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|(Post 1 of 614) 06/11/1999.15:47:00|
|| POEMS recommendataion (Same report sent under recommendation section)
Price : US$0.895 (26/3/99)
Recommendation : Accumulate
Magnecomp announced excellent results. The results beat expectations. Net profit jumped by 68.4 percent on turnover of $130.3m, giving earnings per share of 12.9 cents for the full year. This was despite a turnover growth of only 7.3 percent. Net tangible assets also increased significantly to 47.9 cents as the company expanded operations after its IPO last year.
Magnecomp experienced a good year despite the slump in the disk drive industry. Magnecomp's main business is producing suspension assemblies for disk drives. The company also makes stamped metal
parts through a subsidiary company, and this accounts for about 20 percent of Magnecomp's total revenues. Shipments for suspension assemblies rose 6.7 percent to 127m in 1998. Magnecomp has the
capacity to produce more than 400m suspension assemblies and has rapidly increased its market share to 16 percent since its IPO.
Outlook for the year will depend on TSAs. Magnecomp expects growth in the trace suspension assembly market to be the main driver for the year. Management has indicated that orders for the first and second quarter have been weaker than expected, but that a pick-up should come in the second half from TSAs. Net profit margins are also expected to increase further because TSAs command higher prices.
Financials remain strong. The company is in a net cash position, and holds about US$14m in cash. Debt has been reduced from $26.3m six months ago to less than $15m, giving Magnecomp a gearing of under 0.2 times. Interest cover is also very healthy at 11.7 times. The company will also be toning down its proposed capital expenditures for the year in view of the changing economic environment, and has scaled its proposed capital expenditures by half to about US$15m.
Continued product improvements will drive future growth. Magnecomp invest heavily in research and development. Aside from trace suspension assemblies, its is also working on micro-actuator
suspensions. It has been granted more than 11 patents with 49 still pending. Net profit for 1999 is forecast to be $28.6m, giving a forward price earnings ratio of 10.1times. The first half is likely to be weak, but the pickup in the second-half along with the expected recovery in the disk drive industry should provide impetus for further long-term growth. Accumulate.
$ m YE 31 Dec 97 98 % 99F
Turnover 121.4 130.3 7.3% 161.0
EBIT 18.5 21.1 14.0% 27.7
PBT 16.4 26.0 58.6% 30.7
Net Profit 14.4 24.2 68.4% 28.6
EPS (¢) 7.7 12.9 68.4% 15.2
NTA/Share (¢) 19.8 47.9 141.9% -
PER @ US$0.895 20.1 11.9 - 10.1
Phillip Securities Research Pte Ltd, its directors, and research staff have no interests in the securities recommended, and its associates
may also have positions from time to time.
|(Post 2 of 614) 09/01/1999.21:58:00|
||MAGNECOMP INT'L LIMITED - AGREEMENT WITH SONY CHEMICALS
Sep 01, 1999 (Asia Pulse via COMTEX) --
(Disclosure to the Stock Exchange of Singapore on Sept 1, 1999.)
The Board of Directors of Magnecomp International Limited (" the Company" ) is pleased to announce that Magnecomp Corporation ("Magnecomp" ), a subsidiary of the Company, has entered into an Agreement (" the Agreement" ) with Sony Chemicals Corporation (" Sony" ) to jointly collaborate on the development of wireless flexure components.
Under the Agreement, Magnecomp agrees to develop and qualify the products and processes resulting from this collaboration, while Sony agrees to manufacture the products for Magnecomp. The products will be key components for use in disk drives.
The Agreement enables the Company to meet design technology requirements of its customers, develop a strong working relationship with Sony, and continue its advancement into development of wireless suspension assemblies. The cost of this Agreement will not have a material impact on this year's financial results.
None of the Directors or substantial shareholders of the Company has any direct or indirect interest in the transaction.
Submitted by Wesley H Burkhart, Director on 01/09/1999 to the SES
|(Post 3 of 614) 09/21/1999.09:53:00|
|| Fraser calls for SELL
Although the company had warned of poor results for 1H99 due to drastically reduced volume orders from Seagate, we were still unprepared for the magnitude of its troubles. Judging by consensus net profit estimates of S$25.3m for FY99, neither did the market. The S$4.4m in 1H99 fell far short of our expectations. We had a full year net profit
estimate of S$24.8m.
Clearly, the company will report lower profits in FY99 (vs. FY98). This much was admitted by management. The 4Q is a strong building season for HDD makers. Given Magnecomp’s unit shipments of 30m units in 3Q99, we believe 4Q99’s 35m target is achievable. Beyond that, Magnecomp will continue to benefit from the reinstatement of orders from Seagate, traditionally Magnecomp’s largest customer. It was for this reason that 3Q99 unit shipment was substantially higher than 2Q99’s. The adoption of wireless suspension assemblies has been on the back-burner for 1-2 years. While Magnecomp expects to start supplying Seagate with these starting from mid-2000, visibility is poor; hence we have not build in a significant volume of these in our model.
Based on our new revised estimates, the shares are valued at US$0.35 using our PER relative valuation approach. SELL.
|(Post 4 of 614) 09/22/1999.10:25:00|
||Magnecomp suffering heavy earnings downgrades
Singapore, Sep 21 -- Analysts' earnings estimates for Magnecomp International are being cut aggressively, by as much as 70 percent, after the company announced a poor set of interim results last night.
Magnecomp's 1H99 net profit was down by 72 percent to $4.4mln with turnover falling by 33 percent to $45.3mln due to a 51 percent drop in the volume of suspension assemblies shipped from 71mln to 35mln units. At half-time, its EPS of 2.2 Sing cents compares poorly against some analysts' full year pre-announcement estimates which range from 11 to 14 Sing cents.
Magnecomp's management had already indicated earlier that 1H99 results would be weak and this prompted many analysts to pare their forecasts. But this performance and management's rather pessimistic comments looks likely to kill hopes of a profit rebound in 2H99.
After the latest revisions, Magnecomp's forecast EPS range for FY99 is now between 5.5 to 7 Sing cents and 7 to 9 Sing cents for FY2000. At its current mkt price of US$0.73, the stock is therefore trading at around 20 times and 15.5 times FY99 and FY2000 earnings respectively. Most analysts have downgraded their recommendation on the stock to Sell, although we noticed that one has actually upgraded from Sell to Hold on the basis that the stock is already bombed out.
With the disk drive industry geared towards cost cutting as a result of focus on lower-end of the market, the underlying message is that earnings visibility for Magnecomp from FY2000 has turned hazy. Due to this uncertainty, we suspect that even though the stock has already fallen almost 50 percent from its June high of US$1.35, any rebound will be obstructed by sellers. Immediate support is at 70 US cents, and if that fails, a drop back to 50 US cents is a possibility.
|(Post 5 of 614) 09/22/1999.12:01:00|
|| Lum Chang also call for SELL ...
From Lum Chang (21/09)...
