Poh Tiong Choon Valuation Report
Evaluated on 01-Feb-2007 and I am currently not invested in this company.
About the company:
- 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
- Date of Listing: Apr -1999
- 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.
- 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.
- 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)
- Earning Per Share: $0.0072 (annualized)
- Price/Earnings ratio : 25.30 (annualized)
- Operating Profit: 3.13%
- Return on Equity Ratio: 2.34%
- Current Ratio: 1.52
- Cash & Receivables per share: $0.089
- Debt/Total Equity Ratio: 1.04
- Net Tangible Assets: $0.1792
- Price: $0.20 (02-Feb-07, PM)
- Est Fair Value: $0.2152 (highly subjective)
- Maximum Price I would purchase at: $0.15 (highly subjective)
- Price to Est Fair Value: 92.93%
- Final word: Not very appetizing to me... and just me only. Differing views are very much welcomed...
- Link to 1H06 report on SGX (pdf file): http://tinyurl.com/3bnhn3
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