Latest stock holdings :-
Additions since previous updates :-
TEE International
Invested into it for 4 lots under Cash stock holdings. On its Qtr 1 results, revenue -38.5%, profit +93.2%. Soft revenue due to lower revenue recognized from on-going projects in 1Q2015. Higher profit driven by increased contribution from associates of TEE Land +$1.5mil; disposal of a subsidiary, Interlift Sales Pte Ltd (Other operating income +$0.8mil, Admin exp -$0.8mil); net foreign currency exchange adjustment loss in 1Q2014 +$1.3mil.
HUPSteel Limited
Invested into it for 25 lots under Cash stock holdings. On its Qtr 4 results, revenue -17%, profit +16%. Lower revenue due to a decline in sale of steel products to the marine sector arising from sluggish demand. Even though Qtr 4 revenue was soft versus year ago but it was a slight improvement on sequential quarter basis due to improved sales of structural steel products. With an intentional emphasis on spot sales rather than project sales for its structural steel products, it achieved better margin for 4Q14 with gross profit margin improved to 18.5% from 16.8%. Staff cost increased due to higher provision for incentives as a result of better profit margin. Other operating expenses decreased due mainly to structures at 6 Kim Chuan Drive being written off to make way for redevelopment in the previous year. This category of expenses also decreased 15% to $6.8mil in FY14 from $8.0mil for FY13 in tandem with the lower turnover recorded. It borrowed less from banks as it continued to scale down its purchases and repaid borrowings earlier so as to minimize interest costs; borrowings reduced to $0.1mil from $3.7mil.
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Additions since previous updates :-
TEE International
Invested into it for 4 lots under Cash stock holdings. On its Qtr 1 results, revenue -38.5%, profit +93.2%. Soft revenue due to lower revenue recognized from on-going projects in 1Q2015. Higher profit driven by increased contribution from associates of TEE Land +$1.5mil; disposal of a subsidiary, Interlift Sales Pte Ltd (Other operating income +$0.8mil, Admin exp -$0.8mil); net foreign currency exchange adjustment loss in 1Q2014 +$1.3mil.
HUPSteel Limited
Invested into it for 25 lots under Cash stock holdings. On its Qtr 4 results, revenue -17%, profit +16%. Lower revenue due to a decline in sale of steel products to the marine sector arising from sluggish demand. Even though Qtr 4 revenue was soft versus year ago but it was a slight improvement on sequential quarter basis due to improved sales of structural steel products. With an intentional emphasis on spot sales rather than project sales for its structural steel products, it achieved better margin for 4Q14 with gross profit margin improved to 18.5% from 16.8%. Staff cost increased due to higher provision for incentives as a result of better profit margin. Other operating expenses decreased due mainly to structures at 6 Kim Chuan Drive being written off to make way for redevelopment in the previous year. This category of expenses also decreased 15% to $6.8mil in FY14 from $8.0mil for FY13 in tandem with the lower turnover recorded. It borrowed less from banks as it continued to scale down its purchases and repaid borrowings earlier so as to minimize interest costs; borrowings reduced to $0.1mil from $3.7mil.
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Another follower of hupsteel.
ReplyDeleteImo, this hup guy is a winner if vested for long enough.
Get paid while waiting for value to unlock is not a bad deal at all. Downside limited by hard asset n cash backing.
l like Hupsteel strong balance sheet.
DeleteCash rich!
Borrowings is almost zero.
Soft steel products demand from marine, and O&G sector are likely to stay the way they are in the next 1-2 years. To stay ahead Hupsteel is focusing on inventory management so it is kept at optimal level (target to have it on demand-basis) and replenished at lower costs; which eventually will sustain or even improved its gross profit margin.
Property development at its Kim Chuan site is to ensure its various resources are not kept idle; a pass time activity.