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41-60 of 192
Just got news from SGX that 60m+ new shares will be listed tomorrow? Will this lead to a massive sell down with so much additional supply through the placement?
I have no idea..there's been talks of consolidating debt and there's its joint venture. But that was so 'yesterday'. Anybody knows if there were any big buy ins?
WHY?
srntyb ( Date: 21-Jun-2010 10:06) Posted:
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OMG! It moved today...its alive!
You are right...
Penny stocks is where the big money is...
It can make you jump overnight... 
alexchia01 ( Date: 20-May-2010 21:15) Posted:
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I don't about you guys, but I don't like to play stocks below 0.20.
Any stocks below 0.20 are usually below the radar and can wait a long time before anyone notice them.
Beside 0.01 up or down can quickly hit my cut loss point.
Can end up cutting more losses than making profits.
Thus, downtrends can also be discernble even in the penny stocks...
I bought this one also at 0.070, 100 lots and I cut loss at 0.045 many months back after waited for quite some time. I doubt this counter will move up in short to mid term.Long term wise, I also have no faith in this company any more unless there are some strategic changes.
Out of my radar screen.
Hulumas ( Date: 20-May-2010 19:15) Posted:
|
That's very sad... 
My cost price Sgd. 0.07, 3300 lots, all I cut loss from Sgd. 0.045 to today <Sgd. 0.035. Just too bad. I switch all the fund to other penny stocks!
iPunter ( Date: 20-May-2010 03:26) Posted:
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This one is already trading at 3c...
iPunter ( Date: 25-Nov-2009 04:20) Posted:
|
The company seems to be positioning itself aggressively for a turn-around as it disposes off all non-core assets and secures strategic investors to clean up its current debt. Interesting developmentts recently including the news on its debt restructuring. Though the company is technically insolvent, its financers may still find the company's long-term fundamental market prospects to be compelling enough to extend credit. Current price point of 3 cents may be a rallying point.
In further demonstration that Advance SCT is cleaning up its balance sheet, it has announced further today that it is issuing 60,907,336 new shares for a portion of outstanding debt. This further reduces the net tangible liability per Share of the Company from (14.15) cents to (12.15) cents. I believe there could be further securitisation of debt owing creditors as the balance sheet continues to be cleaned up.
This is definitely a speculative play but if things start turning, we could be looking at a multi-bagger! Trading at 3 cents now ...
Like most pennies, this one is still downtrending ...
and may go for the gap-filling thingy @ .35...
this will be 1 of the future billion $ company...
www.dbsvickers.com
Refer to important disclosures at the end of this report
Advance Sct Limited
Higher earnings growth to offset equity dilution
�� Story: Advance SCT has completed the placement of 50m
ordinary shares at an issue price of S$1.01 per share, which should
be listed on SGX today.
�� Point: Proceeds of S$50.5m would be used for (1) acquiring
additional capacity for smelter and recycling (2) funding working
capital requirements. In addition, management has guided for
better margins per tonne at the smelter in China, by virtue of
securing the licence for importing scrap copper in China. As such,
we are conservatively raising our FY08 and FY09 earnings
estimates by 10% each based on lower interest burden, higher
margins at the Chinese smelter and potential buy-out of minority
stake in Malaysian smelter.
�� Relevance: Maintain BUY at one-year target price of S$1.40
based on 14x fully diluted FY08 EPS. We see a very healthy upside
of over 42% at the current stock price. Potential acquisition
announcements would be the catalyst for the stock price.
High institutional interest is evident in the size and price of the equity
issue. The issue price of S$1.01 is based on 8% discount to the average
share price of S$1.10 on 13 Nov 07, the date when the placement
agreement was signed. About 80% of the new shares are placed to
institutional investors while 20% are placed to high net worth
individuals. Upon completion of the placement exercise, ASCT?s share
capital would increase by 18.9% to 314.2m shares.
