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CP Tan last made his first pot of gold when he sold his business to KKR. Round 2 and can retire!
Alignment ( Date: 09-Aug-2025 10:40) Posted:
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So now someone big has spotted shiok as well and thinking about privatise. Perhaps another Ang Moh like for Grand Venture?
Alignment ( Date: 02-Sep-2024 17:18) Posted:
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HOLDING ANNOUNCEMENT
The Board of Directors (?Board?) of SPINDEX INDUSTRIES LIMITED (the ?Company?) wishes to
update its shareholders that the Company has been approached by a third party on a possible
transaction in relation to the shares in the Company.
The discussions are ongoing and there is no certainty or assurance that such discussions will
progress beyond the current stage or that any transaction will proceed as a result of such discussions.
The Company will, in compliance with applicable rules (including the Corporate Disclosure Policy of
the Listing Manual of the Singapore Exchange Securities Trading Limited), make further
announcements in the event of any material developmen
https://links.sgx.com/1.0.0/corporate-announcements/MX8M8ECFT87DFHQN/854108_Spindex_Holding%20Announcement.pdf
Spindex Industries reports slight earnings increase to $6.7 mil in 1HFY2025
Spindex Industries has reported earnings of $6.7 million for the 1HFY2025 ended Dec 31, 2024, up marginally by 6.5% y-o-y from the $6.3 million reported in the same period a year before.
The group is an integrated solution provider of precision-machined components and assemblies for use in machinery and automotive systems, imaging and printing equipment, consumer-lifestyle and healthcare products.
For the period of reporting, earnings per share came in at 5.86 cents, up from the 5.5 cents in the same period a year ago.
The group&rsquo s gross profit saw a 8.9% y-o-y increase to $18.8 million, and revenue grew by 4.7% y-o-y to $92.3 million in 1HFY2025.
Spindex says that overall demand remained subdued, but some demand was brought forward in anticipation of higher tariffs to come. Orders were uneven across the different customer and product segments, with some recording modest growth and others some decline.
The MA business segment recorded growth of 3.9% with higher shipments to existing and new customers. Back in FY2024, customers in the IP business segment experienced a degree of overstocking and as inventory was reduced during FY2024, orders rebounded in 1HFY2025 for a revenue growth of 20.6% off a relatively low base.
The CP business segment comprises a larger number of items with mixed performance, with overall revenue remaining stable.
Gross profit margin for the group improved from a modest 19.6% to 20.4% in the 1HFY2025. The group says that other operating income benefited from a subsidy received from the local government in Nantong, China in relation to the land purchased for the Nantong plant.
Meanwhile, higher distribution and selling expenses were incurred due to higher freight charges partly related to the higher revenue. Weakness in the US Dollar resulted in a higher foreign exchange loss, contributing to the increase in administrative expenses.
The group&rsquo s net cash inflows generated came in at $7.2 million, and after the purchase of property, plant and equipment and dividend payment, the net cash and cash equivalents totalled to $1.6 million.
The group&rsquo s cash and cash equivalents rose marginally to about $62.0 million. With total loans
and borrowings remaining low at $5.1 million as at Dec 31, 2024, the group says that it is in a strong financial position to capitalise on investment opportunities to strengthen its long term competitive position.
Spindex says that the overall business environment is likely to remain challenging and uncertain in the short and medium term, both due to a softening market and also with new geopolitical tensions and tariffs.
Inflationary conditions could linger for much longer, and the correspondingly elevated interest rates could further hamper demand. With demand likely to remain soft, pressure on prices will continue.
&ldquo In response, the group will continue to enhance its operating efficiency by improving its work processes and maintaining an optimal network of manufacturing plants in Asia to support any new as well as relocation of orders to Asean,&rdquo it notes.
Pretty decent results. Cycle has troughed and coming back up the other side now.
Spindex posts FY2024 net profit of $15.6 million, up 43.8% y-o-y
Spindex Industries has reported net profit of $15.6 million for FY2024 ended June 30, up 43.8% y-o-y.
In financial statements released on Aug 20, Spindex posted full-year revenue of $180.3 million, 1.7% lower y-o-y, while profit before tax grew 38.3% y-o-y to $20.4 million.
Spindex Group is an integrated solution provider of precision-machined components and assemblies for use in machinery and automotive systems, imaging and printing equipment, consumer-lifestyle and healthcare products
Demand was uneven across the group&rsquo s business sectors during the financial year. Both automotive and machine tools under the MA business sector benefited from a general restocking in FY2024 and the sector grew 11.6% y-o-y to $90.7 million.
Although revenue from the IP business sector declined 16.4% y-o-y to $26.6 million for FY2024, the business sector posted a marginal revenue growth in the second half year.
Following weak demand for components in FY2023, the resumption of production of imaging and printing equipment in FY2024 contributed to some demand in 2HFY2024.
The CP business sector comprising domestic appliances, consumer electronics, health and leisure equipment and data storage, continued to be affected by the general business slowdown and weaker demand. In FY2024, revenue for the CP business sector declined 10.4% y-o-y to $63.0 million.
