Value Investment on Singapore Stock Exchange - Valuation Report of HTL International
Evaluated on 28-Jan-2007 and I am currently not invested in this company.
About the company:
- Core Business: Manufacturer of leather sofas and leather upholstery hides since 1976, with facilities in China, Malaysia and Singapore.
- Date of Listing: 1993
- What I like about this company: Its Revenue, Profit and EPS has been increasing steadily over the last 5 years. Its customers are mainly from overseas, with Europe and North America accounting for more than 70% of sales. The management are also the substantial shareholders. The management focus on the development of its 'skills and capabilities' (know-how) of its business.
- What I do not like about this company: Inventories form about 54.8% of its current assets and I am not sure if it is the norm in the industry.
- Competitive advantage (if any): Global footprint, serving it as a natural barrier to entry of its business?
Valuation Statistics (base on 3Q06 financial report)
- Earning Per Share: $0.129 (annualized)
- Price/Earnings ratio : 7.83 (annualized)
- Operating Profit: 10.17%
- Return on Equity Ratio: 18.00
- Current Ratio: 2.62
- Cash & Receivables per share: $0.27
- Debt/Total Equity Ratio: 0.684
- Net Tangible Assets: $0.537
- Price: $1.01 (26-Jan-07)
- Intrinsic Value: $1.18 (highly subjective)
- Maximum Price I would purchase at: $0.95 (highly subjective)
- Current Price to Max price I would buy at: 106%
- Final word: This seems to be a great business to own. I would like keep it in my watchlist. At 106% of Price to IV, it would be slightly expensive for me to consider any purchase at the moment.
- HTL company website at http://www.htlinternational.com/
- Share investment magazine, issue 296, 01/01/07 - 12/01/07
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