M&A is on the horizon. Out of the placement proceeds of S$50.5m, about
S$20m would be used to fund the working capital requirements while the
remaining would be invested in growth opportunities. We see a strong
possibility of two M&A activities. (1) ASCT acquiring the remaining 20%
stake in the Malaysian smelter, which kickstarted in Mar 07 and is
generating good profits already. (2) ASCT could also buy more recycling
capacity in Europe or US to secure cheaper scrap copper for the smelter.
This move would further enhance net margins for smelter, as scrap
copper in Europe is cheaper than Asia, due to lower demand in Europe as
a result of environmental concerns.
Higher margins at Chinese smelter. Management has guided that net
margin per tonne for the smelter plant in China should be better than
the previous assessment of USD 130 per tonne due to lower cost of scrap
copper. The Chinese government has stopped issuing new imports
licences for scrap copper and ASCT is among the last few companies to
secure one. Since, ASCT would be able to import cheap scrap copper from
its own recycling business in different parts of Asia, it implies higher
margins for ASCT?s smelter in China, which uses scrap copper as raw
material. We have assumed net margins of USD 200 per tonne for FY08
and FY09, which is fairly conservative compared to management?s
expectations.
Buy S$0.975 STI : 3,372.64
Price Target : 12-Month S$ 1.40 (Prev S$ 1.45)
Reason for Report : Company update
Potential Catalyst: Acquisition annoucement, A good set of
2H07 numbers, capacity expansion announcements
ANALYST
Sachin Mittal +65 6398 7950
sachin@dbsvickers.com
SHARE PRICE CHART
FORECASTS AND VALUATION
FY Dec (S$ m) 2006A 2007F 2008F 2009F
Turnover 267.4 666.1 936.4 1,211.4
EBITDA 11.5 33.4 62.1 83.8
Pre-tax Profit 7.2 25.0 46.9 67.4
Net Profit 5.8 19.4 39.3 56.9
Net Pft (Pre Ex.) 5.8 19.4 39.3 56.9
EPS (S cts) 2.7 7.3 12.5 18.1
EPS Pre Ex. (S cts) 2.7 7.3 12.5 18.1
EPS Gth Pre Ex (%) N/A 168 71 45
Diluted EPS (S cts) 4.0 6.4 10.0 14.4
Net DPS (S cts) 0.7 0.6 0.5 0.5
BV Per Share (S cts) 29.4 49.2 53.4 71.0
PE (X) 35.6 13.3 7.8 5.4
PE Pre Ex. (X) 35.6 13.3 7.8 5.4
P/Cash Flow (X) 27.8 11.3 7.0 4.9
EV/EBITDA (X) 21.7 9.1 5.8 4.3
Net Div Yield (%) 0.8 0.6 0.5 0.5
P/Book Value (X) 3.3 2.0 1.8 1.4
Net Debt/Equity (X) 0.7 0.3 0.3 0.2
ROAE (%) 18.6 20.2 26.4 29.1
0 .0 0
0 .2 0
0 .4 0
0 .6 0
0 .8 0
1 .0 0
1 .2 0
N o v - 0 6 F e b - 0 7 A p r - 0 7 J u l - 0 7 S e p - 0 7 N o v - 0 7
S $
A d v a n c e S c t L im i t e d 1 0 0 -D a y M A
AT A GLANCE
Issued Capital (m shrs) 314.2
Mkt. Cap (S$m/US$m) 308 / 212
Major Shareholders
Yeok Kian Tea (%) 25.2
American International Group (%) 8.5
Lim Andy (%) 7.1
Free Float (%) 59.2
Avg. Daily Vol.(?000) 3,764
Earnings Rev (%): 2008: 10.7 2009: 10.3
Consensus EPS (S cts): 2008: 13.1 2009: 17.7
Variance vs Cons (%): 2008: (4.6) 2009: 2.3
Sector : Technology
Bloomberg/Reuters Code: ASCT SP/ASCT.SI
Principal Business: The Group provides a complete
copper material solution from global sourcing and
processing to eventual global sales and distribution of
copper materials and related products.
