Hotung

[winston]

vested

HOTUNG INVESTMENT HOLDINGS (HIH SP)
Undervalued

Ex-dividend, HIH has been buying back shares at S$1.72-1.90, indicating management’s confidence in the firm and the undervaluation.

Despite a consistently profitable portfolio, HIH is currently undervalued at 0.5x P/B with around half of its market cap in net cash, while offering 8.1% 2017-18F dividend yield.

With a booming outlook in Greater China’s tech space and new-income potential, we think HIH can do better. Maintain BUY and target price of S$3.38.

Source: UOBKH

https://research.uobkayhian.com/content ... e95c22c4c5

[behappyalways]

hotungs-3q-earnings-grow-11-42-mil-lower-impairment-losses-and-expenses
https://www.theedgesingapore.com/hotung ... d-expenses

[winston]

vested

Hotung Investment ($1.66, down 1 cent) announced the listing of one of its investee companies, Fusheng Precision Co., Ltd. (“Fusheng”), on the Taiwan Stock Exchange CorporaƟ on on 18-
Dec-18.

The Group had invested in Fusheng since August 2017.

The Group highlighted that Fusheng is the world’s largest golf club head contract manufacturer, with a market share of more than 40%.

Fusheng’s customers are leading golf equipment brands such as Callaway, Titleist, Ping, and TaylorMade.

More than 90% of Fusheng’s revenue is derived from golf equipment, including golf club head and graphite shaft.

Fusheng also manufactures aerospace and automotive parts and industrial precision products.

Fusheng’s production sites are in Taiwan, China, Vietnam and the US.

Fusheng have considerable expertise in precise metal processing technologies, such as casing,
forging, cosmetic finishing and machining.

With a leading market share of more than 40%, the Group believes that Fusheng has cost
structure advantage over golf equipment peers, and looks forward to gaining market share.

Fusheng is also seeking growth opportunities besides golf equipment business, and extending expertise in precise metal processing to aerospace and automotive industries.

Source: Lim & Tan

[winston]

vested

HOTUNG INVESTMENT PTE LTD – A HIGH YIELD STOCK?

Hotung has a cash balance equivalent to 40% of market capitalisation now.


NAV reliable?

One of the selling points for Hotung is its perceived huge discount to NAV (net asset value). Current PB ratio is about 0.57.

However, if you look at the financial statements disclosure, a large proportion of its investments are classified in level 2 and level 3, of which investments in level 3 takes up slightly more than 50% of its total investments.

This shows that the valuation for its investment portfolio is subject to substantial uncertainty and judgement.

When we look into the cashflow statements, the operational cashflow is negative for year 2016 and 2017, which is very alarming.

Source: Writing Of Investing Noob

https://writingofinvestingnoob.com/2019 ... eld-stock/

[behappyalways]

more than 10% yield


The company plans to pay a dividend of NT$4.02484 per share (19 Singapore cents), versus NT$2.558 per share paid for FY2019.
As at Dec 31 2020, the company’s net asset value was NT$64.61, or $3; versus NT$63.41, or $2.85 as at Dec 31 2019.

Hotung FY2020 earnings of NT$521.5 million up 70% y-o-y
https://www.theedgesingapore.com/news/r ... n-70-y-o-y

[behappyalways]

Not vested but a good counter with nice dividend

https://links.sgx.com/1.0.0/corporate-a ... 13185fac9b