Category: King Wan

Buy @ $0.28

Big drop from $0.325 after 1H results were released on 29-May. Big impairment of $12Mil for their China assets… Operating Profits lower,  but not unexpected… 2H Div = 1ct, reduced from 1.5ct… Even their KTIS stake is lower in value due to sharp drop from THB 11.60 (Dec-14) to THB 9.35 (Mar-15)… but still worth 12.9ct / share… Take the risk as Yield = 6% (if can maintain Div)…. Likely short term bet… 😀

Sell @ $0.32

The surprise of today… Sudden push up in the afternoon… Looks like the work of professionals, with Buy Q support of >1mil shares + closed at $0.325, using only 1,000 shares. Let's hope the push up continues…

FY15 results are due latest by month end. Am not expecting much from their core M&E biz. Sugar, KTIS & THB had been weak recently and more importantly, their stake in KTIS ended lower in valuations (THB was strong @ +5.3% qoq but KTIS price closed much lower @ -19.4% qoq) for end-Mar Quarter…  But, am still expecting min. 1.5ct div as last year or slightly more, from their selling more KTIS from their big stake… 😀

Buy @ $0.305

Buy back some to replace those I'd sold previously. No, KTIS & Sugar Prices had not recovered to previous levels. I doubt that their M&E core biz will show positive surprise as Property mkt is still under pressure. But, I'm buying ahead of the 2H (Mar) results likely due in May + it's now 1ct lower than my Sell Price. For last year, Div = 1.5ct… Still, at the right price, I may take profit in the short term… 😀

Sell @ $0.315

Selling at a loss but have a profit if I were to include the previous Div = 0.7ct. I checked KTIS & Sugar Price again before deciding to sell. The only reason for holding King Wan is their substantial asset in KTIS shares and KTIS is in the Sugar Industry, thus, the above checks. King Wan core operations in M&E works is not doing that great and is a non-factor in my consideration.

Will most likely pare down further at min. 31.5ct to free up more cash. The re-focus ie buy back will be for the Mar-15 results, estimated to be in end-Apr onwards altho' a buy-back trigger is set at just one bid lower ie 31ct… 😀

Sell @ $0.315

My only profitable batch. Suddenly +1ct today but checked KTIS & Sugar Price to be flat and can't be the reason for the optimism. Recent Quarterly results also not great…. 😀

Buy @ $0.30

Average down… went down with the mkt but not recovering as much… Checked THB rate is strong and KTIS price recovered back to THB11.3… Sugar price is weak tho'…. 😀

Buy @ $0.32

xd on 21-Nov (0.7ct). Let's see if it'll drop more than that..

KTIS remains strong (THB12.2 vs IPO THB10) and THB stays stable… incease my bet… 😀

Buy @ $0.32

1H Results were out on 10-Nov, A summary,

• Interim Div = 0.7ct, increase from 0.5ct last year
• NAV = 34.16ct vs last Q 31.83ct (increase as expected due to KTIS but aro 0.3ct lower than my estimate)
• EPS = 0.21ct, lower than my expected 0.5xct fm Operations and much lower than my estimates which'd included the KTIS increase in fair value ($12.4mil, or 2ct+/share), which they stated in the Comprehensive Income and is not used for EPS computations
• They sold some KTIS shares for a gain = $126,750. My estimate is they sold aro 1.6mil shares (they have 116m+)

So, bad news is no Special Div (despite huge profits from KTIS and their having paid themselves good bonuses in Q1). Further, core biz EPS is much lower…

Good news is KTIS value is driving the increase in NAV and potential profits when sold. KTIS is currently aro 12THB vs 10THB IPO pice.

Buy @ $0.3198

My Buy Q @ $0.315 was only partially done. Buy more from the $0.32 sell Q to avoid the min. $25 comms driving up unit cost… 😀

Buy @ $0.315

So far, only looked at Q1 (Jun) results and traced their KTIS shares issued. On KTIS,

• Apr-14 : 116,318,000 @ 10THB worth S$45.4m, with Net Profit S$24m ; 95% Shares + 5% Cash (~S$2.39m)
• Q1 (Jun-14) : KTIS = 9.55THB @ 0.0385 => S$42.8m  or 12.25ct / share
• Q2 (Sep-14) : KTIS = 11.30THB @ 0.0394 => S$51.79m or 14.48ct / share
• Today : KTIS = 11.1THB @ 0.03925 => S$50.68m or 14.51ct / share

Comparing Q1 & Q2, we're going to see an extra "pofit" of S$9m or 2.23ct / share from their KTIS stake.Compared to their EPS (FY14 = 1.93ct ; FY13 = 2.02ct) coming from their core biz, it's substantial. On top of that, we should see NAV = 31.83ct (Jun-14) + 2.23ct for Sep-14.

In Q1, the mgmt had also paid themselves a good bonus, likely as a reward for the KTIS profits… I wonder if they have any intention to pay shareholders a good special dividend in 1H or latest, 2H??

As for the core biz of M&E, I'll have to look at more Quarters….. Plus, they also have a lot of rojak biz in Portable Toilet rental, one ship under charter, Foreign Worker dormitory JV,… which seems to show a lack of proper focus in biz direction… 😀