Friday, February 2, 2007

Poh Tiong Choon Valuation Report

Poh Tiong Choon Valuation Report

Evaluated on 01-Feb-2007 and I am currently not invested in this company.

About the company:

  1. Core Business: The principal activities of the Company consist of the provision of services relating to land transportation, warehousing,stevedoring, container services, hiring out of equipment, leasing and general contracting
  2. Date of Listing: Apr -1999
  3. What I like about this company: The company's management are also substantial shareholders (i.e. their fortunes also tied to company performance). Management is very experienced in its industry, since 1950s. Transportation industry - I like its predictability... market up or down still need transportation. The only risk here is that I do not know how much does the transportation component contribute to PTC revenue and profit.
  4. What I do not like about this company: Seems to be lacking of independent / external directors. Only 24% of the assets is in Cash and A/R. Majority of the rest (63.53%) is classified as Plant, Property & Equipment. Revenue increased by 14%, but profit decreased by 53% because of higher diesel and interests costs and setting up of newly formed subsidaries.
  5. Competitive advantage (if any): Logistical know-how in its industry? I am really not sure if this make sense. Let me know your comments...

Valuation Statistics (base on 1H06 financial report)

  1. Earning Per Share: $0.0072 (annualized)
  2. Price/Earnings ratio : 25.30 (annualized)
  3. Operating Profit: 3.13%
  4. Return on Equity Ratio: 2.34%
  5. Current Ratio: 1.52
  6. Cash & Receivables per share: $0.089
  7. Debt/Total Equity Ratio: 1.04
  8. Net Tangible Assets: $0.1792

Conclusion

  1. Price: $0.20 (02-Feb-07, PM)
  2. Est Fair Value: $0.2152 (highly subjective)
  3. Maximum Price I would purchase at: $0.15 (highly subjective)
  4. Price to Est Fair Value: 92.93%
  5. Final word: Not very appetizing to me... and just me only. Differing views are very much welcomed...

Information sources

  1. Link to 1H06 report on SGX (pdf file): http://tinyurl.com/3bnhn3

Disclaimer: Completeness, accuracy and opinions based on information and comments mentioned via this website cannot be guaranteed. Investors should always conduct their own research before making investment decisions.

2 comments:

ilanit said...
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