Sunday, April 17, 2016

Tai Sin Electric - My CNAV Analysis

Just recently, a friend of mine text me and share with me a "Kang Tao" (Hokkien for opportunity) counter, a small cap company called Tai Sin Electric Ltd (500.SI). Of course, the first thing I do is to do my due diligent and dig in further. 

Hence this post on Tai Sin Electronics' CNAV analysis.

Tai Sin Electric is an investment holding company, manufactures, trades in, and distributes cable and wire products. The company operates in Cable & Wire, Switchboard, Electrical Material Distribution, Test & Inspection, and Others segments. It primarily operates in Singapore, Malaysia, Brunei, Vietnam, and Indonesia. The company was founded in 1980, listed in SESDAQ in 1998 and subsequently transferred to the SGX Main Board in 2015.

The Key Quantitative Indicators of CNAV Strategy (Basing on the 2015 Annual Report):

Net Asset Value (NAV) = $0.35
Conservative Net Asset Value (CNAV2) = $0.137
Current Price = $0.32
Discount For CNAV2 = -132%

Conclusion : From the price's perspective, it is traded above the CNAV2 but is marginally below the NAV. 

The P.O.F Scores of CNAV Strategy:
Profitability Score = 1 (With the PE ratio of 8)

Operational Efficiency = 1 (with three consecutive years of positive operating cashflow)

Financial Efficiency = 1 (Debt To Equity Ratio of 36%)

Conclusion : A perfect POF indicators.

Other information:
1. The company has a strong Balance Sheet with positive Free Cash Flow of about $22 mil.
2. For the past 3 years, the company has a consistent dividend yield of about 6.9%.
3. For FY2015, the Group’s turnover for the year declined by 5.66% to $289.96 million from $307.35 million for the previous financial year.
4. For FY2015, the Group’s gross profit was $54.43 million, a drop of 13.52%, compared to the previous financial year. Profit before tax declined 22.08% to $20.43 million. Earnings per share was 3.92 cents as compared to 4.96 cents in the previous financial year.

Click here for the pdf copy of Tai Sin Electronics' 2015 Annual Report!

Tai Sin Electric is not a CNAV stock but worth a second look for potential income play. 

Are you vested on this counter? What is your take?


Note : Do You Own Due Diligence!

I've learnt this not-difficult-to-do calculation from the Value Investing Mastery Course (Big Fat Purse) last year. Immediately after the one day course, I am on my own to calculate the CNAV myself. With the help of the idiot-proof spreadsheet (provided free after the course), it makes calculating the CNAV a breeze.

Oh, by the way, they are still conducting the one-full-day Value Investing Master Course at $98, which is unbelievable. From what I know, most of their classes, which usually happen on the weekend, are fully booked. So, if you are interested to learn more about Value Investing and how to calculate the CNAV, you should find out more from the horse's mouth! 


  1. Have feeling that your analysis may require market crash or big bear to be executable?

    1. Cw8888 : hahaha, ya, from pure CNAV perspective is looooong way to go.. :-)

  2. So due to yr analysis you will not be investing?

    1. TUB : Not necessarily so as my investment strategy not 100% pure CNAV.. I will still consider it for income play ;-)

      Just curious, are you vested in this counter?


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