MAGNECOMP INTERNATIONAL LTD ~ Interim profit plunged 71.9% to S$4.4m
Price : US$0.79
Recommendation : Sell
Half Year Ended
30 Jun(S$’m) 1999 1998 Change(%)
Turnover 45.34 68.11 (33.4)
Net earnings 4.40 15.66 (71.9)
EPS(Sing cents) 2.2 7.9
NTA per share(Sing cents) 51.3 46.0
The 72% plunge in interim earnings from S$15.66m to S$4.4m was worse than expected. The larger than expected fall in profits arose from a 51% decrease in the volume of suspension assemblies shipped(from 71m units to 35m units), price erosion and slow demand in wireless suspension.
Sales declined 33.4% largely due to weak volume shipment in the first quarter which could not be made up by the 39% q-o-q volume increase in second quarter. The decrease in volume sales in 1Q was because of the fall in orders from Seagate which partially relied on its in-house production of suspension assemblies. Orders from Seagate picked up from May onwards following Seagate’s plans to discontinue its in-house suspension assembly production.
Both the operating and pretax margins fell from 25.4% and 24.5% to 15.7% and 7.8% respectively. The 34.7% increase in depreciation costs
and 63.1% fall in forex gain depressed pre-tax margins. No dividend was declared for the interim period.
The group expects FY99 earnings to be below that of FY98 where earnings of S$24.2m were achieved. The forecast rides on the management’s expectation that the soft demand will result in a lower overall volume for 1999. The delay in the ramp up for wireless suspension assemblies also slows down potential contribution from this new growth driver.
Following a recovery of orders from Seagate, the group expects full year unit shipment to be between 100m to 110m units. This compares to the 127m units shipped in FY98. Additionally, ASPs for conventional suspension assemblies are expected to hold at S$0.45. We will therefore
expect FY99 revenue to decline.
With regards to the wireless suspension, ASP has fallen from $1.10-$1.20 range to S$1.00. The cost cutting measures taken by the HDD industry players to counter the price competition have also slowed down the transition from conventional suspension assemblies to wireless suspension assemblies among the major disk drive makers. As a result, demand for the wireless suspension remains soft.
We have revised our earnings projections for FY99 and FY00 downwards as a result of the lower-than expected interim results, the lower volume
shipments and the bleak industry outlook for the disk drive industry. Based on net earnings of S$10.4m(EPS=5.2 cts) for FY99 and S$12.9m(EPS=6.4
cts) for FY00, Magnecomp is trading at prospective PERs of 25.8x and
21.0x. The PER valuations put Magnecomp above its listed peers such as MMI’s PERs of 16x(FY99) and 14.3x(FY00) and Brilliant’s PERs of 21x(FY00)
and 18x(FY01). Magnecomp is thus overvalued at current share price of US$0.79 and we expect the share price to adjust downwards.
Thereby, we downgrade Magnecomp to a “Sell”.
Not hold any
|(Post 6 of 614) 11/08/1999.15:08:00|
|| Magnecomp’s major competitor in suspension drives, Hutchinson Technology Inc. (listed in Nasdaq), reported on Nov 3 fiscal fourth quarter net loss of $0.05 per share, below consensus EPS expectation of $0.07 profit. Reuters reported that the loss resulted from weaker than expected demand and under-utilization of capacity. It is expected that transition to new internal components is slow and demands for suspension drives continues to be soft in the near-term. Goldman Sach and Hambrecht & Quist immediately downgraded the stock from the original Recommended List and Buy respectively to Market Perform. At the end of 1998, Hutchinson held 70% global market share of suspension drives while Mangnecomp was at a distant second, holding 13%.
Hutchinson’s fourth quarter loss confirms the poor short term outlook for the disk drive industry. In Semptember, Magnecomp reported a disappointing 72% plunge in interim profit to 4.4m, resulting from a decrease in volume of suspension assemblies shipment, price erosion and a slow demand om wireless suspension. After the result announcement, the stock was under heavy downgrades by most houses to Sell/Underperform and the share price has since plunged from US$0.80 to US$0.50. The stock was traded as high as US$1.41 in June.
Vickers Ballas has a more benign Neutral rating for the stock (Oct 9 report), forecasting EPS of S$0.058 which translates into 17.6x FY99 earnings. VB however forecasted a 40% and 30% earnings growth for FY00 and FY01.
Hutchinson’s poor results serve as a warning to Magnecomp’s shareholders that the short term outlook for suspension drives is still hazy. What is not clear is whether Magnecomp can make up by gaining more market share at the expense of Hutchinson.
Magnecomp rebounded 20% on higher volumes last week. It ended at US$0.61 on Friday and according to charts there may be some resistance at this level. Next resistances are at 70 and 80 US cents and support is at US$0.50.
I have no vested interest in Magnecomp.
|(Post 7 of 614) 02/14/2000.10:05:00|
||Does anyone know why this stock is flying today?|
|(Post 8 of 614) 02/15/2000.00:57:00|
|| i had news when itz was trading ard 80+ cents... from my dad'z frenz though... dun really trust him.. haha... dun exactly know what it is about but heard itz gonna be suspended or something... but his frenz cleared their holdings already... :)
now they are loading TCIL...
own risk pls...
no vested interest in both...
|(Post 9 of 614) 02/15/2000.11:43:00|
|| Business Times COMPANY Briefs 15/2/00
Magnecomp in talks but no pact yet
MAGNECOMP International has replied to the Singapore Exchange, saying that its directors are not aware of any material information or circumstances which could have led to the sharp increase in price and trading volume of the company's shares yesterday except for a certain negotiation in which the company has not reached an agreement in principle. The company said it will make an immediate announcement, when necessary. Magnecomp yesterday shot up 14.5 cents or 15 per cent to $1.11 on a volume of 2.19 million shares.
|(Post 10 of 614) 02/16/2000.05:11:00|
||MAGNECOMP INTERNATIONAL LIMITED
The Board of Directors of Magnecomp International Limited ("Magnecomp") wish to clarify that as part of its overall group strategy, Magnecomp will explore opportunities for growth through acquisitions, joint ventures and strategic investments. Currently, Magnecomp is in discussion with a party to form a joint-venture company that could potentially enhance its core-business. Magnecomp will make further announcements if and when an in-principle agreement is reached.
Save for the above, the Directors are not aware of any material reasons for the recent increase in trading volume and price of Magnecomp's shares.
Submitted by Wesley Burkhart, Director on 15/02/2000 to the SES
|(Post 11 of 614) 02/17/2000.15:35:00|
|| Vickers Ballas has just issued a visit note on
Magnecomp International Ltd. The disk drive industry has bottomed and Vickers is projecting a 34% rise in unit shipment growth in suspensions from Magnecomp for this year. It has revised upwards its net profit figures for FY99-01. With these revisions, The stock is trading at forward PERs of 11.3 times FY00 earnings and 8.9
times FY01 earnings. Vickers has also upgraded Its recommendation from NEUTRAL to WEAK OUTPERFORM. Nevertheless, it is recommending that clients buy on price weakness. It has set a near-term target of SGD1.42 and a
> 12-month price target of SGD1.80.
|(Post 12 of 614) 02/25/2000.17:09:00|
||MAGNECOMP INTERNATIONAL LIMITED
The Board of Directors of Magnecomp International Limited (the Company) is pleased to announce that the Company has on 24 February 2000 entered into a Memorandum of Understanding with SAE Magnetics (HK) Ltd, ("SAE") a wholly owned subsidiary of TDK Corporation ("TDK") of Japan to establish a joint venture company ("JV") in Hong Kong.
