Analysis on Tat Seng Packaging Ltd

Tat Seng Listed on SG Mainboard on 07 Sept 2001

Financial Data

Yr                  Earning/Share                  Revenue              Net Profit % Margin
2013                  7.53c                          215.601 mil              7.7%
2012                  4.92c                          179.857 mil              2.9%
2011                  2.83c                          166.811 mil              2.56%
2010                  3.96c                          153.284 mil              4.24%
2009                  4.74c                          113.361 mil              6.95%


Other Data (as at 31 Dec 2013)

Cash Bal: 23.125 mil
Debt:

• Current: 37.458 mil
• L.T      : 5.994 mil

Shares Issued : 157,200,000
Treasury Shares : NIL
NAV: $0.5101
Gross Div Yield: 4.8%


Opinion

Being in a competitive industry, Tat Seng has managed to hold its ground against its competitor. With increasing gross revenue and net income, this counter will be good for long term holding, provided it can control its cost.

A need to take note is its current debt. Hopefully, this company do not need to raise additional capital to cover the debt.

Conclusion

Overall, the price of the stock is badly undervalued @ 26c. This company is good to accumulate for the long term.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Strategy for 2014 Post Budget Announcement

What a day for our finance minister to announce the budget for 2014. There are a few point which has caught my eyes to formulate my strategy for the year. Below are the few points:

• Increase in Sin tax. http://sg.finance.yahoo.com/news/singapore-tax-sin-instead-wealthy-112408619.html
• No standoff from property cooling measures http://sg.finance.yahoo.com/news/singapore-says-too-early-relax-102434934.html
• Support for the construction industry http://sg.finance.yahoo.com/news/budget-govt-further-support-developers-085543209--sector.html
• Support for SME to upgrade http://business.asiaone.com/news/budget-2014-s500m-scheme-boost-smes-ict-adoption-rate, http://business.asiaone.com/news/budget-2014-pic-scheme-extended-until-ya2018, http://business.asiaone.com/news/budget-2014-more-support-singapore-companies-raise-funds

With the above support from the govt, we can look into a few areas for growth story and avoidance sector.

• Avoid property sector and Company that produce alcohol
• Look for companies that is less than 1.3bil in mkt cap as they are defined as Mid cap and small cap
• Blue Chips companies will not be in focus as their total operating cost will be increased due to increase in 1% CPF contribution. Thus avoid.
• Buying REITs only if it is undervalued and has more than 5.5% in dividend. This requires researching REITs 

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.