Reuters) - Shares of Seksun Corporation rose as much as 2 percent to S$0.76 with 7 million shares traded after the company said it was selling assets for S$295 million ($202 million) to Super Nova Ltd.

The firm, which makes parts for hard-disk drives, said in a statement that S$270 million earned from the sale would be distributed to shareholders and that the company would remain listed in Singapore after the sale although it would change its name.

Seksun was the third most actively traded counter on the Singapore bourse.

Let's keep our fingers and legs cross that Beyonics is also going the same direction.

 

still no news/announcement on Beyonics!

seksun (also in same trade HDD) just announce takeover by pte equity group, Citi CVI at 97% premium above NTA, i.e. about 80c.(8pm)

http://info.sgx.com/webcorannc.nsf/ef3ba6cb188613ea482571b2003641d3/4170b99d8b9649a84825737800341361?OpenDocument

 

been keeping this baby for so long...dont mind keep another few more months...

 

Ya... waited for months just for M&A announcement.

Hope this time, we can have early x'mas.

 

Hope is related to Pte equity buyout (by KKR or Nidec Japan), have to wait for further announcement.

See Buy Q up @ 53c now while sellers at 48.5c withdrawing. It could also be they are buying others, in which case it wouldn't be so good news then. Keep our fingers crossed 4 the best.

 

M&A?

If yes, can start queuing now.. hee...

Can see the buy queue at $0.53.

 

M&A?

 

Trading halt at 1400hr.. Anyone any news??

 

Strongest PMI reading in 10 months. Thanks to an across-the-board recovery, overall and tech PMI rose to their highest readings this year. Overall PMI rose 2.2 points to 53.9, the highest reading since Nov 06?s 54.6, while the all-important tech PMI hit 53.9, the highest reading since Dec 06?s 55.4, with new export orders hitting a 40-month high of 60.2. And probably due to the stronger export orders, tech manufacturers added more workers in September, pulling the tech employment PMI to 53.5, the third straight month of positive reading, and the highest in nearly 1.5 years. The tech sector in Singapore certainly looks like it is on the road to recovery. Tech output is projected to expand 3.5- 4% yoy in 3Q07 vs. 1H07?s 1.5%. The latest PMI reading supports our view that the recovery in 3Q manufacturing will underpin 3Q GDP growth of 10% yoy or 9% qoq annualised.

 

Lim & Tan Securities Pte Ltd: Daily Review, 2 October 2007  

 

 

 

HDD SECTOR

 

Bullish Outlook

 

�� Hitachi rose 7% on the back of news that it has appointed Merrill Lynch to look for buyers for its HDD unit. Hitachi?s HDD unit is expected to post 12% increase in sales to US$5.5bln for year ending March ?08 and is expected to turnaround from last year?s loss of US$377mln. This will represent its first year of profit since Hitachi?s acquisition of IBM?s HDD unit in 2002.

 

�� Recently Seagate revised upwards its Sept ?07 quarter sales forecast from US$2.95bln to

 

US$3.2bln and earnings per share forecast from 35-39 cents to 57-61 cents due to industry unit demand at the higher end of their forecast range, favourable pricing with a more balanced supply and demand environment and better product mix.

 

�� Western Digital also revised upwards its Sept ?07 quarter sales forecast from US$1.48bln to US$1.63bln and earnings per share forecast from 43-47 cents to 61-65 cents, reflecting stronger than expected demand conditions, better than expected

 

product mix and pricing environment.

 

�� Both stocks have rallied almost 30% in the last 1-2 months and are just slightly off their 52 week highs.

 

COMMENTS

 

1. Locally, we understand that major HDD suppliers such as Beyonics, Seksun, Unisteel and Armstrong are seeing a strong pick up in orders from their customers in 3Q2007 as well as robust forecast orders for 4Q2007. This is in line with their major customer?s forecasts mentioned above.

 

2. Hitachi?s suppliers are predominantly Japanese companies with a high cost structure, hence if Seagate and Western Digital were to acquire it, local suppliers would stand a high chance of gaining incremental orders from the Japanese suppliers.

 

3. Historically, Hitachi has been one of the major culprits in de-stablizing the pricing environment for Seagate and Western Digital due to their aggressive business expansion plans, hence with their exit from the business, it would mean more rationale industry

 

pricing environment going forward.

 

4. We have buys on Beyonics, Unisteel and Armstrong and Hold on Seksun due to fair valuations.