Tat Seng Pkg(T12)

Draft: 3/6/2017 (Price: $0.52, market value: $81m)
Data source: IPO Prospectus, 2005 company announcement, 2016 unaudited FR,

Business: manufacture and sale of corrugated cardboards.
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History
Then
2001, production capacity SG: 14,868 tonnes, CN: 20,895.
Controlled by Mr Low See Pong(45%) and Loh See Moon(15%)
IPO: 0.21/share, 39,300,000 shares(new), 157,200,000(total)
NAV: 24.5cents
EPS: 3.63cents
Inventory turnover: 115d, 107, 87 for FY1999, 2000,2001.

A family business started in 1960+, directors & key executives are all relatives.
300+ employees

$'000	1999	2000	2001
Turnover	20,610	27,776	33,505
PBT	3,329	3,789	5,097
	16%	14%	15%
SG	79.70%	59.80%	52%
PRC	20.30%	40.20%	48%

Later
Acquired by PSC, Mr. Allan Yap in 2005.
79,820,000 ordinary shares of total S$16,961,750 (based on S$0.2125/share) and  is  arrived  at  on  a  willing  buyer  and  willing  seller  basis, at 7.61% discount at prevailing $0.23 price on Oct 2005. ~50.78% of the entire share capital.

Now

million	2006-12	2007-12	2008-12	2009-12	2010-12	2011-12	2012-12	2013-12	2014-12	2015-12	2016-12
Revenue	55	75	96	113	153	167	180	216	225	231	228
GP%	20.0%	17.2%	16.6%	21.8%	17.5%	15.4%	19.4%	20.3%	20.2%	21.1%	22.6%
OP	3	6	4	10	9	7	11	17	16	19	17
OP%	4.9%	8.2%	4.6%	9.0%	6.0%	4.2%	6.1%	8.1%	7.1%	8.2%	7.5%
NP	2	6	3	7	6	4	8	12	9	12	14
Operating CF	5	2	-4	5	10	2	9	11	11	33	24
CAPEX	-1	-5	-2	-2	-7	-5	-10	-11	-9	-7	-9
FCF	4	-3	-6	4	3	-3	-1	—	2	26	15
EPS/share($)	0.01	0.04	0.02	0.05	0.04	0.03	0.05	0.08	0.06	0.08	0.09
NAV/share($)	—	0.3	0.33	0.34	0.36	0.37	0.42	0.46	0.51	0.6	0.66

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Risks
Barrier to enter corrugated paper packaging is rather low.
Environmental pollution control: the production process causes storage and usage of hazardous substances.