Teckwah   

Teckwah - today many buyers

Inventory

  based on their half yr 2010 & 2011 cashflow statement, inventory increased a total of $2.75m over the 2 yrs to $19.6m.  Thereby reducing cashflow by $2.75m. 

So what about inventory turnover? i.e. Raw materials & consumables used / (divided by) inventory.

Since we r looking at their latest half yr financials, lets look at their similar numbers going back till 2006.

2011 : 1.53x

2010: 1.51x

2009: 2.55x

2008: 2.54x

2007: 2.04x

2006: 3.70x

Notice anything?  So what happen?  I don't know leh.  Again, maybe someone can go ask them and let me know.

 

Trade receivables and payable

 

 

You know how in most companies, receivables and payable tend to move in tandum with each other, i.e. when receivable increase, so does payables, and vice versa. For Techwah based on their half yr 2010 & 2011 cashflow statement, these 2 moved in opposite directions. Trade receivable grew $3.2m, while trade payables fell $7m. That a total of $10.2m effectively reduced fr cashflow.

 

Why leh? Don't know. Maybe someone can ask them and tell me.

 

 

Sori for the mess, the numbers as follows: 

 

2011Jun                  2010Jun

 

7,935                           11,635

 

 

314                                 (3,530)

 

(1,594)                       (1,155)

 

(3,960)                       (3,043)

 

2,695                           3,907

 

 

 

But really, in my opinion, they don't even need that amount.

You know how in the children story books, pirates like captain " Cook" is always trying to bury away his hidden treasure?

So how does this apply to Teckwah?  I think the below is quite self explanatory. you decide for yourself lah.

From their latest half yr " unaudited" cashflow statement.......

                                                                                                                                                                                              2011Jun                  2010Jun

 

Operating profit before working capital changes                               7,935                           11,635

 

 

Trade and other receivables and other assets                                                       314                                 (3,530)

 

Inventories                                                                                                                                                             (1,594)                       (1,155)

 

Trade and other payables                                                                                                                 (3,960)                       (3,043)

 

 

Cash generated from operations                                                                                   2,695                           3,907

 

 



 

 

So they just need to borrow $3m?  Yup.  More or less around this relatively tiny amount.

 

So if the rights issue does happen, it is likely they gonna give u some BS explanation as to why it needs to happen.   

So is it really necessary?  Let me put a nail into this coffin.

1st, Teckwah is one of the rare companies that maintain a high Net cash position.  For those of you that don't understand what net cash is, basically means money/ cash (kept in a Bank) minus all borrowings.    How much net cash?  $41.5m based on their latest  reporting!

This is more than enough to fund the land purchase of $7.7m, plus the 3 yr estimated construction  cost of $27.2m.  In addition, almost enough to fund the 3yr equipment/" machinery" comitment.  Just shy of about $3m. 

 

 

So why am I bringing this up?  WHy?  coz  I have a strong feeling they r trying to pull off a " CK Tang" .  For those who don't understand, maybe some old bird out there would care to explain.

..... and it will all start with a rights issue....

 

 

Better still, the latter $15m investments in building works and machinery if done by sub-tenants also Jadi (can).    That’s almost a potential 120,000 sqft worth of sub-tenants!   In my opinion, just the potential investments by sub-tenants itself, for that amount of sub-let able space over 5yrs after TOP, would more than sufficiently cover that.  Some reno, carpets, office equipment, some machinery and a few cappuccino machines kao leow (enough).  Haha.  

So if sub-tenants investments not enough then how?  Simple.  Just do what a scumbag like me would do.  haha.

 

And another additional 29yr lease at NO additional JTC lease/rent?   Am I reading this right?  That makes the lease potentially almost 60 yrs!  What’s the Catch?

Just need to invest another $15m in plant (building works) and machinery over 5yrs after Temporary Occupational Permit. That is potential 8 YEARS down the road!  Long long  time lah.

 

This  development only requires 60% industrial, balance can be office and/or showrooms, etc.   Plus …can sub-let out close to 50%!     

$9.7m Machinery investments? If it was up to me, I would probably recon some of my old sh*t in my other overseas plant, sell to my peng yu (friend) at sky high prices, who will then sell back to me and .... walah!   Kau tim (settled).  Seriously, when it comes to specilised equipment, who's gonna know?  But then again, they not me.  I am a scumbag. 

Well, I guess the consolation is at least there will be job creation in Singapore.    

 

$32 bucks per square foot plot ratio for a 30 yr JTC lease on a relatively centrally located industrial plot in Paya Lebar iPark? So what's the catch?

All they need is to invest  $27.2m to construct an industrial complex of approximately 243,000 sqft over 3yrs. And invest another $9.7m in plant & machinery over 3yrs. 

 

They just announce they got a deal with JTC to purchase a big  plot of industrial land of 97,491 sqft for $7.72m. It has a plot ratio of 2.5, and a resulting gross floor area of 243,727 sqft. This works out to an average price of $31.70 psf plot ratio. $32 bucks? Sure or not? Where the F (fish) they find such a deal? I also want!

think they must have some solid proposal to pull that off.

 

are these guys trying to pull off a " CK Tang" ?

 

Teckwah Industrial Corporation Ltd  announced that there is minimal impact to the operations of Teckwah Value Chain ( Japan ) Co Ltd in Japan , a subsidiary of the company, by the Japan earthquake and tsunami. All the employees and their families in Japan are safe and accounted for.

 

sgx

 

 

Any good news for this counter..thks..

 

first time see Teckwah   price up to $0.37.   hope good news will announce

 

first time see Teckwah volume break more than 10k. hope good news will announce

 

The Ho Bee boss has added 288,000 shares of Teckwah to his holding.Now total  15,288,000 shares. Just announced this evening. .

 

Corporate Action details (e.g. Rights ratio, dividend ratio, tax rate, etc) * Interim dividend of 1 cent per ordinary share (1-tier tax exempt) for the finanical year ending 31 December 2010 Record Date * 06-09-2010 Record Time * 17:00 Date Paid/Payable (if applicable) 20-09-2010

ZebraCrossing      ( Date: 14-Sep-2010 18:05) Posted: This is the one and only counter i am holding now =) For your information, Company traditional record higher revnues and profits in the second half of the financial year. Last year's final dividend was 2cents. If it gives out the same amount again this year, one will be looking at a 3cent (1cent interim + 2cent final) dividend return on a 32cent counter (9.3% returns) A very solid dividend play for me!

 

This is the one and only counter i am holding now =)

For your information,


Company traditional record higher revnues and profits in the second half of the financial year. Last year's final dividend was 2cents. If it gives out the same amount again this year, one will be looking at a 3cent (1cent interim + 2cent final) dividend return on a 32cent counter (9.3% returns)

A very solid dividend play for me!