The price of sugar has plunged about 28% in the past 52 weeks. KTIS is coming to market at its low, rather than at the peak with all the hype. Viewed in this way, KTIS has a lot of upside potential as sugar prices can rise. Is there anyone here who is knowledgeable about the sugar supply + demand dynamics? Why is sugar down in the first place? :huh:
The latest full year results show that the property, plant & equipment of King Wan Corp stood at just SGD5.3 million, down slightly from SGD5.9 million. The company continues to be a low-capex business, which is what I like and which explains the consistently positive operating cashflow - which equates to why it has been able to pay nice dividends annually.
Business has been around for more than 30 years. Coupled with astute and progressive management team, this small cap is a gem. Icing on the cake will be the listing of Kaset Thai. If this goes through, company will cash rich, able to pay higher dividend and to invest in other businesses. Its track record in business investments has been stellar.