Allan International 0684

Allan International 0684

Postby stilicon » Fri Jun 24, 2011 7:15 pm

Up almost 6% today. No news as usual.

Noted on ET Net that David Michael Webb (from the Webb site, if I understand correctly) hold 10% along the Cheung family. Did he make the due diligence better than most people ? I hope so (being vested).

Is Allan a value opportunity in a market where fear rules for some time, or is it cheap for some good reason ? Start of an answer soon (on 27/6/2011, they will release their annual result.)
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Re: Allan International (0684)

Postby winston » Fri Jun 24, 2011 7:42 pm

Not vested

Consumer goods company - Food Processor & Mixer, Juicer & Blender, Deep Fryer, Kettle etc.

( No repeat orders )

PE 7;
Support at 3.50 ?
Yield 6%


Interim Report:-
http://www.hkexnews.hk/listedco/listcon ... 209157.pdf


Annual Report 2009 / 2010
http://www.hkexnews.hk/listedco/listcon ... 708103.pdf


Auditor - Deloitte ( same one as Real Gold )

Company Website:-
http://www.allan.com.hk/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Allan International 0684

Postby stilicon » Tue Jun 28, 2011 2:39 pm

Results were poor, but not so bad : http://www.hkexnews.hk/listedco/listconews/sehk/20110627/LTN20110627385.pdf

- Net Income down (-14%)
- Net Asset/share keeps increasing (by about 12%).
- Div. reduced at 20c yearly (ie 6,3% at 3,15HKD today)
- No cash flows info yet, as usual in HK.

Reaction of the market in line with the current hyper nervosity, ie excessive.
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Re: Allan International 0684

Postby stilicon » Fri Jul 01, 2011 3:01 pm

Noting that the family Cheung seriously increased its stake following the decrease of the share price :
(as per Disclosure of Interest table on ET Net) :

Date Shareholder name Reason of Disclosure Buy/Sell and Involved Shares Average Price per share Current Holdings % of Issued Shares
28/06/2011 Cheung Shu Wan 121(L) +270,000(L) HKD 3.140(L) 197,415,295(L) 58.85
28/06/2011 Cheung Lun 121(L) +270,000(L) HKD 3.140(L) 148,029,960(L) 44.13
28/06/2011 Cheung Lai See Sophie 121(L) +446,000(L) HKD 3.130(L) 149,205,960(L) 44.48

Vote of confidence in the company's future ?
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Re: Allan International 0684

Postby stilicon » Tue Nov 29, 2011 1:34 am

Results for 1H2012 are in :
http://www.hkexnews.hk/listedco/listconews/sehk/2011/1128/LTN20111128431.pdf

Not exactly fantastic.
- Net Income decreases by 43%.
- NAV per share shows about no increase.
- Interim div halfed compared to LY : 2,5cHK vs 5cHK.

The market is though. Clients in EU, USA are not in great shape. Inflation of cost in China doesn't help.
Yet all that was known and anticipated, and so probably in the price.

One good thing is the focus of the company to invest in order to increase productivity. Will it pay one day in the future ?

It is the kind of company where I would say "Yes, probably".

Since no one covers this kind of company, I noted with amused interest this link :
http://alphavulture.com/2011/11/24/allan-international-holdings-limited-0684-hk/
(another fool like me ?)

(below a synthesis of Allan:
ficheSoc Allan.gif
)
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Re: Allan International 0684

Postby kennynah » Tue Nov 29, 2011 2:35 am

all the best stilicon
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Re: Allan International 0684

Postby stilicon » Mon Jun 25, 2012 9:38 pm

results for FY2012: http://www.allan.com.hk/attachment/20120625203201001452076_en.pdf

few notes :
- revenue increases by 8,8% to 127 M HKD.
- annual div : 15cHKD ie a yield of about 7,7%, which represents a pay-out ratio of 40% (on Net income).
- as usual with HKex regulated companies, no Cash Flows info until the proper Annual Report publication...
- at HKD 1,95, this co. is valued at P/B 0,69, P/E 5,1, Ev/Ebitda about 3,5, etc.
- debt is negligible.
- during the last 5 years (FY07 to FY12), shareholders' equity per share increased from 1,472 HKD to 2,807, i.e. at a CAGR of about 13,8%.
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Re: Allan International 0684

Postby stilicon » Thu Nov 29, 2012 12:25 am

results for 1H13 : http://www.hkexnews.hk/listedco/listconews/sehk/2012/1128/LTN20121128313.pdf

- revenue : +1,1%,
- net income : +15,5% at HKD59,6 Million,
- no CF info as always with those lazy HKers,

note :
- net income includes HKD9,5 million reevaluation gain on investment property, ie more than 100% of the net income increase YoY...
- revenue trends : -10% in Europe, slightly down in Asia (!?), and big plus for the Americas.
- interim div 2,5cHKD, same as LY.

=> not really inspiring. However :
- Dividend is still solid (if 15c for FY13, that's about 6,9% net at today's value of HKD2,17), as long as the profitability is maintained ( :roll: ).
- NAV per share steadily increased every year.
- valuation already falled (P/B at 0,75 ...)

(vested)
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Re: Allan International 0684

Postby stilicon » Mon Dec 10, 2012 4:31 pm

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Re: Allan International 0684

Postby stilicon » Sat Jun 29, 2013 10:35 pm

annual results : http://www.hkexnews.hk/listedco/listconews/SEHK/2013/0624/LTN20130624572.pdf

a few notes :
- revenue down -2,5%
- operating result down (however you compute it ; say minimum at -20%)
- net income down to 108 M HKD (-14%)
- ROE still decent at about 10 - 11% (down from 13,5% LY, 19% in FY2011, and 25% in FY2010 ; the trend is clear)
- no OCF info yet, as usual.

However, I think Allan is a good, wisely managed, family company :
- net debt is nill.
- dividend is 12,8cH TY (with a payout ratio of about 40% as usual) for a div yield of about 5,3%
- NAV increases every year, whatever the valuation of the share at HKEx. It reaches 3,0 HKD this year( +7% vs LY). It was 1,472 HKD at 31/3/2007, so that they doubled the NAV (x 2,04) over 6 years (about 12,6% cagr).
- the share is inexpensive at P/B 0,80 or P/E 7,4 or Ev/NOPAT at 10,0, although I don't expect any serious improvement there.

Strategically, their position is tough. They surfed on the now defunct wave of outsourcing for cheap manufacturing in PRC. They sell mostly to Europe (obviously in decline, and no reversal in view). They managed to develop recently a growing business with the Americas. What I don't understand is why they can't develop sales to Asia.

One thing they seem to clearly understand is that their future relies on a permanent increase in productivity and increased automation.
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