The 1H(ended 30Jun09)-FY09 results announcement released last evening makes interesting reading.....
After quite a few years of efforts to grow the business, I think this large and well-established local corrugated box producer with 2 large plants in PRC is finally showing some colours in its business and financial results!.....and the company is even paying an interim div. of $0.01/share!
With a current market cap. of only $29.9m (based on the 157.2m issued shares and the last done share price of $0.19), and against the current scale of Tat Seng's business - rev. at some $105.0m p.a., NP at some $6.0 p.a., aftertax FCF (before capex) at some $9.3m p.a., and NAV of $55.6m - the counter is quite obviously grossly under-priced! If profits can continue to rise, then it is highly possible that the counter will be re-rated in a big way.....
Already some smart investors have started actively picking up the shares this morning. So far, the counter has gone up $0.015, or 8.6%; but at $0.19, it is still a long way off its NAV/share of $0.354 as at 30Jun09!
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