The objective of the JV is to develop value added suspension assemblies. Value added suspensions involve the addition of electronic components onto conventional suspensions to form electro-mechanical devices. This allows more efficient and cost effective data storage on magnetic disks in disk drives. The JV will be housed in the new plant facilities owned by Magnecomp Technology Ltd. in Changan, China. The JV company will be 51 % owned by the Magnecomp Group and 49 % owned by SAE/TDK.
SAE is one of the largest independent Original Equipment Manufacturers ("OEM") of Head Gimbals Assemblies ("HGA") and Head Stack Assemblies ("HSA") in the world. Its holding company, TDK, is one of the world's largest and most advanced magnetic head manufacturers with net assets in excess of US $ 5 billion as at 31 March 1999.
Through the JV, the Magnecomp Group and SAE will be able to combine their respective strengths in suspension assembly and HGA/HSA technology. This will allow joint development and production of a larger volume of value added suspension assemblies at a more competitive price to better serve the needs of SAE and disk drive customers.
SAE is currently one of the Group's major customers. By entering into a closer long term partnership with SAE, the Magnecomp Group should achieve a higher volume of sales at a lower capital cost, be better positioned with customers relative to advanced products, and reduce process steps allowing a lower cost structure.
It is intended that SAE will provide the process development technology and resources to the JV thereby facilitating the development and qualifying process. This will significantly reduce the time and resources required of the Magnecomp Group if it has to pursue the development and production on its own.
The directors expect the proposed JV to contribute positively to the Magnecomp Group. For the current financial year, however, the JV is not expected to have any material impact on the earnings per share and the net tangible assets per share of the Company nor the Group.
None of the directors or substantial shareholders has any interest, direct or indirect, in the SAE or TDK.
The Company will make further appropriate announcements at such times, if and when the Company enters into definitive JV agreement.
Submitted by Yvonne Choo, Company Secretary on 25/02/2000 to the SES
|(Post 13 of 614) 03/16/2000.06:15:00|
||Magnecomp International 1999 net profit 14.730 mln sgd vs 24.205
Magnecomp International Ltd 1999 results:
Net profit - 14.730 mln sgd vs 24.205 mln
Sales - 114.536 mln sgd vs 130.307 mln
Opg profit - 26.024 mln sgd vs 33.061 mln
EPS - 7.4 cents vs 12.1 cents
Final div - 0.5 cents, unchanged
In a statement releasing its results, the company said the group expects its results in 2000 to be satisfactory.
It said demand for suspension assemblies will continue to be subject to the volatility and cyclical nature of the global disk drive industry.
Stamped components, value-added assembly and commercial tooling continues to be a stable and to represent a growing segment of the group's business, it added.
Magnecomp attributed the drop in its 1999 turnover to one of its customers having its own partial in-house suspension manufacturing operations.
The customer concerned discontinued the operations in mid-1999, the statement added.
|(Post 14 of 614) 03/22/2000.07:41:00|
||MAGNECOMP INTERNATIONAL LIMITED
21 March 2000
The Listing Manager
Singapore Exchange Limited
20 Cecil Street #26-00
FULL YEAR RESULTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 1999 ("FULL YEAR RESULTS")
We refer to your letter dated 20 March 2000 on the above.
We provide below further information on the following matters:
(1) Review of Performance for the year ended 31 December 1999
The Group operating profit before interest, depreciation and tax declined by 21.3% although turnover only decreased by 12.1%, as operating margin for suspension assemblies fell from 26.8% in 1998 to 16.6% in 1999. The decline in operating margin was due to lower volumes of suspension assemblies shipped and the related fixed overheads.
(2) Prospects for year 2000
The directors are confident that the Group is well positioned to meet the challenges ahead and expect the current year results to show satisfactory improvement over 1999.
Submitted by Wesley Burkhart, Director on 21/03/2000 to the SES
|(Post 15 of 614) 04/14/2000.03:12:00|
|| directors buying back shares,
good news about joint venture with the US...this friday
|(Post 16 of 614) 04/25/2000.16:47:00|
|| [Dow Jones] SINGAPORE: Magnecomp International
up 8.7% to $1.00 on talk it's likely to announce acquisition of company that provides
business-to-business engine or JV to strengthen tooling operations for its metal stamping unit. Company will hold an analyst briefing at 1700hrs.
|(Post 17 of 614) 04/26/2000.05:09:00|
||Magnecomp unit, Scarborough in jv to set up factory in China
SINGAPORE (AFX-ASIA) - Magnecomp International Ltd said its subsidiary, Mansfield Manufacturing Co Ltd, has entered into a memorandum of understanding with Scarborough (HK) Ltd to set up a joint-venture company in Hong Kong that will manufacture high-end value-added precision tools and dies.
In a statement, the company said the joint-venture will be located in Changan, Dongguan in China.
Mansfield and Scarborough will each have a 50 pct stake in the venture.
However, the board of the joint-venture company will be majority controlled by Mansfield, Magnecomp said.
Scarborough is a precision engineering company with an annual turnover of 30 mln usd.
|(Post 18 of 614) 04/26/2000.05:10:00|
||Magnecomp to buy stakes in ICX Electronics
SINGAPORE (AFX-ASIA) - Magnecomp International Ltd said it has entered into a share purchase agreement with ICX Electronics.com to take up stakes in ICX.
In a statement, the company said it will initially buy 250,000 new preferred shares in ICX for 4.0 usd per share for a total of 1 mln usd.
On completion of a placement of up to 200,000 preferred shares in ICX for not less than 1 mln usd to third parties, Magnecomp will buy an additional 175,000 preferred shares, also at 4.0 usd per share for 700,000 usd.
Magnecomp also has the option to buy 250,000 preferred shares at 4.0 mln usd per share for a total of 1 mln usd following the filing of registration for flotation and a further 250,000 preferred shares, also for 1 mln usd, upon the approval for the flotation by the relevant exchanges.
The preferred share of ICX is convertible into ICX common stocks on a one-for-one basis without further consideration, the company said.
Assuming the exercise of the option, Magnecomp will own 925,000 preferred shares of ICX representing a 27 pct stake in ICX on a fully-diluted basis.
Magnecomp said ICX plans to expand its operations to Asia under a new company to be incorporated, in which Magnecomp is entitled to subscribe for 40 pct of the new company for 300,000 usd.
ICX is a business-to-business electronics component exchange company, and specialises in filling its customers' electronic component shortages and selling customers' excess components in the open market.
|(Post 19 of 614) 05/16/2000.09:25:00|
|| Daiwa visit note to Magnecomp in March
Highlights of the meeting with CEO Wes Burkhart.
