Stock

Buyer Date  of purchase No. of shares Price (S$) Shareholding

TECKWAH 

Airjet Auto-Care Feb 10 186,000 Not avail. 12,780,000  (5.47%)


Airjet Auto burst onto the scene in January when it became a substantial shareholder of Teckwah Industrial, with a 5.19% shareholding.

Since then, it has continued to accumulate Teckwah shares, with the latest announcement from Teckwah yesterday (Feb 11) that Airjet had bought another 186,000 shares at an undisclosed price the day before.

Image
Chua Thian Poh

Airjet is a wholly-owned subsidiary of Ho Bee Holdings, which in turn is 69% owned by property tycoon Chua Thian Poh, and 17.5% by his wife, Madam Ng Noi Hinoy.

Mr Chua is chairman and CEO of a listed property group, Ho Bee Investment, which has a market cap of S$1.3 billion (now you know why he is a tycoon).

Teckwah is, well, a low-profile company with no analyst covering it.

It had a sterling first-half in 2009, and will soon report its full-year results.

Teckwah reported a $5.1 m net profit in the first half of 2009, or 2.2 cents a share. If annualised, the EPS comes up to 4.4 cents, translating into a PE of 6.7.

However, going by historical trend, the revenue split for second half is 60% of the full year's, which suggests that the EPS could be higher than 4.4 cents.

Value investors have noted that it had $40 million of cash on hand as of June 30 last year, which is a massive amount compared to its market capitalisation of $69 million (based on yesterday’s closing stock price of 29.5 cents).

It is run by a chairman-cum-MD, Thomas Chua, whose father founded the company in 1968.




Stock

Buyer Date  of purchase No. of shares Price (S$) Shareholding

OSIM

Ron Sim Feb4 300,000 0.573   243,757,978  (36.78 %)
Feb4 320,000 0.563  
Feb 2 1,000,000   0.573  
Jan 28 3,380,000 0.588  


Ron Sim, the founder and CEO of Osim, has been on a buying spree of his company stock, and now holds 36.78% direct stake and another 161.3 million shares, or a 24.34 % stake, in deemed interest.

OSIM

2009
(‘000)
2008 (‘000)

Q1

3,186 (13,201)
Q2 5,011 (6,011)

Q3

7,012 (6,988)
Q4 8,125 (73,236)

Total

23,334 (73,236)
Earnings per share 3.68 c (18.35 c)

PE @ 59 c

16


On Jan 27, Osim announced a $23.3 million in net profit for 2009, with a sequential rise in quarterly earnings (see table on the right).

However, at earnings per share of 3.68 cents, the stock is trading at 16X.

You are not the only one who thinks that such a valuation is not a bargain.






 

Stock

Buyer Date  of purchase No. of shares Price (S$) Shareholding

HTL

FMR LLC Oct 2 (announced Feb 11) 328,000 41,594,500 (10.03 %)



Mainboard-listed HTL International is one of the world’s leading leather tanners and sofa manufacturers. It counts FMR as a substantial shareholder.

For Q3 last year, it announced a net profit after tax of S$8.1 million (vs S$175,000 in Q3 2008) amidst uncertain global business conditions, volatile forex markets, and rising leather prices and freight rates.

Group turnover declined 12.4% to S$148.9 million against S$170.0 million in Q3 2008. This was caused principally by a sharp fall in sofa sales to North America resulting from a decline in consumer discretionary household expenditure as a result of the US financial crisis.


Recent story: TECKWAH INDUSTRIAL attracts tycoon Chua Thian Poh as shareholder

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