Background: Poh Tiong Choon (PTC) is a mainboardlisted
logistics company set up in 1950 and
headquartered in Singapore. Upon listing in 1999, the
group’s business grew from transportation to include
bulk cargo handling, warehousing, LPG trading,
terminal management and chemical logistics.
Recent development: Since October 2009, different
substantial shareholders have been consistently
buying back shares from the open market, with the
most recent transactions done just last week at $0.45
per share.
Key ratios…
12‐mth trailing PER: 10.0x
Price‐to‐book: 1.62x
Dividend per share: S2.75cts (FY10)
Net debt position: $16.8m
Share price S$0.435
Issued shares (m) 215.8
Market cap (S$m) 93.9
Free float (%) 45.4
Recent fundraising activities Nil
Financial YE 31 Dec
Major shareholders Poh Choon Ann (chairman) – 23.8%; Poh Sin Choon (founder) – 12.9%; Poh Choon Her – 7.6%; Adrian Ho – 10%;
YTD change +8.8%
52‐wk price range S$0.365‐0.485
Our view
Potential privatisation? Together, the substantial shareholders, ie, the Poh family and Mr Adrian Ho, hold about 54% of the company. All the five board members and key executives (excluding independent directors) are from the Poh family.
Profitability on a downtrend. Stagnating revenue and cost pressures in the form of oil and manpower appear to have dampened profitability across all its business divisions. Profitability at its biggest division, transportation, contracted by 55.6% to $5.9m in FY10. However, free cash flow is still strong at a 1H11 run‐rate of $9m a year, which should keep the group going.
Key assets may be interesting. The group owns several assets which are probably undervalued on its balance sheet. These include a factory building. We estimate the total market value of these assets to be $78.2m against a group net debt position of $16.8m.
No comments:
Post a Comment