A Look at CWT Limited

Let's look at CWT Limited and its financial data for the past 10 yrs,

CWT Limited was listed on SGX Mainboard on 12/4/1993

Financial Data

Year               Earnings per Shr            Revenue (mil)             Net Profit % Margin
                      
2013 Q2            7.52cents
2012                  17.98cents                        5397.046                             4.7%
2011                  9.59cents                          2579.696                             2.13%
2010                  30.39cents                          747.181                             24.4% *           A 1-time gain
2009                  5.91cents                            623.929                             5.9%
2008                  12.87cents                          602.708                             14.6%
2007                  6.65cents                            534.658                             6.9%
2006                  5.90cents                            326.739                             8.6%
2005                  5.83cents                            248.176                             3.82%
2004                  1.39cents                            239.687                             1.44%
2003                  0.7cents                              213.250                             0.467%

Average           9.471cents                            N.A                                 7.3%
(2003 - 2012)     

Other Data (as at 30 Jun 2013)

Debt:

• Current : 733.764 mil
• Total : 919.068 mil

Cash Balance: (255.781) mil

Shares Issued: 600, 304, 650

NAV: $ 1.036

Business Model

CWT has the following segment of operation:

1. Logistic svc  -  warehousing , transportation, freight forwarding, cargo consolidation, supply chain mgmt, collateral mgmt svcs, container mgmt svcs
2. Commodity SCM - trading and mgmt of base metals and energy products
3. Engineering svc - mgmt & maintance , supply & installation, property mgmt and design and build logistics properties
4. Others  - financial svcs and investments

Opinion

With the research on CWT, we can generally have some understanding that CWT has managed to grow at an average of 9.5cents per yr with a earning power of 7X.

On the flip side, the company has expanded aggressively since 2011 and currently has a negative cash balance of -255 mil. This does not bodes well as we can know that there is a 733 mil outstanding loan to be paid within this year. From the above point, this company has to borrow $$ from the money mkt to pay off its outstanding loan.

Conclusion

Given that its current is around $1.33, I would not enter at this point. This counter has to go below $0.80 to become attractive for any investor to start to accumulate.


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.