Distribution and selling expenses fell 2.3% y-o-y in line with the lower group revenue. Administrative expenses rose 6.0% for the year and the increase was partly due to a lower foreign exchange gain, offset by the absence of any retrenchment expenses incurred in FY2024.
The repayment of short-term loans in FY2023 lowered financial expenses and the continuing improvement in the operations of the joint venture in Vietnam resulted in a modest share of profit, says the company.
With higher profit before tax and lower depreciation for property, plant and equipment, operational cash flow before changes in working capital improved to $32.8 million. However, an increase in trade receivables, pre-payments and trade payables reduced the cash flow from operations to $29.4 million.
Although a higher amount of cash was used to purchase property, plant and equipment, net cash used in financing activities declined substantially due to lower dividend payment and marginal repayment of bank loans. This contributed substantially to the net increase in cash and cash equivalents of $14.7 million for the year.
A reduction in financing activities led to the increase in cash and cash equivalents of $60.9 million from $46.4 million in FY2023. Total loans and borrowings of $4.7 million as at June 30 remained low, says the company, and Spindex &ldquo continues to be in a strong financial position to selectively invest in expanding the business&rdquo .
Earnings per share rose to 13.49 cents in FY2024, up from 9.38 cents this time last year. Spindex has proposed a first and final dividend of 2.7 cents per share, up from 0.5 cents per share this time last year.
The proposed dividends, if approved at the 37th annual general meeting to be held on Oct 25, will be paid on Nov 18.
Yes, a share more for long term investors rather than traders.
So damn illiquid....buy and get stuck.
Muddy muddy.
With this set of results looks like they have turned the corner. 2024 should be better than 2023. In retrospect they were overly cautious with reducing the 2023 dividend.
Koh Boon Hwee used to like this.
Spindex net profit up 4.7% y-o-y to $6.3 mil in 1HFY2024
Spindex Industries 564 0.62% has reported a net profit of $6.3 million for its 1HFY2024 ended Dec 31, 2023, a 4.7% y-o-y improvement, on increased gross profit and a lower effective tax rate.
Amid market conditions which remained challenging, the company&rsquo s revenue contracted by 6.3% y-o-y to $88.2 million in 1HFY2024 compared to the previous corresponding period. The company&rsquo s business segments recorded mixed performances as overall demand continued to remain soft.
Cost of sales fell by a similar margin of 9.3% to $70.9 million in 1HFY2024, as distribution, selling and administrative expenses were carefully managed in line with the lower revenue.
Spindex says it was able to lift its gross profit margin from 16.9% in 1HFY2023 to 19.6% in 1HFY2024 through prudent and careful management of input costs. Gross profit also increased 8.3% y-o-y to $17.3 million.
During the half-year period ended December, the company&rsquo s repayment of bank borrowings resulted in lower financial expenses. Continuous improvement in the performance of the plastic injection operations in Vietnam enabled a modest positive contribution from this joint venture.
In addition, the reversal of deferred tax liability from an overseas subsidiary enabled the company to lower its effective tax rate to 19%.
For the 1HFY2024, Spindex&rsquo s net cash flow from operating activities stood at $8.4 million, while cash and cash equivalents came in at $50.7 million. Meanwhile, loans and borrowings lowered to $3.0 million as at Dec 31, 2023.
In its outlook statement, Spindex expects the cautious and uncertain business environment to continue for the rest of the current financial year. High interest rates and continuing inflationary pressures will add to these challenges, further dampening demand from consumers and businesses in the near term.
The company says it will continue to be conservative in managing its cash position, but will invest in equipment, work processes and its human capital to achieve developments in its core competencies to reposition for growth.
Dividend 3.5 cents ex date 7th Nov
Spindex records FY2021 earnings of $21.3 mil, up 74.5%
Precision parts maker Spindex Industries has reported earnings of $21.3 million for the full year ended June 30, up 74.5%.Revenue in the same period was up 37%y-o-y to $204.9 million, due to higher demand for office equipment, domestic appliances and hobby-related equipment.
" Actual as well as potential Covid-19 related disruptions to the global supply chain have continued to result in some forward stocking of components," the company notes.
For 2HFY2021, despite higher raw material, labour and transportation costs, the company was able to maintain its gross margin at 22.5%.
The company is making use of this period of stronger earnings to step up its capital expenditure " to renew and optimize its network of manufacturing facilities across Asia to better cater to business fluctuations."
Spindex plans to pay a higher final dividend of 4.5 cents per share, up from 2.8 cents paid for FY2020.
With an earnings per share of 18.44 cents, the company' s Aug 24 closing price of $1.20 translates into a PE ratio of 6.5 times.
As at June 30 2021, the company' s net asset value was 128.1 cents.
Been almost 3 years since I last posted some observations about the stock. With the recent rerating and privatisations of manufacturers in Singapore (Hi-P, Sunningdale) among other big names such as GL, can this be a potential candidate for 2021?
not sure if this stock is still on anyone' s investment radar, thought this undervalued gem is worth some discussion.