DBS Group Research . Equity 28 Nov 2007
Singapore
Company Focus
Company Focus Advance Sct Limited
2 of 4
Absolute Net Profit Contribution
In S$ millions 06A 07F 08F 09F
Copper Smelting ? Malaysia 0.0 11.8 18.0 20.9
Copper Smelting - China JV 0.0 0.0 7.2 8.6
Copper Refining 0.0 0.0 6.2 18.7
Testing and Finishing Services 5.4 4.1 4.5 4.8
Recycling and Supply chain management 6.2 5.8 4.8 5.6
11.6 21.7 40.8 58.6
Minority Interests 2.4 1.4 1.7
Net profit 19.4 39.3 56.9
Assumptions on capacity utilisation and profit margins
07F 08F 09F
USD-SGD Exchange rate 1.47 1.44 1.44
LME Price 7500 7700 7700
Malaysia Smelter capacity utilisation (metric tonne) 24000 50000 58000
Malaysia smelter margins per tonne (USD) 335 250 250
China smelter capacity utilisation (metric tonne) 0 25000 40000
China smelter margins per tonne (USD) 0 200 200
Refining capacity utilisation (metric tonne) 0 14400 43200
Refining margins per tonne (USD) 300 300 300
Recycling capacity utilisation (metric tonne) 110000 120000 140000
Recycling margins per tonne (USD) 40 40 40
Source : Company, DBS Vickers
Company Focus Advance Sct Limited
3 of 4
Income Statement (S$ m) Balance Sheet (S$ m)
FY Dec 2006A 2007F 2008F 2009F FY Dec 2006A 2007F 2008F 2009F
Turnover 267.4 666.1 936.4 1,211.4 Net Fixed Assets 33.7 54.5 56.8 57.7
Cost of Goods Sold (249.5) (608.4) (828.6) (1,056.2) Invts in Assocs & JVs 1.6 1.6 1.6 1.6
Gross Profit 17.9 57.7 107.8 155.3 Other LT Assets 2.6 14.4 14.4 14.4
Other Opg (Exp)/Inc (8.2) (27.6) (50.4) (77.5) Cash & ST Invts 16.7 89.0 85.4 80.4
EBIT 9.7 30.1 57.4 77.8 Other Current Assets 81.7 141.2 195.6 265.9
Other Non Opg (Exp)/Inc 0.0 0.0 0.0 0.0 Total Assets 136.2 300.7 353.7 420.0
Associates & JV Inc 0.1 0.0 0.0 0.0
Net Interest (Exp)/Inc (2.6) (5.1) (10.5) (10.4) ST Debt 47.7 115.3 115.3 115.3
Exceptional Gain/(Loss) 0.0 0.0 0.0 0.0 Other Current Liab 11.0 33.5 47.3 56.5
Pre-tax Profit 7.2 25.0 46.9 67.4 LT Debt 13.4 17.4 17.4 17.4
Tax (1.2) (3.2) (6.1) (8.8) Other LT Liabilities 1.6 1.6 1.6 1.6
Minority Interest (0.2) (2.4) (1.4) (1.7) Shareholder?s Equity 61.9 129.9 167.7 223.1
Preference Dividend 0.0 0.0 0.0 0.0 Minority Interests 0.6 2.9 4.4 6.1
Net Profit 5.8 19.4 39.3 56.9 Total Cap. & Liab. 136.2 300.7 353.7 419.9
Net profit before Except. 5.8 19.4 39.3 56.9
EBITDA 11.5 33.4 62.1 83.8 Non-Cash Wkg. Cap 70.6 107.7 148.3 209.4
Sales Gth (%) N/A 149.1 40.6 29.4 Net Cash/(Debt) (44.4) (43.6) (47.3) (52.2)
EBITDA Gth (%) N/A 189.7 85.7 35.0
EBIT Gth (%) N/A 210.4 90.7 35.5
Effective Tax Rate (%) 16.9 13.0 13.0 13.0
Cash Flow Statement (S$ m) Rates & Ratios
FY Dec 2006A 2007F 2008F 2009F FY Dec 2006A 2007F 2008F 2009F
