Pan United Corp (68 cts)

Pan United Corp. (PUC) is one of the few stocks that have been performing rather well over the past 6 quarters. Its quarterly revenue has been on a steady up trend rising from S$101M in 1Q11 to reach a high of S$182M in 2Q12. Nett profit also rose from S$6.1M in 1Q11 to hit a high of S$13.2M in 2Q12. EPS was 5.5 cts for FY11 and appears poise to hit at least 8 cts this year. Its management has also been actively buying back its own shares over the past few months. PUC’s stock price has risen from around 50 cts in early May this year to the current level of around 70 cts – not really cheap under the current economic and stock market environment. However, it is one of the few non S-chips that are currently doing well and may be worth keeping an eye on. Those interested should do their own homework.
Briefly, Pan-United Corporation Ltd started as a small ship chandler in 1958. It ventured into regional bulk shipping in the 1970s, and the marine industry in the 1980s. In the 1990s, PUC diversified the businesses into basic building materials and subsequently the Changshu Xinghua Port in Changshu City, Jiangsu Province, China. It was listed on the Singapore Stock Exchange in 1993.
BUSINESS ACTIVITIES
A - Basic Building Materials Division – Product & Services

1. Cement
2. Granite aggregates and related products
3. Ready-mixed concrete
4. Refined petroleum products

B - Shipping Division - Services

1. Bulk / Coastal Shipping / Affreightment
2. Ship Management and Ship Agency
3. Trading

C - Port & Logistic Division

1. International port and regional hub for steel, logs, pulp and paper cargoes
2. Break bulk cargoes
3. Containers
4. Large project cargoes
5. Warehousing and bonded warehousing
6. Value-added processing
7. Stevedoring
8. Transshipment
9. Third party logistics

FINANCIAL DATA
Period ---Revenue---Nett Profit---EPS
FY2010—S$391M---S$20M---3.6 cts   Dividend – 3 cts
1Q11---S$101M---S$6.1M---1.1 cts
2Q11---S$129M---S48.7M---1.6 cts
3Q11---S4136.8M---S$8.7M---1.6 cts
4Q11---S$145M---S$6.6M---1.2 cts
FY2011---S$512M---S$39.3M---5.5 cts   Dividend – 3.5 cts
1Q12---S$162M---S$9.5M---1.7 cts
2Q12---S$182M---S$13.2M---2.4 cts   EPS for 1H12 – 4.1 cts
3Q12---(akan datang! can expect continued good performance)
OUTLOOK
Company expects to maintain the sales volume of its building materials and to further diversify their cargo base to increase berth utilization; as well as to improve vessel utilization in its shipping division. In August 2012, one of its subsidiary, PUCC, secured a S$41.5M contract to supply various ready-mixed concrete to China Railway (S’pore Branch) & Shanghai Tunnel Engg Co for their Tuas West Extension project. This contract is expected to contribute to revenue and profit next financial year.
 
 

Yes, I heard good things about it.

Was 68 cts in Oct 2012. Is 90 cents today. Up 32% in 1 year. Observer2, you are still holding to this ?

Has this small cap stock in my portfolio too.

Visible earnings profile..

abb wrote: Was 68 cts in Oct 2012. Is 90 cents today. Up 32% in 1 year. Observer2, you are still holding to this ?

Abb – I have divested as I found its PE to have reached the high end and potential capital gain to be derived from this stock seemed to be limited. I went into CIVMEC at 64.5 cts for better upside.