Delong   

"DE LONG"(Get Dragon)

Delong vs CosmoSteel

Gross Margin 16.2% vs 9.5%
EBIT Margin 13.1% vs (22.6%)
Current Ratio 1.2x vs 4.9x
Quick Ratio 0.7x vs 1.5x
P/Tangible Book Value 0.3x vs 0.4x
P/E 1.6x vs (Loss-Making)

In 1HFY2017, CosmoSteel reported a loss of S$4.7mil.  Laura Ng, their CFO, has left and CosmoSteel has entered into watchlist due to MTP entry criteria.  Their outlook is largely affected by the Energy and Marine segments.

For Delong, their first quarter results showed an impressive  305.2% increase for profit attributable to equity holders of the company on the back of 43.2% increase in sales. For Aoyu Steel, it is to be sold for RMB 400m when the book value is RMB 94.9m. This means the company is set to gain RMB 305.1m or SGD S$61.85mil before  paying for severance pay and other expenses. It also obtained SGX' s waiver approval for this deal to go through. 

CosmoSteel' s inventory turnover days is very long compared to Delong. For any rational investors, I believe -- in terms of valuations -- Delong offers a better deal. The issue I see with Delong is its liquidity. 

-- vested -- 

CosmoSteel 1H FY2017:  http://infopub.sgx.com/FileOpen/CosmoSteel%202QFY2017%20Announcement.ashx?App=Announcement& FileID=452834
Delong 1QFY2017:  http://infopub.sgx.com/FileOpen/1Q2017results.ashx?App=Announcement& FileID=452043
Delong SGX waiver:  http://infopub.sgx.com/FileOpen/Waiver.ashx?App=Announcement& FileID=456140

humayun      ( Date: 02-Jun-2017 17:49) Posted: CosmoSteel 5 year dividend performance Delong  5 year dividend performance 2017 --> 0 2016 --> 0 2015 --> 0 2014 --> 0 2013 --> 0 Delong pattern of reporting FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 Net Profit Net Loss Net Profit Net Loss Net Profit Net Loss Net Profit

 

Although Delong does not give out dividend for the past years. At least they had used the funds to reduce the company' s debts.

humayun      ( Date: 02-Jun-2017 17:54) Posted: CosmoSteel 5 year dividend performance Year Yield Amount Ex Date Pay Date Particulars 2017 3.68% SGD 0.005 26-01-17 14-02-17 SGD 0.005 ONE-TIER TAX 2016 3.68% SGD 0.005 25-02-16 11-03-16 SGD 0.005 ONE-TIER TAX 2015 3.68% SGD 0.005 25-02-15 13-03-15 SGD 0.005 ONE-TIER TAX 2014 7.35% SGD 0.01 26-02-14 14-03-14 SGD 0.01 ONE-TIER TAX 2013 9.19% SGD 0.0125 26-02-13 14-03-13 SGD 0.0125 ONE-TIER TAX

 

CosmoSteel 5 year dividend performance

Year	Yield	Amount	Ex Date	Pay Date	Particulars
2017	3.68%	SGD 0.005	26-01-17	14-02-17	SGD 0.005 ONE-TIER TAX
2016	3.68%	SGD 0.005	25-02-16	11-03-16	SGD 0.005 ONE-TIER TAX
2015	3.68%	SGD 0.005	25-02-15	13-03-15	SGD 0.005 ONE-TIER TAX
2014	7.35%	SGD 0.01	26-02-14	14-03-14	SGD 0.01 ONE-TIER TAX
2013	9.19%	SGD 0.0125	26-02-13	14-03-13	SGD 0.0125 ONE-TIER TAX

 

 

CosmoSteel 5 year dividend performance

Delong  5 year dividend performance
2017 --> 0
2016 --> 0
2015 --> 0
2014 --> 0
2013 --> 0
Delong pattern of reporting

FY2016	FY2015	FY2014	FY2013	FY2012	FY2011	FY2010
Net Profit	Net Loss	Net Profit	Net Loss	Net Profit	Net Loss	Net Profit

 

 

How would you value Cosmo Steel and Delong? What are their valuations? 

ruready      ( Date: 30-May-2017 08:57) Posted: Delong steel up so much so cosmosteel will be the next steel daring

 

Delong steel up so much so cosmosteel will be the next steel daring

 

SGX has been issuing queries to Delong and the management has been able to reply.

There might be further potential collaboration as disclosed by company over here:
1.  http://infopub.sgx.com/FileOpen/reply.ashx?App=Announcement& FileID=455681
2.  http://infopub.sgx.com/FileOpen/Potential%20Collaboration.ashx?App=Announcement& FileID=455448

Is it a good news? I hope so!

Looking at the depth, there is around 100k shares queing to sell at $1.55 and $1.6. Wonder if this is placed there to suppress the share price? 

 

Hi, the company did not state the returns so far. After last night' s response, I believe it added more clarity to Delong' s recent corporate developments. The share price reacted today. 

The company is called  红 领 集 团 (Redcollar) and it is founded by  Zhang DaiLi. 

" The Consideration for the Target Shares of RMB60.0 million (equivalent to approximately S$12.2 million based on the Exchange Rate) was arrived at on a willing buyer willing seller basis, after taking into consideration the price-to-earnings ratio of approximately 92 and 49 times of the profit after tax of the Target based on its audited financial statements for the previous financial years ended 31 December 2014 and 2015 respectively, and the business prospects of the Target."  