1. more insider purchase - with the tech rally in 2017, this counter din' t move much and in fact retraced to almost the last GO price of 85c. interestingly, the vehicle Hong Wei that was used to privatise the company last Mar recently did a married deal to acquire an additional 2.94mil shares at 90c/share to up its stake to about 75%.
2. free float is actually very small with owners having about 75% stake total no. of shareholders based on recent AR2017 is only 267. Chairman, CP Tan had a history of divesting MMI to KKR in 2007 for more than S$600m and last year could potentially be a move for him to increase his stake in the company at a very attractive valuation for subsequent trade-sale to a private equity.
3. on the financials, valuations remain very depressed for Spindex -
EV/EBITDA is only about 2.9 based on FY2017 financial results
PE: 9.8x FY17 or TTM (no forward forecasts given that no analysts cover it presently)
PB: 1.05x
Dividend yield: 3.3% consistent yearly dividend payouts since 2009
Balance sheet: Net cash position of > S$28m (approximately 30% of market cap) with zero debt
Cash flow generation: positive operating cash flow yearly for the last 10 years
in comparison, Innovalues which was Spindex' s closest peer before it was privatised by Northstar was trading at:
EV/EBITDA of 8.9
PE of 14x
PB 3+x
4. while the company guided cautiously in their latest 1HFY2018 financial results, its quite similar to what most of the manufacturers guided as well. interestingly, there was a significant increase in CAPEX spending of S$13.0m for 1HFY2018. comparatively over the last 10 years, only FY2015 recorded CAPEX of $14.5m so potentially FY2018 would be a year of record spending in CAPEX - signalling that the group continues to invest for growth.
welcome any constructive inputs or feedback to stress test this investment thesis.
1. more insider purchase - with the tech rally in 2017, this counter din' t move much and in fact retraced to almost the last GO price of 85c. interestingly, the vehicle Hong Wei that was used to privatise the company last Mar recently did a married deal to acquire an additional 2.94mil shares at 90c/share to up its stake to about 75%.
2. free float is actually very small with owners having about 75% stake total no. of shareholders based on recent AR2017 is only 267. Chairman, CP Tan had a history of divesting MMI to KKR in 2007 for more than S$600m and last year could potentially be a move for him to increase his stake in the company at a very attractive valuation for subsequent trade-sale to a private equity.
3. on the financials, valuations remain very depressed for Spindex -
EV/EBITDA is only about 2.9 based on FY2017 financial results
PE: 9.8x FY17 or TTM (no forward forecasts given that no analysts cover it presently)
PB: 1.05x
Dividend yield: 3.3% consistent yearly dividend payouts since 2009
Balance sheet: Net cash position of > S$28m (approximately 30% of market cap) with zero debt
Cash flow generation: positive operating cash flow yearly for the last 10 years
in comparison, Innovalues which was Spindex' s closest peer before it was privatised by Northstar was trading at:
EV/EBITDA of 8.9
PE of 14x
PB 3+x
4. while the company guided cautiously in their latest 1HFY2018 financial results, its quite similar to what most of the manufacturers guided as well. interestingly, there was a significant increase in CAPEX spending of S$13.0m for 1HFY2018. comparatively over the last 10 years, only FY2015 recorded CAPEX of $14.5m so potentially FY2018 would be a year of record spending in CAPEX - signalling that the group continues to invest for growth.
welcome any constructive inputs or feedback to stress test this investment thesis.
fischer last offer price 80 cents ! now offer $3.02 ! spindex offer 85 cents ! what is the next offer price ? im looking at $1.25 only !
guess the stock is searching new highs now as investors are assessing what is the fair value of the company.
jeremyow ( Date: 11-May-2017 09:21) Posted:
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Yup. Agree. It may drop by a lot or rise by a lot because of low liquidity currently facing the trading of this counter.
bluekelah ( Date: 11-May-2017 08:49) Posted:
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Not optimistic for this q results , USA Audi sales been down a lot, they will be hit for sure. Likely less than 80c soon. This will drop like a rock as not much liquidity.
selling seems to have exhausted and now long holders are just holding on to their shares till a fair value has been ascribed by the market.
closed at almost 52wk high (highest was 94c when annc was made about potential competing bids) of 93.5c yesterday on volume. now that the stock is going to remain listed, it should be valued independently of the GO that was previously made at 85c. in fact, 85c should be deemed as a price floor. look at recent examples of Fischer Tech and Ellipsiz where the GO failed and companies remain listed - all flew after that.
in fact, Fischer Tech has now been approached for potential trade sale. it is presently trading at about $2.50/share compared to the then GO price of 80c. same goes for Ellipsiz where GO price was 38c and it is almost 60c now.
from a valuation perspective, Spindex (EV/EBITDA of 3.4, ex-cash PE of 7 and 1.1x PB) is trading way below its closest peer, Innovalues (EV/EBITDA of 8.9, 14x PE, 3.4x PB) which was recently privatised. also, don' t forget out of the $100m market cap, it has a net cash position of about $31m. quite a high margin of safety and investors are paid to wait given that they typically pay out dividends in the range of 25-30% historically over the years.