Pre-Tax Profit 7.2 25.0 46.9 67.4 Gross Margin (%) 6.7 8.7 11.5 12.8
Dep. & Amort. 1.7 3.3 4.7 6.1 EBITDA Margin (%) 4.3 5.0 6.6 6.9
Tax Paid (1.3) (2.6) (3.2) (6.1) EBIT Margin (%) 3.6 4.5 6.1 6.4
Assoc. & JV Inc/(loss) (0.1) 0.0 0.0 0.0 Net Profit Margin (%) 2.2 2.9 4.2 4.7
Chg in Wkg. Capital (5.6) (37.7) (43.4) (63.7) ROAE (%) 18.6 20.2 26.4 29.1
Other Operating CF (0.1) 0.0 0.0 0.0 ROA (%) 8.5 8.9 12.0 14.7
Net Operating CF 1.9 (12.1) 4.9 3.6 ROCE (%) 15.1 18.5 25.2 27.0
Capital Exp.(net) (7.8) (25.0) (7.0) (7.0) Div Payout Ratio (%) 26.7 8.0 3.9 2.7
Other Invts.(net) (0.7) 0.0 0.0 0.0 Interest Cover (x) 3.8 5.9 5.5 7.5
Invts in Assoc. & JV 0.0 0.0 0.0 0.0 Debtors Turn (avg days) 47.6 39.4 34.7 36.0
Div from Assoc & JV 0.0 0.0 0.0 0.0 Creditors Turn (avg days) 5.9 11.1 14.9 14.4
Other Investing CF 0.0 0.0 0.0 0.0 Inventory Turn (avg days) 8.7 23.8 35.0 38.5
Net Investing CF (8.5) (25.0) (7.0) (7.0) Current Ratio (x) 1.7 1.5 1.7 2.0
Div Paid (1.5) (1.5) (1.5) (1.5) Quick Ratio (x) 1.5 1.1 1.2 1.3
Chg in Gross Debt (18.8) 61.2 0.0 0.0 Net Debt/Equity (X) 0.7 0.3 0.3 0.2
Capital Issues 24.7 50.4 0.0 0.0 Capex to Debt (%) 12.8 18.8 5.3 5.3
Other Financing CF 0.0 0.0 0.0 0.0 N.Cash/(Debt)PS (S cts) (21.1) (16.5) (15.0) (16.6)
Net Financing CF 4.3 110.0 (1.5) (1.5) Opg CFPS (S cts) 3.5 9.7 15.4 21.4
Net Cashflow (2.3) 73.0 (3.6) (5.0)
Free CFPS (S cts) (2.8) (14.0) (0.7) (1.1)
PE Chart (x)
7.0
9.0
11.0
13.0
15.0
17.0
19.0
21.0
23.0
25.0
Jan-06 Jun-06 Nov-06 Apr-07 Sep-07
Source: Company, DBS Vickers
Company Focus Advance Sct Limited
4 of 4
DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows:
STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)
BUY (>15% total return over the next 12 months for small caps, >10% for large caps)
HOLD (0-15% total return over the next 12 months for small caps, 0-10% for large caps)
FULLY VALUED (negative total return i.e. > -10% over the next 12 months)
SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)
Share price appreciation + dividends
DBS Vickers Research is available on the following electronic platforms: DBS Vickers (www.dbsvresearch.com); Thomson
(www.thomson.com/financial); Factset (www.factset.com); Reuters (www.rbr.reuters.com); Capital IQ (www.capitaliq.com)
and Bloomberg (DBSR GO). For access, please contact your DBSV salesperson.
As of 28 Nov 2007, the analyst and his / her immediate family do not hold positions in the securities
recommended in this report.
DBS Vickers Securities (Singapore) Pte Ltd and its subsidiaries do not have a proprietary position in the
securities recommended in this report as of 26 Nov 2007.