The Group may subsequently exit as a shareholder from the Target upon the completion of an initial public offering or trade sale by the Target which is expected to take place within 2 years from the date hereof."  

I believe to be an investor, or invited to be part of the capital raising round, is not easy. Delong' s chairman might have some good business ties to be included. The company is also used as a positive case to study family succession. I believe Redcollar is a fast-grower. 

Mr. Zhang has one son and one daughter. He passed the baton to his daughter Zhang Yunlan. Ms. Zhang gave her remarks on the development of Red Collar, &ldquo Today&rsquo s Red Collar has largely been crafted by my father. In the third year after I took over the company, I went to Las Vegas for an exhibition. When I returned, I said to my father, &lsquo I&rsquo m very grateful to you, because you didn&rsquo t just leave me a big fortune and an insipid company&rsquo . Instead, what I&rsquo ve inherited from him is the core competitiveness and a platform. It&rsquo s a platform for me to bring into full play my strengths. My father has shown me the right direction. As long as I keep going in this direction, even sometimes I may walk slowly, our business won&rsquo t be consumed wrongly and perish.&rdquo The dream of Mr. Zhang and his daughter is to develop Red Collar into a creator, designer and promoter of the Internet industry and to facilitate the development of Internet-based industrial civilization.

Hence, conclusion, Redcollar is a proper company that is disrupting the traditional business model of clothing business. 

More on Redcollar group:
https://www.forbes.com/sites/janeho/2016/08/15/chinas-suit-maker-redcollar-blazes-trail-for-mass-made-to-measure/#2e2da9265470
Business Leaders Visit Red Collar Clothing&rsquo s &lsquo Magic&rsquo Factory to Learn About Customization - http://m.yicaiglobal.com/news/50047166.html
Who Dares Win - http://usa.chinadaily.com.cn/us/2016-06/18/content_25753499.htm
A Carpenter Knowing Nothing about Computer Won&rsquo t Be A Good Tailor -  http://www.pandotree.org/en/researchView_id_276.html

humayun      ( Date: 23-May-2017 23:00) Posted: Is   it   clear what was the return from diversification to textile business?  height00      ( Date: 23-May-2017 21:14) Posted: I think one bro here may have bought into this at high price. The way he posted not vreally meaningful to Delong. I remember delong mention diversified to textile not long ago.

 

Is   it   clear what was the return from diversification to textile business? 

height00      ( Date: 23-May-2017 21:14) Posted: I think one bro here may have bought into this at high price. The way he posted not vreally meaningful to Delong. I remember delong mention diversified to textile not long ago.

 

This is very good article
http://www.ecns.cn/business/2017/05-23/258559.shtml
I am afraid we will see profit decline for the second quarter," Wang said
 

 

I think one bro here may have bought into this at high price. The way he posted not vreally meaningful to Delong. I remember delong mention diversified to textile not long ago.

 

Delong is a credible business and there is just too much fearmongering by you. 

http://www.ecns.cn/business/2017/05-23/258559.shtml

humayun      ( Date: 23-May-2017 20:13) Posted: Price brought up at this level is most likely by  syndicate. It will come down with or without our participation in the forum.

 

At the end whose is the losing I don' t think any willing to take the risk 

 

Price brought up at this level is most likely by  syndicate. It will come down with or without our participation in the forum.

 

I do agreed no calculations needed but now the problem is that what the point of depressing the price? No benefit to shares holder and no one in the company   buying the stock in supporting that the company is good. Just let the syndicate destroying the stock.

 

For this counter specially S-Chip you do not need much calculation. Like " Ayou" , they will tell you, nothing much left after expense out!

Kelvesy      ( Date: 23-May-2017 19:30) Posted: May I know how you did your calculations?  When they sell their steel plant, they are going to book a profit on disposal.  humayun      ( Date: 23-May-2017 18:10) Posted: Within a month its final resting place would be S$0.30. After second quater along with discontinuation of production from  Ayou, you can see it around S$0.10

 

May I know how you did your calculations? 

When they sell their steel plant, they are going to book a profit on disposal. 

humayun      ( Date: 23-May-2017 18:10) Posted: Within a month its final resting place would be S$0.30. After second quater along with discontinuation of production from  Ayou, you can see it around S$0.10

 

In this case SGX is doing excellent job:
http://infopub.sgx.com/FileOpen/CoReply.ashx?App=Announcement& FileID=454925
Point to highlight
Question 2: 
We refer to Note 1 on Page 6 on the &ldquo Group&rsquo s investment in EC World Reit&rdquo . When was this acquisition made and did the Company make an announcement on this?
Company&rsquo s response :
The investment was made in July 2016. There was no announcement made in relation to the transaction as all of the relative figures computed based on the bases set out in Rule 1006 amounted to less than 3%. 

 

Within a month its final resting place would be S$0.30. After second quater along with discontinuation of production from  Ayou, you can see it around S$0.10

 

If company in good shape why price heading down?
Most cases is insider bad news that not out yet that cause the price to decline.
By judging this stock in low volume maybe just a manipulation by a few parties.
But the price depreciation is huge look scary