Public Announcement: This will be the last article covering Tai Sin Electric Limited (“TSE”) till further notice. The reason is due to its relatively small market capitalization, which may in turn lead to speculation and manipulation. Furthermore, investors with large stakes may find it difficult to exit their position given the relatively low liquidity.
On 14 February 2025, TSE have announced their half year result for FY2025. Their financial performance has been strong this half the year, generating more than sufficient earnings for their dividend payout. Their net asset value has also continued to increased and is trading at a discount to book value. This provides a stronger buffer for investors to have a peace of mind.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
Website: Financial Statements And Related Announcement::Half Yearly Results
Photo source: https://www.taisin.com.sg/about-us/
Financial Highlights
Revenue
| Metrics | Current | Previous |
|---|---|---|
| Revenue | +20.1% | -5.0% |
| Rating | Favorable | Unfavorable |
Revenue increased by 20.1% to SGD235 million compared to SGD195 million for the same period in the previous financial year. This metric shifted towards Favorable. The revenue increase was across all of the Group’s segments except for the Switchboard Segment.
Earnings per share
| Metrics | Current | Previous |
|---|---|---|
| Earnings per share | +130.0% | -12.4% |
| Rating | Favorable | Unfavorable |
Earnings per share increased by 130.0% to SGD0.0345 per share from SGD0.0150 per share. This metric shifted towards Favorable as well. The increase was due to the increase in gross profit, as other expenses remained relatively unchanged during this period.
Operating Cash Flows
| Metrics | Current | Previous |
|---|---|---|
| Operating Cash Flows | +293.6% | -85.6% |
| Rating | Favorable | Unfavorable |
Operating cash flows generated have increased by 293.6% to SGD7.2 million compared to the operating cash flows used of SGD3.7 million for the same period in the previous financial year. The increase was mainly due to an increase in profit before income tax, with no notable changes in the other sections. This metric has shifted to Favorable.
Gearing ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing ratio | 36.3% | 32.6% |
| Rating | Favorable | Favorable |
Gearing ratio for 31 December 2024 increased to 36.3%. This is computed excluding the provision for onerous contracts of SGD1.7 million, with total assets and the total liabilities (excluding provision for onerous obligations) amounting to SGD346 million and SGD127 million respectively. This metric remains Favorable.
| Financial | SGD’000 | Adjusted SGD’000 |
|---|---|---|
| Total Assets | 346,961 | 346,961 |
| Total Liabilities | 127,800 | 126,045 |
| Total Equity | 219,161 | 220,916 |
Interest coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest coverage | 16.6x | 10.0x |
| Rating | Favorable | Favorable |
The interest coverage stands at 16.6 times as of 31 December 2024, using profit before tax of SGD19.4 million and finance costs of SGD1.2 million. The metric is Favorable, as TSE currently generates profits to ensure sufficient interest coverage and is higher than my required coverage of 3.0 times.
Price-to-book ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 0.87 | 0.89 |
| Rating | Favorable | Favorable |
The Price-to-book (“P/B”) ratio for TSE is 0.87. This is computed based on the closing share price of SGD0.410 as of 28 February 2025, and the Net Asset Value (“NAV”) of the Group of SGD0.472 per share as of 31 December 2024. This is Favorable as it translates to paying a discount for TSE business.
As of 28 February 2025, the Market Capitalization is approximately SGD188 million.
Website: Yahoo Finance: Tai Sin Electric Limited (500.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 1.83% | SGD 0.008 |
| 2024 | 5.73% | SGD 0.024 |
| 2023 | 5.73% | SGD 0.024 |
| 2022 | 5.73% | SGD 0.024 |
| 2021 | 5.73% | SGD 0.023 |
| 2020 | 5.73% | SGD 0.015 |
With the payout in March 2025 of SGD0.008 per share, the dividend for the calendar year 2025 remains consistent to the previous years of SGD0.0235 per share. With a closing share price of SGD0.410 as of 28 February 2025, this translates to a yield of 5.73%. For my benchmark, a general reasonable yield would be around 5.25%. TSE’s dividend yield is above my benchmark and is Favorable.
Website: Reasonable Dividend Yield 2025Q1 – 5.25%
With the exception of 2020 due to Covid-19, TSE have been distributing relatively constant dividends throughout the years. With a favorable dividend yield, this is comparable to Real Estate Investment Trusts (“REITs”) whose mandates are to distribute majority of their earnings as dividends.
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Revenue | +20.1% | Favorable |
| Earnings per share | +130.0% | Favorable |
| Operating Cash Flows | +293.6% | Favorable |
| Gearing ratio | 36.3% | Favorable |
| Interest coverage | 16.6x | Favorable |
| Price to Book Ratio | 0.87 | Favorable |
| Overall | Favorable |
Overall, the metric has shifted towards Favorable to invest in TSE. As of the date of this article, TSE continues to be in a strong financial position. They are also able to generate sufficient earnings per share to sustain their dividend payouts, which in turn strengthens their profile as a reliable defensive stock.
Background
TSE is a Singapore-based investment holding company. The Company is engaged a cable and wire manufacturer and dealer in such products. Listed on the Stock Exchange of Singapore Catalist (formerly known as SESDAQ) in 1998, the Group was subsequently transferred to the SGX Main Board in 2005. Its operating segments include Cable & Wire (“C&W”), Electrical Material Distribution (“EMD”), Switchboard (“SB”), Test & Inspection (“T&I”).
TSE’s Cable business builds its success on the aggressive development and marketing of a comprehensive range of high-quality cables through a distribution network serving a diverse range of industries, while maintaining strong partnerships with reputed consultants and main contractors. Working together, they provide competitive electrical cabling and wiring solutions for both the private and public sectors in all categories of industrial, commercial, residential and offshore & marine projects.
To cater for the robust growth in the regional market, TSE operates three cable manufacturing plants. They are located in Singapore, Malaysia and Vietnam, all of which are fully equipped with the latest manufacturing facilities and technologies to meet increasing demands.
TSE is strongly committed to making continual advancements in technology and innovation, both of which are their greatest strengths. Their ISO 9001, ISO 14001 and OHSAS 18001 certifications and conformity to various world-class standards are solid testimonies in their efforts to achieve excellent quality in both their manufacturing process and products.
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Website: Tai Sin Electric Limited (SGX: 500): 2024 Full Year Result
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