HuanHsin   

Tomorrow rising star ! Watch Out ! ! !

hi tuntan8888, good analysis you have. where did u get the 97million cash? the balance sheet for Dec06 says Cash & Bank Balances is 67.43, under current assets.

 

Roadblock @ 66c. Once cleared, it should take off above 70c. Some signs of accumulationg.

 

Each share is backed up by 24c solid cash. See the 1Q07 Balance sheet. ($97m cash divided by 400m shares issued = 24c cash per share). Hence solid cash is 40% of the share price (60c).

http://info.sgx.com/webcorannc.nsf/560dd4b031b97d27482571b20043d38c/5ddc8d23240b0927482572d700369c1e?OpenDocument

 

I was so surprised that there is still such an under-valued stock in SGX. 

healthy profit growth, dicounted NTA, outlook not as bad as other Manufacturing factories, moving up of the value chain, active managment of M&A

This morning I bought some at 0.6. Will hold and see till 1 doller at the end of the year.

 

 

Quite disappointed its price isn't moving. HHH is a now the cheapest contract manufacturer (plastic) measured by NTA n PE multiple. Most others already acquired by pte equity. Bear in mind that Templeton n Mackenzie Cundill Funds owned substantial 20% of HHH, these people should be good in creating value for shareholders like us.

 

GE says it has sold its plastics division for US$11.6 billion to Saudi-owned Sabic.

Log on to http://money.cnn.com/bn for the latest news.


NB.  Comparing HHH to GE Plastic, HHH is definitely offering greater value than GE Plastic. I'm positive HHH's value will be realised shortly.

 

Don't say I didn't inform you.

Take note of the following latest piece of news concerning the plastic industry, which could possibly affect the share price of HHH:

 

Fund managers are accumulating HHH. See SGX announcement.

Two major funds hold almost 20% now: Templeton/Franklin (7.9%) & Mackenzie Cundill Investment (12.0%)

http://info.sgx.com/webcorannc.nsf/560dd4b031b97d27482571b20043d38c/a80a528aaac907ca482572db001031a6?OpenDocument

 

The continuaton of OCBC Research (14/5/07), for those interested.

Good 1Q07 results. Huan Hsin Holdings (HHH) posted a good set of 1Q07 results despite the quarter being a traditionally slower one. Revenue, though down 6.4% QoQ, rose by 1.8% YoY to S$197.6m, while net profit surged 57.7% YoY and nearly 106% QoQ to S$14.7m, boosted by S$8.4m one-time gain from negative goodwill arising from the acquisition of a subsidiary. Excluding one-time gains from both periods, operating profit would have fallen 10.7% YoY to S$9.4m. On a segmental basis, revenue for its mould, moulded plastic products segment inched up 2% to S$185.1m, aided by higher orders for notebook casings, notebook peripherals and printer-related products. And despite initial concerns over its notebook casing business, HHH shipped 2.2m units in 1Q07, versus 2.9m in 1Q06, but this included Zhan Yu contribution. We understand that utilization rate was fairly constant at 60-70% YoY. Revenue for its wire, cable and related components segment grew 4% YoY to S$12.1m. Modest QoQ growth in 2Q07. Going into 2Q07, there should be QoQ improvement, as utilization rate has improved slightly for its notebook casing business. And with HHH chasing after the higher margin IMD segment, there is likely to be further margin expansion once the business picks up from the current 5% of sales (HP only customer) to around 10-15% of sales in 2H07 (hoping to get another two more customers). Bigger boost in 2H07. HHH also expects other major boosts to kick in in 2H07. For its JV with Asustek, HHH said it has started the construction of the factory building and production should commence at the end of the year. HHH also expects its other JV plant with Inventec to start production towards end-2007. Both of them will help boost HHH?s total notebook casing capacity to 2.4m units/month, doubling its current capacity. Management is hoping to increase its notebook casing shipment by 10-20% this year. Revising fair value to S$0.75. In view of the better-than-expected 1Q07 results, and the still buoyant outlook for global notebook sales this year, we have bumped up our FY07 earnings estimate by 7% to S$35.1m. Correspondingly, our fair value improves from S$0.70 to S$0.75, still based on 8.6x FY07 PER. We retain our BUY rating.

 

OCBC Research report after their co visit, fair value increase to $0.75 today (14/5/07) but still super laggard, theonly Tech stock with PE of 7x and below NTA by 25%. See Amtek, Seksun n Beyonics all trading above NAV now. Rather disappointed but still holding !

