Leeden Limited

Leeden Limited

Postby Blackjack » Tue Jan 12, 2010 11:26 pm

Let me have the honour of starting a thread on Leeden.

Formerly known as Ace Dynamics, the Group's principal activities are distributing welding and safety products, industrial gases and related services. Since the current CEO Steven Tham took over in 2000, core business has been picking up and unrelated businesses are written off.

I personally quite like this company for a number of reasons.
1) Astute leadership and management
2) Improving profit margins and revenue
3) Good growth avenues

30D, 100D and 200D MA are also drawing closer for the technically inclined.

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Re: Leeden Limited

Postby Aspellian » Wed Jan 13, 2010 9:25 am

They did quite a few acqusitions last 2 years. acquisitions mainly on cash-generating companies that have mature in their respective markets / limited growth. But it does help to diversify revenue base. prob through Leeden leverage on customer network, cross-selling of products to same customer base (mainly O&G) can be achieved.

management been buying back shares consistently (belief?). But share liquidity low. need to be VERY patient and buy and hold. From march rally of $0.325, it is now still $0.35. :(

not sure bout the dividends though. is it a family-owned SME? not sure on this.


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Re: Leeden Limited

Postby Blackjack » Wed Jan 13, 2010 11:32 pm

I agree one downside is that liquidity is really low. If fundamentals take a dive one may really find it extremely difficult to bail out. But seeing the active buyback by the management, I am quite comfortable that at least for now, things are still looking good. From what I see though, much of the shares is under public hands so I believe the holders are not speculators by nature.

Management has also commented that it expects its full year performance for 2009 to be better than the year before. I'm guessing they should be able to fulfil this expectation.
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Re: Leeden Limited

Postby Blackjack » Mon Feb 08, 2010 9:59 pm

Full year results will be released on 1 Mar.
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Re: Leeden Limited

Postby Blackjack » Mon Mar 01, 2010 8:58 pm

Full year results are out-
---------- 2009 2008
turnover 186,148 157,239 Revenue increased 18.3%, industrial revenue exceeded group revenue for FY08
cogs 132,177 113,875
stocks 38,943 46,216
Inventory turnover 76 107

PAT 13,894 14,537 If negative goodwill of $2.5million taken out of consideratio, PAT would grow 13.3% yoy
profit margin 7.4% 9.2%

Non-current assets 73,642 65,357
Current assets 126,516 120,789
Non-current liabilities -23,026 -17,929
Current liabilities -79,360 -81,020
total shareholder equity 97,772 87,197
debt/equity ratio 1.04 1.13

EPS 5.05cts 6.65cts Historical PE of 7x does not make it extremely attractive. Was expecting less.
NAV 40.4cts 36.1cts

Overall the distribution cost and adminstrative costs increased by 42.7% and 23.6% due to consolidation of gas business, and its strategy of offering closer support to her clients. Revenue may have increased but this was done so at the expense of its profitability. Question is can these 2 components can be reduced going forward, considering this is still the early stage of integration. To enhance its safety business manufacturing capability, the Group also invested in a manufacturing plant for its fire fighting equipment in China, operational by 2H10.
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Re: Leeden Limited

Postby Blackjack » Thu Mar 04, 2010 9:23 pm

I have a question here. The profit attributable to minority interests increased from $2.82 Mil in FY08 (19.4% of PAT) to $4.99 Mil in FY09 (35.9% of PAT) comparing yoy, which I feel is a pretty high percentage assuming it translates directly to the amount of minority interests.

Does anyone know the reason for such large increases typically? Is the percentage considered "normal"? Conversely, would such ratio normalise over time?
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Re: Leeden Limited

Postby Blackjack » Thu Mar 18, 2010 9:58 pm

Large married deal of 8400 lots done this morning at 40.5 cents. Turns out its by substantial shareholder Ong Nai Pew. Interesting, he did an open market purchase just 3 days ago. I wonder who was the one who bought over the stake.
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Re: Leeden Limited

Postby Blackjack » Wed Apr 21, 2010 10:14 pm

Turns out its a stake by National Oxygen Pte Ltd, after my last posting. (National Oxygen Pte Ltd (NOX) is a wholly owned subsidiary of Taiyo Nippon Sanso Corporation, Asia number 1 industrial gas manufacturer.)

Non-executive director Hendra Harjadi has also been moping up stakes since then.
Mr Harjadi is the Managing Director of various companies in Indonesia and has over 30 years of experience managing companies in the oil & gas and retail industries.

S&P released a report on Leeden recently.

“2010 should be better. We expect the worst is over for the marine and oil & gas sector, although growth in 2010 should still be fairly sluggish. We do not expect marine activities to rebound substantially in 1H10, but repair and maintenance activities should pick up the slack.

Profit to rebound in 2010. For 2010 we expect a rebound in reported profit to SGD9.9 mln (+11.6% YoY), on the back of an economic recovery for its major markets Singapore and Malaysia.”
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Re: Leeden Limited

Postby pierre07 » Fri Sep 24, 2010 7:54 pm

It appears in this week The Edge :)
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