* Magnecomp shipped 64.8m suspensions (including 1m wireless suspension) in 2H99 which is in line with our expectations.
* Business has improved 1Q00 is going well and will ship 35-40m suspensions. 4Q99 magnecomp shipped 36m suspensions and 1Q99 it shipped only 14.7m suspensions. In FY00 Magnecomp may ship 140m suspensions vs 100m in FY99 and 25-30% will be wireless suspensions. In our earlier forecast we have assumed 126m suspensions for FY00, therefore chances of upward earnings revision in FY00 is high.
* Value added metal-stamping business is doing well. Main customers are Japanese office equipment manufacturers. Management has plan to position this business as mechanical subsystem assembly company and is working on that line.
* Magnecomp took 35% stake in a start-up software company in the US whose major back-room operations are in India. This company provide B2B e-commerce solutions and maintain IBM mainframe systems. The company will break-even in year 2000 and may subsequently go for listing in FY01.
Rational of the investment is 1) to bring software expertise to Magnecomp to develop high-end product and 2) possible investment gain. At this point we have not got enough data to value this company.
*With this positive news flow-specially good news from software investment may boost share price. At current price the stock is trading at FY99 PER of 17.8X and FY00 PER of
13.0X. Our current recomandation is hold. We will change our recommendation only after doing some research on the sftware company in India. It appears to me that the cmpany is doing only off-shore coding.
|(Post 20 of 614) 05/24/2000.04:21:00|
||Increase of Shareholdings in Mansfield Manufacturing Company Limited
The Board of Directors of Magnecomp International Limited ("the Company") is pleased to announce that Mr Kwok Wai Keung former executive director of Mansfield has exercised his option to take up 1,179,928 shares in the Company. Under the terms of the Option Agreement dated 15 December 1997, the Company, is required to take up 5,915 shares of HK$1.00 each in the capital of its subsidiary, Mansfield Manufacturing Company Limited ("Mansfield"), in exchange for the shares issued to Mr Kwok Wai Keung. With this exercise, the percentage of the Company's shareholding in Mansfield increased from 78.72% to 83.33.%.
Submitted by Wesley H. Burkhart, Director on 23/05/2000 to the SES
|(Post 21 of 614) 05/27/2000.05:15:00|
||Magnecomp unit, First Ease form Hong Kong jv
SINGAPORE (AFX-ASIA) - Magnecomp Internatonal Ltd unit Mansfield Manufacturing Co Ltd said it and First Ease Engineering Ltd have formed a joint venture in Hong Kong to make precision tools and dies.
The 50-50 joint venture will have an authorised capital of 10 mln hkd, of which 2.0 mln hkd will be paid up.
The board will be controlled by Mansfield, it said.
First Ease is a wholly-owned unit of Scarborough (HK) Ltd.
Magnecomp closed down 0.07 at 0.77 sgd on 133,000 shares.
AFN BBI94-26May00 10:06 GMT
AFX ; ASIA ;
|(Post 22 of 614) 03/30/2001.18:53:37|
|| hi there
vol for magnecomp is picking out, when TA is concern is already trading out of a falling wedge.
sorry for unable to a post a chart, maybe some others TA experts can help.
worth taking a close look.
|(Post 23 of 614) 07/17/2000.19:34:00|
|| To Gchan,
Are you who I think you are?
From university days....
|(Post 24 of 614) 07/17/2000.23:16:00|
|| to wwhong or whwong
wonder is your wwhong or whwong or is there a typo error.
i am sorry that i dun think we know each other, your name is not familiar to me. but something puzzle me, what makes u think that u know me, juz from the few words of posting below....maybe u missed your friend but sorry have to disppoint u. btw, is your friend of yours a male or a female, for your info, i am a female.
anyway, best regards to u in this cyberworld.
|(Post 25 of 614) 07/17/2000.23:48:00|
|| I am whwong....The G I know stands for a four letter name. The friend(a lady) I know works in the financial field, and I know this quiet counter is of interest to mainly people in the financial field(hence your name rang a bell) and this G had appeared on a CNBC program before. I myself aint in the financial field, though. However I am a great follower of this stock and I know a lot of retailers have been squeezed out. I am looking forward to great fin results from this company. I havent been in touch with G since U, though my wife had bumped into her a couple of times in raffles place.
If the G I know has interest in this counter, then this baby got hope man.
|(Post 26 of 614) 08/31/2000.18:19:00|
|| Review of the performance of the company and its principal subsidiaries
Compared to the same period last year, Group turnover for the first half year was S$72.8 million, an increase of S$27.4 million or 60.5%. The improvement was due mainly to higher volumes of suspension assemblies shipped - from 35 million units to 56 million units (which accounted for S$19.8 million) and increased sales of stamped components, value added assemblies and commercial tooling (which accounted for S$7.6 million).
Group operating profit before tax was S$9.4 million, an increase of S$5.6 million or 151%. The increased profitability came largely from increased margins and contribution from the Suspensions division (S$4.1 million) and the Stamped Components and Assemblies division (S$1.5 million).
The Suspension division saw better utilisation of production capacity and a more favourable sales mix with 6 million wireless suspension assembly units shipped in the first half year, compared to none in the corresponding period last year. Todate Magnecomp is qualified to produce volume wireless suspensions for Maxtor and Western Digital.
Higher sales of commercial tooling and assemblies of stamped components as well as improved margins from stamped components contributed positively to the increase in margins and operating profit of the division.
Profit before tax at Company level increased by a S$6.4 million due to receipt of a dividend of S$4.9 million from a subsidiary, higher management fees and a foreign exchange gain.
Commentary on current year prospects
The demand for suspension assemblies will continue to be soft as the global disk drive industry is still experiencing some demand/supply imbalance, though signs of improvement are evident. This combined with a change in product more heavily weighted towards wireless suspensions, is expected to enhance overall sales performance for the year. Anticipated competitive pressures, however, may partially offset this growth.
Sales of stamped components, value added assemblies and commercial tooling are expected to continue to improve although with some pressure on margin.
Notwithstanding competition and pricing pressure, the Directors expect turnover to show satisfactory improvement in the 2nd half year and the full year results to be better than that of the previous year.
|(Post 27 of 614) 09/01/2000.02:21:00|
||Magnecomp International H1 net profit 8.974 mln sgd vs 4.397
SINGAPORE (AFX-ASIA) - Magnecomp International Ltd six months to June results:
Net profit - 8.974 mln sgd vs 4.397 mln
Sales - 72.786 mln sgd vs 45.342 mln
EPS - 4.5 cents vs 2.2
Interim div - nil, unchanged
In a statement, Magnecomp said it expects sales to show "satisfactory improvement" in the second half despite stiff competition and pricing pressure.
"Full-year results (will) be higher than that of the previous year," it added.
Magnecomp closed down 0.01 sgd at 0.90 on 229,000 shares.
|(Post 28 of 614) 09/02/2000.01:04:00|
||STOCKWATCH: Magnecomp slightly higher after H1 results
SINGAPORE (AFX-ASIA) - Shares of disk drive component market Magnecomp International were slightly higher in early afternoon trade after the company posted interim results that were in line with expectations, dealers said.
