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Very active trading today. There seems to be something brewing.
Rumour has been circulatig for a while there could be takeover interest. May be coming now. Any news anyone?
Lawsuit commenced in Judicial District Court (Texas USA) against Meiban. Claims amounted to over US$18m. Must be quite serious otherwise why price dropped so much today......what a waste.!
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_96FA7945281F0832482572DC00346143/$file/Notification_of_claim.pdf?openelement
By CIMB Research - TP raised from 33cts to 42cts. Posted on website after hours, so tomorrow will up some more.
FY06 RESULTS
26 February 2007
Meiban Group Ltd S$ 0.29 @23/02/07
Recovery year Target: S$0.42 Mkt.Cap: S$96.3m
Technology (Components & Periphs)
OUTPERFORM Maintained
MEI SP / MPLS.SI Jonathan Ng +65 6210-8650 ? jonathan.ng@cimb.com MICA (P) 51/03/2006
• Above expectations. Excluding S$0.8m of provisions for the closure of its
• Sales jumped 39% yoy to S$267m in 2H06, powered by both the plastic component and CM businesses. The plastic component business benefited from HP?s higher inkjet printer shipments (HP earlier reported 17-18% yoy volume growth for 2H06) while the CM business gained from a recovery in orders from Dyson with the completion of inventory adjustments and introduction of new costdown models.
• EBITDA margins slipped 10bp yoy to 5.7% in 2H06, affected by continuous pricing pressure from key customers, higher material costs, and losses at the Zhongshan plant. Net profit, however, improved 44% yoy to S$5.5m, marking the first yoy improvement after three consecutive sets (half-yearly) of yoy declines. Meiban?s performance was also markedly better than that of its direct competitor, Fu Yu (FUYU SP, S$0.32, NR), which earlier reported losses of more than S$35m during the same period.
• Gearing remained comfortable at 0.05x. Cash cycle days increased nine days hoh due to longer debtor days (due to backend-loaded sales) and shorter payable days. Meiban declared final and special dividends of 1.0cts and 0.5cts respectively, translating into a decent yield of 5.2%.
• Outlook set to improve in 2007, underpinned by continuous volume growth for both the plastic injection moulding and CM units. We gather from industry contacts that HP?s volume is projected to grow in the low teens in 2007, while Dyson?s business should be driven by 12-month contributions from new lower-cost models. Also, the recent weakness in oil prices will translate into stable material prices, which is positive for Meiban. Its loss-making Zhongshan plant is also expected to turn around in 2H07 on the back of increased business.
• Forecasts and Outperform rating maintained. We have kept our FY07-08 EPS forecasts unchanged, and introduced our FY09 forecast. We have also rolled over our 8x target P/E from CY07 to CY08, lifting our target price from S$0.33 to S$0.42, in line with its historical average. Maintain Outperform. We see catalysts from further evidence of a turnaround and stabilising material prices.
Hopefully, Analysts zoom-in on 2H06 results vs 2H05 - since a full yr comparison does NOT give a fair picture of Meiban's significant turnaround. Meiban performed signifantly better in 2H06 vs 2H05.
- 2H06 Topline Revenue of $267.3m was 39% higher than 2H05
- 2H06 Bottomline Profit attributable to shareholders of $8.8m was 45% higher than 2H05.
The full yr FY06 profit of $8.8m would have been higher than FY05 - IF NOT for :
- $1.7m exchange loss & write-off ;
- $1.9m due to higher effective tax rate; &
- $1.4m FY05 negative goodwill (once off).
| 1H06 | 2H06 | TotalFY06 | 1H05 | 2H05 | TotalFY05 | |
| S$million | S$million | |||||
| Revenue | 208.6 | 267.3 | 475.9 | 244.9 | 191.9 | 436.8 |
| Net Profit | 3.3 | 5.5 | 8.8 | 7.5 | 3.8 | 11.3 |
if you ask me, plastic stocks are the ones that's ve been left out in this bull run.
as the wise says, every dog will have its day///
so what's next?
if you ask me, plastic stocks are the ones that's ve been left out in this bull run.
as the wise says, every dog will have its day///
so what's next?
FY06 results : Revenue grew by 9% but profit down 49% due to plastic costs increased & restructuring. the good news is Meiban seems to have turn the corner - compared to 1H06 results when both revenue & profits were down by 15% & 69% over 1H05. Also, Meiban has performed better then peer FU YU (FY06 loss of 17.9m)
Good chance of bonus issue FY07 - 'cos high retained earnings balance vs. share capital. Any comments pls.
- EPS = 2.7 cts
- NTA = 33.2 cts
- PE = 10.74x
- Final Dividend = 1ct per share
- Special Dividend = 0.5ct per share
- Share capital = $36m
- Retained Earnings = $75m
- Total Equity = $110m
i am heavily invested in SPC, an oil refining company, therefore i may not be objective in my views. victorian's post might be more objective and beneficial to your queries.
Time for this counter to move?
if you are a strong believer in oil price weakness, start accumulating plastic stocks slowly now...
don't expect overnight rewards like Genting, that's my thought...