ANALYST CERTIFICATION
The research analyst primarily responsible for the content of this research report, in part or in whole certifies
that the views about the companies and their securities expressed in this report accurately reflect his/her
personal views. The analyst also certifies that no part of his/her compensation was, is, or will be, directly, or
indirectly, related to specific recommendations or views expressed in this report.
This document is published by DBS Vickers Research (Singapore) Pte Ltd ("DBSVR"), a direct wholly-owned
subsidiary of DBS Vickers Securities (Singapore) Pte Ltd ("DBSVS") and an indirect wholly-owned subsidiary of
DBS Vickers Securities Holdings Pte Ltd ("DBSVH"). The research is based on information obtained from
sources believed to be reliable, but we do not make any representation or warranty as to its accuracy,
completeness or correctness. Opinions expressed are subject to change without notice. This document is
prepared for general circulation. Any recommendation contained in this document does not have regard to
the specific investment objectives, financial situation and the particular needs of any specific addressee. This
document is for the information of addressees only and is not to be taken in substitution for the exercise of
judgement by addressees, who should obtain separate legal or financial advice. DBSVR accepts no liability
whatsoever for any direct or consequential loss arising from any use of this document or further
communication given in relation to this document. This document is not to be construed as an offer or a
solicitation of an offer to buy or sell any securities. DBS Vickers Securities Holdings Pte Ltd is a whollyowned
subsidiary of DBS Bank Ltd. DBS Bank Ltd along with its affiliates and/or persons associated with any
of them may from time to time have interests in the securities mentioned in this document. DBSVR, DBSVS,
DBS Bank Ltd and their associates, their directors, and/or employees may have positions in, and may effect
transactions in securities mentioned herein and may also perform or seek to perform broking, investment
banking and other banking services for these companies. DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates
of DBS Vickers Securities (USA) Inc ("DBSVUSA"), a U.S.-registered broker-dealer, may beneficially own a
total of 1% or more of any class of common equity securities of the subject company mentioned in this
document. DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA may, within the past 12 months,
have received compensation and/or within the next 3 months seek to obtain compensation for investment
banking services from the subject company. DBSVUSA does not have its own investment banking or research
department, nor has it participated in any investment banking transaction as a manager or co-manager in
the past twelve months. Any US persons wishing to obtain further information, including any clarification on
disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should
contact DBSVUSA exclusively. DBS Vickers Securities (UK) Ltd is an authorised person in the meaning of the
Financial Services and Markets Act and is regulated by The Financial Services Authority. Research distributed
in the UK is intended only for institutional clients.
DBS Vickers Research (Singapore) Pte Ltd ? 8 Cross Street, #02-01 PWC Building, Singapore 048424
Tel. 65-6533 9688, Fax: 65-6226 8048
Company Regn. No. 198600295W
Refer to important disclosures at the end of this report
Advance Sct Limited
Higher earnings growth to offset equity dilution
�� Story: Advance SCT has completed the placement of 50m
ordinary shares at an issue price of S$1.01 per share, which should
be listed on SGX today.
�� Point: Proceeds of S$50.5m would be used for (1) acquiring
additional capacity for smelter and recycling (2) funding working
capital requirements. In addition, management has guided for
better margins per tonne at the smelter in China, by virtue of
securing the licence for importing scrap copper in China. As such,
we are conservatively raising our FY08 and FY09 earnings
estimates by 10% each based on lower interest burden, higher
margins at the Chinese smelter and potential buy-out of minority
stake in Malaysian smelter.
�� Relevance: Maintain BUY at one-year target price of S$1.40
based on 14x fully diluted FY08 EPS. We see a very healthy upside
of over 42% at the current stock price. Potential acquisition
announcements would be the catalyst for the stock price.
High institutional interest is evident in the size and price of the equity
issue. The issue price of S$1.01 is based on 8% discount to the average
share price of S$1.10 on 13 Nov 07, the date when the placement
agreement was signed. About 80% of the new shares are placed to
institutional investors while 20% are placed to high net worth
individuals. Upon completion of the placement exercise, ASCT?s share
capital would increase by 18.9% to 314.2m shares.