Magnecomp said after market close yesterday that its net profit rose to 8. 974 mln sgd in the first half to June from 4.397 mln sgd a year earlier.
Barra Global Estimates' consensus net profit estimate for Magnecomp in full year 2000 is 20.20 mln sgd, compared with 13.70 mln sgd in 1999.
An analyst with a foreign brokerage said he still expects Magnecomp to meet his full year net profit estimate of 20 mln sgd, even though profit growth in the secopnd half will not be as strong as in the first, given the higher base figure in the second half of 1999.
The company's earnings will be supported by continued strong contributions from Western Digital and Seagate, he said. Magnecomp supplies suspension assemblies to disk drive makers.
Conversely, Magnecomp's first half results were sharply higher than a year earlier because it briefly stopped producing for Seagate in the first half of 1999, depressing the base profit figure. Seagate production resumed in the second half of 1999, the analyst said.
He said he has a fair value of 1.50 sgd per share for Magnecomp but he does not expect the stock to trade near that level given the prevailing weak sentiment on disk drive related stocks.
"I think people want to see the company diversify its earnings base first, " he said.
At 2:16 pm, Magnecomp was up 0.005 at 0.905 sgd on 33,000 shares.
The Straits Times index was up 12.95 points at 2,160.72.
|(Post 29 of 614) 09/08/2000.02:21:00|
||Magnecomp unit, Hong Kong Yagi Co in jv to assemble office equipment
SINGAPORE (AFX-ASIA) - Magnecomp International Ltd said its unit Mansfield Manufacturing Co Ltd and Yagi Kinzuko Co Ltd unit Hong Kong Yagi Co Ltd have agreed to establish a joint venture company.
The joint venture company will set up a manufacturing facility in Dongguan, China to assemble multifunction office equipment capable of scanning, faxing, printing and copying for an original equipment manufacturer customer.
The facility is expected to start commercial operations in the third quarter of 2001.
The joint venture company, which will have an initial paid-up capital of 10 mln hkd, will be owned 40 pct by Hong Kong Yagi Co and 60 pct by Mansfield, which has committed to invest 3.0 mln sgd in the joint venture over the next two years.
|(Post 30 of 614) 09/08/2000.05:41:00|
||JOINT VENTURE BETWEEN MANSFIELD MANUFACTURING CO., LTD. AND HONG KONG YAGI CO., LTD
The Board of Directors of Magnecomp International Limited ("the Company") is pleased to announce that Mansfield Manufacturing Co., Ltd ("Mansfield"), a subsidiary of the Company has, on 7 September 2000, entered into an agreement with Hong Kong Yagi Co., Ltd. ("Yagi HK"), a subsidiary of Yagi Kinzoku Co., Ltd. of Japan ("Yagi Japan"), to establish a joint venture ("JV") company in Hong Kong.
The objective of the JV is to assemble multifunction office equipment which include features such as scanning, faxing, printing, copying for Original Equipment Manufacturers ("OEM").
The JV plant will be located in Tang Xia, Dongguan, China with an initial production area of 18,000 sq. meters. The operations are expected to commence in the third quarter of 2001. The initial paid-up capital of the JV will be HK$10 million (approximately S$2.2 million) with Mansfield and Yagi HK owning 60% and 40% respectively. In addition, Mansfield has agreed to invest approximately S$3 million over the next 2 years in the JV. The investment will be financed through bank borrowings and internal funds.
Established in 1956, Yagi Japan has two assembly plants in Japan and is presently one of the major assembly houses for multifunction office equipment for OEM in Japan. Through the JV, Mansfield and Yagi HK will be able to combine their respective strengths in tool and die making, precision stamped components and assembly know-how to establish a-state-of-the-art assembly process at competitive prices to better serve the needs of OEM customers. With many of the world's largest OEM of multifunctional devices manufacturers relocating to China, the JV will be well positioned to benefit from this expanding market. This, together with the combined customer base of Mansfield and Yagi Japan in South China, Europe, USA and Japan, is expected to significantly increase sales for the JV.
The Directors expect the JV to contribute positively to the performance of the Company although the contribution would not have a material impact on the earnings per share and the net tangible assets per share of the Company or the Group for the current financial year.
None of the Directors or substantial shareholders of the Company and Mansfield has any interest, direct or indirect, in Yagi HK and Yagi Japan.
Submitted by Yvonne Choo, Company Secretary on 07/09/2000 to the SGX
|(Post 31 of 614) 09/10/2000.01:55:25|
||DJ MARKET TALK/SG/KL: Magnecomp Flat Despite Unit's JV
Source : Dow Jones
[Dow Jones] SINGAPORE: Magnecomp International (M14) unchanged at S$0.89 though company announced unit Mansfield Manufacturing signed agreement with Hong Kong's Yagi to form joint venture in Hong Kong to assemble multi-function office equipment; JV, which will have initial paid-up capital of HK$10 million, should serve as good launch pad for Magnecomp into China market. (PUJ)
|(Post 32 of 614) 09/13/2000.15:53:19|
||From: Vicker Ballas
1 September 2000
1H Results above expectations, Recovery on track
Net earnings for the world's second largest manufacturer of suspension assemblies (component used in hard disk drives) rebounded to $8.9m, up 104% from the previous interim to 6/99.
The strong recovery was driven by a sharp 61% rebound in revenues to $73m. The revenues were also sequentially higher by 14% or up $6m from 2H99. EBITDA margins (net of the f/x gain of $2m) rose to 19.3% from 15.7% the prior year period, but was significantly below the 28% recorded in 2H99.
Although demand is still soft as a result of continued imbalance in the supply of disk drives, management notes that signs of improvement are evident. It also expects a higher proportion of wireless suspensions (about 11% of shipments in the first half) to boost overall revenues for the year.
We are trimming our full year expectation to $18.9m (from $20.4m previously) to take into account the anticipated margins pressure.The stock remains attractive at at single digit PE of 9.5x, moving down to 7.5% for next year.
|(Post 33 of 614) 09/16/2000.03:27:15|
||INVESTMENT IN ICX ELECTRONICS ASIA PTE LTD
Further to the announcement made on 25 April 2000, the Board of Directors of Magncomp International Limited (the 'Company') is pleased to announce that ICX Electronics.com (ICX) has incorporated a new subsidiary, ICX Electronics Asia Pte Ltd (ICXE). The authorised share capital of ICXE is $1,000,000 and the paid-up capital will be 10,000 ordinary shares of $1.00 each. The Company will subscribe for 4,000 ordinary shares of $1.00 each at a consideration of US$300,000 (S$516,000) representing 40% equity in ICXE. The balance of the 60% in ICXE will be held by ICX. The Board of Directors of ICXE are Gary E. Lotzer and Wesley H. Burkhart.
The Directors expect the proposed investment to contribute positively to the performance of the Company and its subsidiaries (Group). For the current financial year, however, this strategic investment is not expected to have any material impact on the earnings per share and the net tangible assets per share of the Group.
None of the Directors or substantial shareholders has any interest, direct or indirect, in ICXE.
