Business Description:
Tong Herr Resources Berhad. The Group's principal activities are manufacturing and selling stainless steel fasteners. Products include nuts, bolts and screws and all other threaded items. It also operates as an investment holding company. Operations are carried out in Malaysia and Thailand. The Group distributes its products to Asia, Europe, North America and other countries.
Wright Quality Rating: LAC0
A quick look at Tongher
http://spreadsheets.google.com/pub?key=tfz75IeJ7n6inThzlEPxfMg&output=html
This is a cyclical stock. Its industry is down with the poor economy. However, its balance sheet is strong. It has turned in profits for the last 2 quarters. It has cash equivalent of RM 155.331 million and this equates to cash of RM 1.22 per share.
Shares Outstanding: 127.43 million
Closely Held Shares: 77.320 million
Why does this company keep so much cash unproductively employed?
Tongher's cash would have a big fall by this year with it's investment into steel billet factory at Vietnam and acquisition of 51% equity interest in Metech Aluminium.
ReplyDeleteI'm optimistic on its aggressive move in business expansion.
It's a value buy stock in midterm or long term investment.
http://announcements.bursamalaysia.com/EDMS/edmswebh.nsf/all/482576120041BDAA4825761C002D77F9/$File/THRB-Announcement.pdf
ReplyDeleteTong Herr will provide a capital outlay of RM equivalent 70.178 million to own 37.04% (18,518 shares) in the JV Company for investment into Vietnam.