M&A is on the horizon. Out of the placement proceeds of S$50.5m, about
S$20m would be used to fund the working capital requirements while the
remaining would be invested in growth opportunities. We see a strong
possibility of two M&A activities. (1) ASCT acquiring the remaining 20%
stake in the Malaysian smelter, which kickstarted in Mar 07 and is
generating good profits already. (2) ASCT could also buy more recycling
capacity in Europe or US to secure cheaper scrap copper for the smelter.
This move would further enhance net margins for smelter, as scrap
copper in Europe is cheaper than Asia, due to lower demand in Europe as
a result of environmental concerns.
Higher margins at Chinese smelter. Management has guided that net
margin per tonne for the smelter plant in China should be better than
the previous assessment of USD 130 per tonne due to lower cost of scrap
copper. The Chinese government has stopped issuing new imports
licences for scrap copper and ASCT is among the last few companies to
secure one. Since, ASCT would be able to import cheap scrap copper from
its own recycling business in different parts of Asia, it implies higher
margins for ASCT?s smelter in China, which uses scrap copper as raw
material. We have assumed net margins of USD 200 per tonne for FY08
and FY09, which is fairly conservative compared to management?s
expectations.
Buy S$0.975 STI : 3,372.64
Price Target : 12-Month S$ 1.40 (Prev S$ 1.45)
Reason for Report : Company update
Potential Catalyst: Acquisition annoucement, A good set of
2H07 numbers, capacity expansion announcements
ANALYST
Sachin Mittal +65 6398 7950
sachin@dbsvickers.com
SHARE PRICE CHART
FORECASTS AND VALUATION
FY Dec (S$ m) 2006A 2007F 2008F 2009F
Turnover 267.4 666.1 936.4 1,211.4
EBITDA 11.5 33.4 62.1 83.8
Pre-tax Profit 7.2 25.0 46.9 67.4
Net Profit 5.8 19.4 39.3 56.9
Net Pft (Pre Ex.) 5.8 19.4 39.3 56.9
EPS (S cts) 2.7 7.3 12.5 18.1
EPS Pre Ex. (S cts) 2.7 7.3 12.5 18.1
EPS Gth Pre Ex (%) N/A 168 71 45
Diluted EPS (S cts) 4.0 6.4 10.0 14.4
Net DPS (S cts) 0.7 0.6 0.5 0.5
BV Per Share (S cts) 29.4 49.2 53.4 71.0
PE (X) 35.6 13.3 7.8 5.4
PE Pre Ex. (X) 35.6 13.3 7.8 5.4
P/Cash Flow (X) 27.8 11.3 7.0 4.9
EV/EBITDA (X) 21.7 9.1 5.8 4.3
Net Div Yield (%) 0.8 0.6 0.5 0.5
P/Book Value (X) 3.3 2.0 1.8 1.4
Net Debt/Equity (X) 0.7 0.3 0.3 0.2
ROAE (%) 18.6 20.2 26.4 29.1
0 .0 0
0 .2 0
0 .4 0
0 .6 0
0 .8 0
1 .0 0
1 .2 0
N o v - 0 6 F e b - 0 7 A p r - 0 7 J u l - 0 7 S e p - 0 7 N o v - 0 7
S $
A d v a n c e S c t L im i t e d 1 0 0 -D a y M A
AT A GLANCE
Issued Capital (m shrs) 314.2
Mkt. Cap (S$m/US$m) 308 / 212
Major Shareholders
Yeok Kian Tea (%) 25.2
American International Group (%) 8.5
Lim Andy (%) 7.1
Free Float (%) 59.2
Avg. Daily Vol.(?000) 3,764
Earnings Rev (%): 2008: 10.7 2009: 10.3
Consensus EPS (S cts): 2008: 13.1 2009: 17.7
Variance vs Cons (%): 2008: (4.6) 2009: 2.3
Sector : Technology
Bloomberg/Reuters Code: ASCT SP/ASCT.SI
Principal Business: The Group provides a complete
copper material solution from global sourcing and
processing to eventual global sales and distribution of
copper materials and related products.
