浅谈 GESHEN

GE-SHEN CORPORATION BERHAD (精密塑料制造商)

Core Business

Engineering Services (设计模具)-Design for manufacturability, Computer aided design, Computer aided manufacturing, Mould flow analysis

Tool Fabrication (模具加工)-CNC milling, Electric discharge machining, Wire electric discharge machining, Polishing, Grinding

Injection Moulding (注塑成型)-Thermal cycling, Multistage hydraulic core pull moulds, Over moulding, Control room moulding, High precision moulding

Secondary Processes (二次处理)- Spray Painting, Screen printing, Induction bonding, Ultrasonic welding, Heat staking

Sales Flowchart

01 Order 订单

02 Tooling Design 模具设计

03 Discussion 讨论

04 Tool Making & Testing模具制作与测试

05 Injection modelling 注塑建模

06 QA Inspection 检验

07 Secondary Process 二次处理

08 Assembly 大会

09 Final Product 最终产品

Example: Automotive parts, Consumer electronics parts, Medical products

Management

Shareholding of Pelita Niagamas Sdn. Bhd in Ge-Shen had increased from 14.31% to 52.67%, on 11 August 2015 take-over the company. After that reduce the number of share to maintain the listing status of Ge-Shen.

Mr. Chan Choong Kong was appointed to the Board on 23 April 2015 as an Executive Director. On 9 September 2015, he was appointed as Joint Managing Director and was subsequently redesignated Managing Director on 29 February 2016

Financial Highlights

	2012 RM’000	2013 RM’000	2014 RM’000	2015 RM’000	2016 RM’000
Revenue	89,603	80,384	85,000	137,441	185,523
Net Profit	1,781	2,197	2,544	12,692	15,157
Profit Margin	2%	2.7%	3%	9.2%	8.17%
Dividend Yield	-	-	-	-	-

Quarterly Report Analysis

-Revenue increase of 44% compared to the corresponding quarter last year

-Higher revenue due to acquired Polyplas Sdn. Bhd. and increase in sales volume from certain existing customers and new customers.

- Trade receivables 1 times compared 2015

- Non-Current Liabilities increased 4 times compared 2015

- Current Liabilities increased 1 times compared 2015

- (Cash +  Trade receivables) < Current Liabilities

Segmental Information

Business Prospect

-Proposed establishment and implementation of an Employees’ Share Option Scheme (“ESOS”) for the eligible employees and eligible Executive Directors of Ge-Shen and its subsidiaries. It is cost to the Group and dilution to existing shareholders

-Contracts being negotiated in Ringgit terms.

-Fareast imported wage-inflation and financing cost may be increased

-Having acquired land and buildings in our subsidiaries in Ge-Shen Plastic Sdn Bhd in Johor, Malaysia and Ge-Shen Vietnam Co. Ltd in Hai Phuong, Vietnam (which were both completed in 4Q2016). After completion of manufacture facilities will be implemented to generate revenues.

-RM44.5 million to deployed for capital expenditure (CAPEX) to increase its manufacturing capacity and capabilities

History

-May 2015, acquisition of 75% equity interest in Polyplas Sdn. Bhd. for a total consideration of RM33,756,253. (47% is funded by internal fund and 53% proceeds from issuance of the Redeemable Convertible Preference Shares)

- May 2015, disposal of the loss making subsidiaries

-September 2016, acquired the remaining 25% equity interest in Polyplas Sdn. Bhd.

-September 2016, acquired 70% equity interest in Demand Options Sdn. Bhd, remaining 30% will acquired after 3 year. Helping Tool Fabrication (模具加工) and reach Singapore market.

- October 2016, acquisition of a double storey detached warehouse for a consideration of RM9.5 million from TNLOGIS, reduce rental cost.

Disadvantages

-Facing seasonality

-High gearing (debt)

-May face shortage of fund

-low profit margin

-----------------------------------------------------------------------------------

新的两间产房有助于提升盈利，收购发展导致债务过高。

Current Price 1.98

Target Price 2.30 (not include the two new land in Malaysia and Vietnam)

本部落格一切言论和资料纯粹是我本人个人的参考记录, 绝无任何买卖建议。 任何人因看此部落格的文章而造成任何投资损失, 恕不负责。

.