F.A.-wise, King Wan's core business of M&E generates a lot of cashflow and doesn't require heavy capex. This is the kind of business which captures my attention.
The “Property, plant and equipment” in the latest FY results shows only S$5.2 million (FY12: S$5.9 m).
Net operating cashflow for FY13 was S$7.9 m (FY12: $2.5 m).
A dividend of 1.5 cents has been the norm. With the KTIS disposal, a special dividend of 1.5 cents every year for the next 10 years is possible, as highlighted by OSK-DMG.
TQ!
I doubt the IPO launch will be so soon. If the SEC has up to Aug 17 to approve, and KTIS can choose the timing of IPO when the investor sentiment is positive.... then we may not see any action until after 3Q.
As I have said before....this is a small cap gem. Hands on management with good core business and a solid investing records. The latest investment in the bulk carrier was a classic opportunistic move that will add to its operating cashflow (usd1.04 million pa for next 3 years), and not forgetting the capital gain that may come with it when the shipping cycle recovers. I first invested in at about 20cts, sold out at 28cts. Now bought back (added more) at avg 29 cts. With current developments, KW will be in my portfolio for a long time. Well done to its management.
Agree that the ship investment is going to prove to be a very astute move by King Wan.
Disagree that the stock price is a sexy price. It's now around NTA. I think it's more than fairly priced. It's the dividend that will support the stock price. The management should deliver on its implicit promise of a special dividend of 1.5 cents a year for the next many years (for a total of at least 3 cents dividend a year). Otherwise, its credibility will be damaged beyond repair!
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