DBS Group Research . Equity 28 Nov 2007
Singapore
Company Focus
Company Focus Advance Sct Limited
2 of 4
Absolute Net Profit Contribution
In S$ millions 06A 07F 08F 09F
Copper Smelting ? Malaysia 0.0 11.8 18.0 20.9
Copper Smelting - China JV 0.0 0.0 7.2 8.6
Copper Refining 0.0 0.0 6.2 18.7
Testing and Finishing Services 5.4 4.1 4.5 4.8
Recycling and Supply chain management 6.2 5.8 4.8 5.6
11.6 21.7 40.8 58.6
Minority Interests 2.4 1.4 1.7
Net profit 19.4 39.3 56.9
Assumptions on capacity utilisation and profit margins
07F 08F 09F
USD-SGD Exchange rate 1.47 1.44 1.44
LME Price 7500 7700 7700
Malaysia Smelter capacity utilisation (metric tonne) 24000 50000 58000
Malaysia smelter margins per tonne (USD) 335 250 250
China smelter capacity utilisation (metric tonne) 0 25000 40000
China smelter margins per tonne (USD) 0 200 200
Refining capacity utilisation (metric tonne) 0 14400 43200
Refining margins per tonne (USD) 300 300 300
Recycling capacity utilisation (metric tonne) 110000 120000 140000
Recycling margins per tonne (USD) 40 40 40
Source : Company, DBS Vickers
Company Focus Advance Sct Limited
3 of 4
Income Statement (S$ m) Balance Sheet (S$ m)
FY Dec 2006A 2007F 2008F 2009F FY Dec 2006A 2007F 2008F 2009F
Turnover 267.4 666.1 936.4 1,211.4 Net Fixed Assets 33.7 54.5 56.8 57.7
Cost of Goods Sold (249.5) (608.4) (828.6) (1,056.2) Invts in Assocs & JVs 1.6 1.6 1.6 1.6
Gross Profit 17.9 57.7 107.8 155.3 Other LT Assets 2.6 14.4 14.4 14.4
Other Opg (Exp)/Inc (8.2) (27.6) (50.4) (77.5) Cash & ST Invts 16.7 89.0 85.4 80.4
EBIT 9.7 30.1 57.4 77.8 Other Current Assets 81.7 141.2 195.6 265.9
Other Non Opg (Exp)/Inc 0.0 0.0 0.0 0.0 Total Assets 136.2 300.7 353.7 420.0
Associates & JV Inc 0.1 0.0 0.0 0.0
Net Interest (Exp)/Inc (2.6) (5.1) (10.5) (10.4) ST Debt 47.7 115.3 115.3 115.3
Exceptional Gain/(Loss) 0.0 0.0 0.0 0.0 Other Current Liab 11.0 33.5 47.3 56.5
Pre-tax Profit 7.2 25.0 46.9 67.4 LT Debt 13.4 17.4 17.4 17.4
Tax (1.2) (3.2) (6.1) (8.8) Other LT Liabilities 1.6 1.6 1.6 1.6
Minority Interest (0.2) (2.4) (1.4) (1.7) Shareholder?s Equity 61.9 129.9 167.7 223.1
Preference Dividend 0.0 0.0 0.0 0.0 Minority Interests 0.6 2.9 4.4 6.1
Net Profit 5.8 19.4 39.3 56.9 Total Cap. & Liab. 136.2 300.7 353.7 419.9
Net profit before Except. 5.8 19.4 39.3 56.9
EBITDA 11.5 33.4 62.1 83.8 Non-Cash Wkg. Cap 70.6 107.7 148.3 209.4
Sales Gth (%) N/A 149.1 40.6 29.4 Net Cash/(Debt) (44.4) (43.6) (47.3) (52.2)
EBITDA Gth (%) N/A 189.7 85.7 35.0
EBIT Gth (%) N/A 210.4 90.7 35.5
Effective Tax Rate (%) 16.9 13.0 13.0 13.0
Cash Flow Statement (S$ m) Rates & Ratios
FY Dec 2006A 2007F 2008F 2009F FY Dec 2006A 2007F 2008F 2009F
Pre-Tax Profit 7.2 25.0 46.9 67.4 Gross Margin (%) 6.7 8.7 11.5 12.8
Dep. & Amort. 1.7 3.3 4.7 6.1 EBITDA Margin (%) 4.3 5.0 6.6 6.9
Tax Paid (1.3) (2.6) (3.2) (6.1) EBIT Margin (%) 3.6 4.5 6.1 6.4