Submitted by Yvonne Choo, Company Secretary on 15/09/2000 to the SGX
|(Post 34 of 614) 09/21/2000.00:57:05|
||DJ TDK In JV To Make Magnetic Head Suspension Pdts In China
Source : Dow Jones
TOKYO (Dow Jones)--TDK Corp. (J.TDK or 6762) said Wednesday its Hong Kong subsidiary has set up a joint venture in Hong Kong with Singapore's Magnecomp International Ltd. (P.MCI) to manufacture suspension products for magnetic heads in disc drives in China.
The joint venture, Optimal Technology Ltd. is capitalized at HK$50 million. Magnecomp holds a 51% stake in the new company, while TDK's subsidiary SAE Magnetics (H.K.) Ltd. has the remaining 49% stake.
Optimal Technology plans to open a new plant to make high performance suspension products in China by the end of this year, TDK said.
The suspension products will have electronic devices attached to improve efficiency of storage performance in magnetic disc drives, TDK said.
|(Post 35 of 614) 09/21/2000.04:32:57|
||JOINT VENTURE WITH SAE MAGNETICS (HK) LTD
Further to the announcement released by the Company on 24 February 2000, the Directors of Magnecomp International Limited (the "Company") is pleased to announce that the definitive agreement in respect of the joint venture ("JV") between the Company and SAE Magnetics (HK) Ltd ("SAE"), a wholly owned subsidiary of TDK Corporation ("TDK") of Japan was signed on 19 September 2000.
The objective of the JV is to develop value added suspension assemblies. Value added suspensions involve the addition of electronic components onto conventional suspensions to form electro-mechanical devices. This allows more efficient and cost effective data storage on magnetic disks in disk drives.
The JV, to be named Optimal Technology Ltd ("Optimal"), will have its plant located in Conrad Industrial Park, Changan, China.The operations are expected to commence in the last quarter of this year. The initial paid up capital of Optimal will be HK $ 50 million (approximately S $ 11 million) with Magnecomp Technology Limited (a wholly-owned subsidiary of the Company) and SAE owning 51 % and 49 % respectively. The investment will be funded through internal funds.
SAE is the largest independent Original Equipment Manufacturer("OEM") of Head Gimbal Assemblies ("HGA") and Head Stack Assemblies ("HSA") in the world. Its holding company, TDK, is one of the world's largest and most advanced magnetic data storage component manufacturers.
Through Optimal, the Company and its subsidiaries ("the Group") and SAE will be able to combine their respective strengths in suspension assembly and HGA/HSA technology. This will allow joint development and production of a larger volume of value added suspension assemblies at a more competitive price to better serve the needs of SAE and disk drive customers.
SAE is currently one of the Group's major customers. By entering into a closer long term partnership with SAE, the Group should achieve a higher volume of sales at a lower capital cost, be better positioned with customers relative to advanced products, and reduce process steps allowing a lower cost structure.
It is intended that SAE will provide the process development technology and resources to Optimal thereby facilitating the development and qualifying process. This will significantly reduce the time and resources required of the Group if it has to pursue the development and production on its own.
The directors expect Optimal to contribute positively to the Group. For the current financial year, however, Optimal is not expected to have any material impact on the earnings per share and the net tangible assets per share of the Company or the Group.
None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in SAE, TDK or the joint venture.
BY ORDER OF THE BOARD
Submitted by Loh Shu Chun, Company Secretary on 20/09/2000 to the SGX
|(Post 36 of 614) 09/28/2000.02:21:15|
||Magnecomp accused of patent infringement by Hutchison Technology
SINGAPORE (AFX-ASIA) - Magnecomp International Ltd said Hutchison Technology Inc, a NASDAQ-listed company, has commenced legal proceedings against it company alleging that Magnecomp has infringed on Hutchison Technology's patents on certain diskdrive suspension assemblies.
"Magnecomp firmly believes that the suit is without merit and denies any liability infringement of Hutchison Technology's patents. Magnecomp has referred the claim to its attorneys to mount a vigorous defence while pursuing possible counterclaims," it said.
Magnecomp said its has 28 U.S. patents, with 50 patent applications pending.
It also has cross-licensing arrangements with IBM Corp, which allows it access to a broad range of technologies, it said.
|(Post 37 of 614) 09/28/2000.03:51:56|
The Directors of Magnecomp International Limited ("Magnecomp") would like to announce that on 18 September 2000, Hutchinson Technology Incorporated ("HTI"), a Nasdaq listed company, commenced legal proceedings against Magnecomp in the United States District Court for the District of Minnesota. In these proceedings HTI is alleging that Magnecomp has infringed HTI's US patents relating to the design and manufacture of certain suspension assemblies.
Magnecomp firmly believes the suit is without merit and denies any liability for infringement of HTI patents. Magnecomp has referred the claim to its attorneys to mount a vigorous defence while pursuing possible counterclaims against HTI. Magnecomp is among the world's leading suppliers of suspension assemblies for disk drives and, through its subsidiary Magnecomp Corporation, has 28 US patents issued or allowed with more than 50 other patent applications pending. Additionally Magnecomp has cross-licensing arrangements with IBM allowing Magnecomp access to a broad range of technologies.
Submitted by Yvonne Choo, Company Secretary on 27/09/2000 to the SGX
|(Post 38 of 614) 10/14/2000.00:36:37|
||Magnecomp unit files counter suit against Hutchinson Technology
SINGAPORE (AFX-ASIA) - Magnecomp International Ltd said unit Magnecomp Corp has filed a counter suit in the U.S. against NASDAQ-listed Hutchinson Technology Inc for alleged patent infringements, antitrust violations and unfair competitive actions.
The lawsuit comprises 11 claims against Hutchinson, a manufacturer of suspension assemblies for the disk drive industry. Hutchinson had earlier filed a patent infringement suit against Magnecomp.
Magnecomp said in a statement four patent infringement claims relate to suspension assemblies used by Hutchinson while the remaining claims relate to allegations that Hutchinson had "illegally restrained trade (and) attempted to monopolize the relevant market."
"Magnecomp took this action to protect its valuable intellectual property rights and to protect its right to compete fairly in the marketplace," Magnecomp chief executive and chairman Wesley Burkhart said.
A Magnecomp official said the earlier suit by Hutchinson is still ongoing.
Magnecomp and Hutchinson have the same customers in the hard disk drive industry, such as Seagate and Maxtor.
|(Post 39 of 614) 10/14/2000.01:38:54|
The Directors of Magnecomp International Limited ("Magnecomp") would like to announce that on October 12, 2000 Magnecomp Corporation, a subsidiary company of Magnecomp, filed a lawsuit in the United States District Court for the Central District of California against Hutchinson Technology Incorporated ("HTI"), a Minnesota based, Nasdaq-listed company. The suit consists of eleven claims against HTI. Magnecomp Corporation's complaint alleges four counts of patent infringement against numerous HTI suspension assemblies, four counts of federal and state antitrust violations and three counts of California state law contractual interference and unfair competition.