By OCBC Research Mon, 14 May 2007, 08:42:54 SGT Market Pulse: Huan Hsin (14 May 2007)

Huan Hsin: Notebook outlook remains robust

Summary: Huan Hsin Holdings (HHH) posted a good set of 1Q07 results despite the quarter being a traditionally slower one. Revenue, though down 6.4% QoQ, rose by 1.8% YoY to S$197.6m, while net profit surged 57.7% YoY and nearly 106% QoQ to S$14.7m, boosted by S$8.4m one-time gain from negative goodwill arising from the acquisition of a subsidiary. Excluding one-time gains from both periods, operating profit would have fallen 10.7% YoY to S$9.4m. Going into 2Q07, there should be QoQ improvement, as utilization rate has improved slightly for its notebook casing business. And with HHH chasing after the higher margin IMD segment, there is likely to be further margin expansion once the business picks up from the current 5% of sales (HP only customer) to around 10-15% of sales in 2H07 (hoping to get another two more customers). In view of the better-than-expected 1Q07 results, and the still buoyant outlook for global notebook sales this year, we have bumped up our FY07 earnings estimate by 7% to S$35.1m. Correspondingly, our fair value improves from S$0.70 to S$0.75, still based on 8.6x FY07 PER. We retain our BUY rating. (Carey Wong)

 

Don't say I didn't tell you:   BUY recommendation from OCBC Investment Research

Huan Hsin: Notebook outlook remains robust

Summary: Huan Hsin Holdings (HHH) posted a good set of 1Q07 results despite the quarter being a traditionally slower one. Revenue, though down 6.4% QoQ, rose by 1.8% YoY to S$197.6m, while net profit surged 57.7% YoY and nearly 106% QoQ to S$14.7m, boosted by S$8.4m one-time gain from negative goodwill arising from the acquisition of a subsidiary.

Excluding one-time gains from both periods, operating profit would have fallen 10.7% YoY to S$9.4m. Going forward, HHH expects orders for notebook casings and printer-related products to remain strong in FY07, mainly driven by the increasing replacement of desktops by notebooks and greater use of wireless technology. HHH said its key focus is to stay ahead in the notebook casing business by constantly improving its technology.

As for its JV with Asustek, HHH said it has started the construction of the factory building and production should commence at the end of the year. HHH also expects its other JV plant with Inventec to start production towards end-2007. We will be meeting with management for more updates.

For now, we retain our BUY and S$0.70 fair value. (Carey Wong)

 

If u exclude one-off gain of $8.43m, then 1QFY07 profit is actually lower than 1QFY06.

1QFY07 :Profit of $14.65m - $8.43 = $6.23m vs. 1QFY06 of $9.29m

In fact, profit down by about $3m (due to more sundry income in FY06 by $2m, & exchange loss of $1m in FY07).

Revenue slightly higher than 1QFY06 by 2% to $197.6m

NTA = $0.819 (up from $0.782) is about the only consolation !

 

Huan Hsin this evening reported a respectable 64% increase in 1Q07 profit after tax of S$14.652m on revenue of S$197.582m.

The complete report can be viewed at:

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_0AA3B4F55FDAB6A5482572D7003695F1/$file/HuanHsin1Q2007.pdf?openelement

Hopefully, it will cheong-ah in the forward direction in the coming days!

 

 

Huan Hsin Holdings Ltd would like to inform that it intends to release its first quarter results ended 31 March 2007 on 10 May 2007 (Thursday) after 5:05pm. Further notice will be given should there be any change in date. For enquiries, please contact: Mr Lee Say Kean Investor Relations Manager Tel: 65-96364323 / 60-4-4237766 Email: sklee@huanhsin.com.my

 

Thanks to tuntan for your informative comment; will continue to accummulate the stocks. Lots of potential to become a multi-bagger (to use winsontkl terminalogy). Watch this space!

 

I was at the AGM yesterday. The Chairman shared the same sentiment expressed by minority shareholders on the underperforming share prices, vis-a-vis MMI, Seksun, Amtek that moved up strongly. Someone suggested that increase dividend payout & issue bonus shares will enhance shareholder's value. With its retained earnings of $160m vs. shareholders equity of $150m., it could issue big bonus of 1:1, if it wanted to & bonus issue will not cause price fall due to its substantial discount to NTA of $0.78 & low PE of 7x now.

 

Pursuant to Clause 704(14) of the Listing Manual of the SGX-ST, the board of Directors of Huan Hsin Holdings Ltd (the "Company") is pleased to announce that at the Annual General Meeting (the "AGM") of the Company held on 23 April 2007, all the resolutions set forth in the Notice of the AGM dated 4 April 2007 were passed by the Shareholders.

 

Huan Hsin will be holding its' AGM Monday, 23 April 2007. Believe there will be good news coming along. Hold on tight and see the climb in its' share price this week. Trust there will be a research housing coming up with a new research report on Huan Hsin shortly. Watch this space for the latest happenings at HHH.

 

Strong support at 59c. Looks like it is going to breakout from this tight range to go to unchartered waters! AGM next Monday, 23-4. Remember BB Templeton and Cundill both own around 10% each of Huan Hsin. Have faith, and watch the climb shortly.