Assoc. & JV Inc/(loss) (0.1) 0.0 0.0 0.0 Net Profit Margin (%) 2.2 2.9 4.2 4.7
Chg in Wkg. Capital (5.6) (37.7) (43.4) (63.7) ROAE (%) 18.6 20.2 26.4 29.1
Other Operating CF (0.1) 0.0 0.0 0.0 ROA (%) 8.5 8.9 12.0 14.7
Net Operating CF 1.9 (12.1) 4.9 3.6 ROCE (%) 15.1 18.5 25.2 27.0
Capital Exp.(net) (7.8) (25.0) (7.0) (7.0) Div Payout Ratio (%) 26.7 8.0 3.9 2.7
Other Invts.(net) (0.7) 0.0 0.0 0.0 Interest Cover (x) 3.8 5.9 5.5 7.5
Invts in Assoc. & JV 0.0 0.0 0.0 0.0 Debtors Turn (avg days) 47.6 39.4 34.7 36.0
Div from Assoc & JV 0.0 0.0 0.0 0.0 Creditors Turn (avg days) 5.9 11.1 14.9 14.4
Other Investing CF 0.0 0.0 0.0 0.0 Inventory Turn (avg days) 8.7 23.8 35.0 38.5
Net Investing CF (8.5) (25.0) (7.0) (7.0) Current Ratio (x) 1.7 1.5 1.7 2.0
Div Paid (1.5) (1.5) (1.5) (1.5) Quick Ratio (x) 1.5 1.1 1.2 1.3
Chg in Gross Debt (18.8) 61.2 0.0 0.0 Net Debt/Equity (X) 0.7 0.3 0.3 0.2
Capital Issues 24.7 50.4 0.0 0.0 Capex to Debt (%) 12.8 18.8 5.3 5.3
Other Financing CF 0.0 0.0 0.0 0.0 N.Cash/(Debt)PS (S cts) (21.1) (16.5) (15.0) (16.6)
Net Financing CF 4.3 110.0 (1.5) (1.5) Opg CFPS (S cts) 3.5 9.7 15.4 21.4
Net Cashflow (2.3) 73.0 (3.6) (5.0)
Free CFPS (S cts) (2.8) (14.0) (0.7) (1.1)
PE Chart (x)
7.0
9.0
11.0
13.0
15.0
17.0
19.0
21.0
23.0
25.0
Jan-06 Jun-06 Nov-06 Apr-07 Sep-07
Source: Company, DBS Vickers
Company Focus Advance Sct Limited
4 of 4
DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows:
STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)
BUY (>15% total return over the next 12 months for small caps, >10% for large caps)
HOLD (0-15% total return over the next 12 months for small caps, 0-10% for large caps)
FULLY VALUED (negative total return i.e. > -10% over the next 12 months)
SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)
Share price appreciation + dividends
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recommended in this report.
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securities recommended in this report as of 26 Nov 2007.
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copper, silver and gold are rising. matter of fact another +50% or more
Tinatio.. dun worry too much.. wat comes down must eventually goes up.. they will b commissioning their plant in the first quarter next year.. just a matter of month(s).
Not vested.
new high today coming
sad to see this stock drop to the level now and regretted not selling at $1.20....wanner when it will climp up again
Chile is the biggest copper producer in the world. An earthquake had halt operations at some of the world's biggest copper mines due to lost in power supply. Take a look at this http://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=39739&sn=Detail
Look like AdvSCT price will go up together with the copper price. Good luck.