The patent infringement claims apply to a broad range of HTI products, most notably wireless TSA suspensions, ramp loadable suspensions and suspensions utilizing flexure motion limiters. The antitrust claims allege that HTI has illegally restrained trade, attempted to monopolize and has monopolized the relevant market.
Magnecomp Corporation took this action to protect its valuable intellectual property rights and to protect its right to compete fairly in the marketplace as its customers deserve the improved products and economies that fair competition provides.
By Order of the Board
Submitted by Yvonne Choo, Company Secretary on 13/10/2000 to the SGX
|(Post 40 of 614) 02/11/2001.17:17:45|
As there has not been much update or dicussion on Magnecomp since Oct 2000, I thought I'd post some reports on one of its competitors to highlight the shifting fortunes (hopefylly improving?) of its industry.
Got this report from one of my thai brokers, where K.R. Precision Plc is listed. I post relevant extracts here:
KRP recorded an operating profit of Bt17m for 4Q00. This was only the second quarter since 4Q97 in which KRP posted a profit - the first in 2Q99 was for Bt10m. Last year KRP recorded a loss from operations of Bt180m, compared with a loss of Bt509m in 1999.
Sales revenue soared by 541% and 89% y-o-y for 4Q00 and 2000 respectively. The company sold approximately 17m suspension assembly units in 4Q00, a drop of 19% q-o-q, but an increase of about 467% y-o-y. Lower unit sales q-o-q was a result of weakening demand in the PC industry worldwide from late last year.
Average product prices improved by 29% q-o-q and 2% y-o-y to US$0.55 per unit. This came as quite a surprise, but the company explained that in 4Q00 it sold more wireless suspension units and these carried a higher price.
KRP shipped 63.2m suspension units in 2000 with an average price per piece of US$0.46. This represented a growth rate of 77% in unit terms and a 1% increase in the y-o-y price.
Unfortunately, KRP has only one main customer, Seagate Technology, we believe its outlook remains unfavorable although it has redoubled efforts to win new customers and invest in new machinery.
Hmmm....wonder what impact such strong growth numbers spells for Magnecomp, the world's #2 largest player of suspension assemblies? Anyone care to comment?
|(Post 41 of 614) 02/12/2001.17:36:55|
||INVESTMENT IN US TECHNOLOGY RESOURCES LLC
The Directors of Magnecomp International Limited (the "Company") wish to announce that US Technology Resources LLC ("USTR"), a company incorporated in the U.S.A. and in which the Company had invested US$450,000 for a 35% share of the issued share capital, has entered into an agreement with Tricase Holding S A ("Tricase"). Pursuant to this agreement, Tricase will invest in USTR on the following terms (the "Investment"):-
1. Tricase will subscribe for an aggregate of 2,500,000 new ordinary shares (the "New Shares") at a total issue price of US$750,000 or US$0.30 per share; and
2. Tricase will extend a loan of US$3,000,000 (the "Loan") to USTR with interest of 10% per annum. The loan is repayable on or before 31 December 2001.
Tradable warrants in the aggregate amount of 5,000,000 new shares will be attached to the Loan. The warrants are exercisable on 31 December 2001 at an exercise price of US$0.20 per new share.Following the issue of the New Shares to Tricase, the Company's interest in USTR will be diluted from 35% to 28%. Upon exercise of the Warrant by Tricase, the Company's interest will be further diluted to 20%.
Mr Gopala Achuta Menon, a Director of the Company and USTR, is also the President of Multitech System Ltd Inc., a subsidiary of Tricase.
Save for as described above, none of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the Investment.
Submitted by Loh Shu Chun, Company Secretary on 12/02/2001
|(Post 42 of 614) 02/12/2001.20:43:10|
||Hmmm...what is this deal with outside shareholder all about?
It looks like someone has agreed to invest US$1.75 mil in Magnecomp unit, $750k initially in equity & further US$1mil when warrants are exercised. They will also lend US$3mil in loan, but will only get a minority stake therein? What gives?.
Magnecomp's holding will shrink from 35% to 20%. However, the value of the smaller stake will have improved dramatically! Magnecomp padi just US$450k for its initial 35% stake, capitalising the unit at $1.285 mil. Now the outside party Tricase, will plunk down US$1.75 mil
and cause a 15% dilution of Magnecomp's stake. That means the new capitalisation has risen to US$11.67mil, and Magnecomp's 20% value has risen to US$2.334mil from $450k previously.
Am I correct? More importantly, what is this company US TECHNOLOGY RESOURCES LLC all about. Is it listed? If not, how come the warrants are tradeable?
Appreciate some feedback if anyone knows something.
|(Post 43 of 614) 02/12/2001.22:24:12|
||Magnecomp's stake in U.S. Technology falls to 28 pct on new investor entry
Source : AFX SINGAPORE 20:44 12/02/2001
SINGAPORE (AFX-ASIA) - Magnecomp International Ltd said its equity in U. S. Technology Resources LLC will fall to 28 pct from 35 pct following the entry of new investor Tricase Holdings SA.
Tricase will subscribe to 2.5 mln new U.S. Technology shares at 0.30 sgd per share. It will also provide 3.0 mln usd in loans to U.S. Technology payable by end-2001.
Tradable warrants are attached to the loan. The warrants could be converted to 5.0 mln shares once they expire on December 2001 at an exercise price of 0.20 usd per share.
Magnecomp said its U.S. Technology equity should fall to 20 pct if Tricase exercises its right to convert the warrants.
Magnecomp closed up 0.01 sgd at 0.75.
|(Post 44 of 614) 02/15/2001.00:52:58|
||Unable to get much direct information on Magnecomp from local broking sourcing, but judging by the strong growth in sales volumes posted by Thailand's KR Precision, the #4 player, their outlook must have been improving too. The following comments are based on information gathered from research reports by Vickers Nava of Thailand.
There are currently four major suspension producers in the world. They are Hutchinson Technology (symbol HTCH), Magnecomp, NHK of Japan(unlisted), and KR Precision. KRP saw its market share tumble sharply from about 12% in 1997 to as low as 4% in 1999 when the company faced financial problems (the banks cut working capital lines) and deteriorating relationship with its clients.
Equally, the #1 player Hutchinson has also lost market space (it reported losses in recent quarters) and this was gained by the #2 player, Magnecomp. The reason for their growth is new applications for HDDs (and hence suspension assemblies) and its design capabilities with many Japanese and overseas partners.
The global PC industry, the key market for hard disk drives, is now growing at about 15% yearly. Apart from the computer industry, the potential for use of disk drives and hence demand for suspension assemblies in non-PC applications is rising sharply. New applications arise in the consumer electronics arena like digital video recorders, set top boxes for downloading movies from the internet, and gaming devices.
These new applications should sustain healthy unit growth for the hard disk drive industry and suspension assembly producers like Magnecomp. In late 2000, Seagate Technology was picked as a strategic supplier of hard drives for Microsoft's future generation Xbox video game console due to be sold in retail stores in fall 2001. This is certainly good news for Magnecomp as one of Seagate's suppliers of
Hope this is useful?
|(Post 45 of 614) 02/19/2001.14:15:37|
||For info. Good for Magnecomp, as rising HDD and storage requirements means more suspension assemblies to run the devices?!
