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