SEAGATE EXPECTS HDD SALES TO INCREASE AS DEMAND INCREASES FOR
VIDEO-ON-DEMAND AND DIGITAL MUSIC APPLICATIONS
Comments made by Robert Pait, a sales & marketing manager at
* Expects exponential growth in consumer electronics industry.
* Predicting HDD sales for consumer electronics to increase to half
of personal storage product sales by 2007.
* Hopes that the Testing & Design Center in Colorado will help win
new customers - especially those who may not be familiar with HDD
|(Post 46 of 614) 02/21/2001.10:02:05|
||This is good news for Magnecomp, which supplies suspension assemblies to the HDD industry
++ SINGAPORE HDD EXPORTS INCREASE 8% YEAR OVER YEAR IN JANUARY
-- HDD exports increased to S$1.126 billion in January (US$1=S$1.74)
-- December 2000 exports = S$1.415 billion
-- November 2000 exports = S$1.385 billion
-- October 2000 exports = S$1.253 billion
-- This is the 3rd month of year over year increases in a row
|(Post 47 of 614) 03/10/2001.21:26:47|
||To all shareholders: Heard that they will release their results on this coming Thursday, 15 March 2001.|
|(Post 48 of 614) 03/15/2001.18:56:08|
||MAGNECOMP INTERNATIONAL LIMITED POSTED $17.5 MILLION IN NET PROFIT - 17% INCREASE OVER PREVIOUS YEAR
SINGAPORE: 15 MARCH 2001 - Magnecomp International Limited's net profit after tax before deducting minority interests increased by 17% to reach $17.5 million for the year ended 31 December 2000 compared to $15.0 million for the previous year. The increase was due largely to higher sales from the commercial tooling and component stamping division. The strengthening of the US dollars also contributed to the net profit as billings for the Group are done in US$. As a result of higher product development expenditure, declining margins in sale of suspension assemblies and legal expenses, profit margin by percentage did not improve in the same proportion as turnover.
Group turnover for the financial year ended 31 December 2000 increased by 45% from $114.5 million for the previous year to reach $165.8 million. This was achieved largely through higher shipments of wireless suspension assemblies and increased sales of commercial toolings and stamped components.
Mr Wesley Burkhart, Chairman & CEO of Magnecomp International Limited said, "Our results are commendable in view of the pricing pressure experienced in the hard disk drive industry especially in the second half of last year. We are able to maintain our costs and increase productivity to remain competitive".
Suspension assemblies accounted for 69% of Group's total turnover and 79% of profit before interest and taxation for the financial year ended 31 December 2000 compared with 71% and 85% respectively for the previous year. Shipment for suspension assemblies increased from 101 million units for the previous year to 124 million units for the year ended 31 December 2000, an increase of 23 million units or 23%
The commercial tooling and stamped components division recorded a turnover of $51.1 million, an increase of $18.3 million or 56% from $32.8 million as compared to the previous year. This division also contributed 28.0% in Group's total profit before interest and taxation for the year ended 31 December 2000 as compared to 14% for the previous year.
NTA per share increased from 52.3 cents for previous financial year to 57.3 cents for financial year ended 31 December 2000.
The Group continues to face stiff competition in its businesses. The demand for suspension assemblies will continue to be soft with the current downturn of the global PC market which the global disk drive industry is heavily dependent on. There will be further pressure on the price margin in the wireless suspension assemblies. On the other hand, sales of stamped components, value added assemblies and commercial tooling are expected to improve. This will help to offset the pressure faced by the suspension assemblies division.
In spite of the expected slowdown in the U.S. economy and the weak demand for the global PC market, the Directors are confident that the Group is well positioned to meet the challenges ahead. Barring any unforeseen circumstances, the Directors expect the current financial year to continue to be profitable.
The Directors have recommended a first and final dividend of 0.5 cents per share (tax exempt), amounting to S$1,005,900 (1999: S$1,005,900).
Submitted by Loh Shu Chun, Company Secretary on 15/03/2001
|(Post 49 of 614) 03/17/2001.00:16:15|
||MEDIA RELEASE - MAGNECOMP INTERNATIONAL LIMITED ANNOUNCES THE APPOINTMENT OF PATRICK NGO AS ITS SENIOR VICE PRESIDENT OF OPERATIONS
SINGAPORE, 16 MARCH 2001 - Mainboard-listed Magnecomp International Limited announced the appointment of Mr Patrick Ngo as Senior Vice President of Operations to augment its management team.
In his role, Mr Patrick Ngo will have responsibility for directing Magnecomp's suspension manufacturing operations in Hong Kong, Dongguan, Changan and Thailand as well as Asia Pacific Sales, Materials and Quality.
Mr Ngo has more than 30 years of management and technical experience in the electronics and disk drive industries. Prior to joining Magnecomp, Mr Ngo was the Chief Operating Officer for ICX Electronics Asia. He was previously the President, Asian Operations for Maxtor Peripherals Pte Ltd, Vice President and Managing Director for Conner Peripherals Pte Ltd, and Vice President, Marketing for Natsteel Electronics Ltd.
Mr Wesley Burkhart, Chairman & CEO of Magnecomp International Limited said, "Mr Ngo brings with him strong managerial and advanced technical expertise. He will help us further strengthen and bring more focus to our suspension operations and help increase productivity and efficiency in the region".
Mr Ngo holds a Bachelor degree in Business Management from Northland University in Canada, a Master of Business Administration from Kensington University in England and has completed Manufacturing Management courses at Harvard University. He is a Fellow with the Institute of Administrative Management and with the Institute of Diagnostic Engineers and a Certified Member of the Association of Certified Accountants. He has published major articles and written books on Quality Management and has lectured on this subject to major U.S. and Asian companies.
Submitted by Loh Shu Chun, Company Secretary on 16/03/2001
|(Post 50 of 614) 03/17/2001.23:55:08|
||Research reproduced with permission from DMG
· FY00 results were modest but slightly below expectation of S$19m. Net profit grew 14% to S$17m on the back of a 45% sales growth and forex gains arising from strong USD. T
he improved sales were mainly due to higher volume of wireless suspension assemblies shipped - from 1.1m units to 9.2m units (accounting for S$13.0m) and increased sales of stamped components, value added assemblies and commercial tooling (accounting S$10.7m) in 2H00. For FY00, total shipment of suspension assemblies was 124m units, up 23% from FY99. Margins fell by about 2 percentage points, due to development expenditure.·
· Demand for suspension assemblies will remain soft with the downturn in the global PC market. Further margin pressure on the wireless suspension assemblies expected. However, sales of stamped components, value added assemblies and commercial tooling are expected to improve. This may offset the pressure faced by the suspension assemblies division. Magnecomp expects to remain profitable in FY01.
· Valuation at 8.5x FY01F earnings (EPS: 8.5cts) is undemanding but shrouded by sluggish market conditions in the disk drive sector. We maintain HOLD.
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