Hanwell has been trading below book value. Is it a good investment for long term?
Hanwell Holding Businesses
Hanwell is one of Singapore’s and Malaysian's key players in the manufacturing, brand management and marketing of fast moving consumer goods (FMCG).
In Singapore, Topseller is distributing famous brands like Royal umbrella rice, Golden Circle oil and brands like Kao and Lion. Tipex is distributing
Beautex tissue and diaper brands Pet Pet and Fortune with Tofu and Noodles.
In Malaysia, SOCMA distributes Mentos, Chupa Chups, Smint, Fruitella, Tao Kae Noi, Tai Sun, Supernut, Mazola,
Hanwell Holdings also own 63.95% of Tat Seng Pkg T12 which is listed in SGX. The company reported revenue of SGD 163,205,000 for the period of first 6 months.
Financial
The group's reported Revenue of S$377 million and S$16 million net profit for end 3rd quarter and an increase of 24.6% YoY.
Hanwell Holdings gearing is at 32.70% and debt S$86 million. I personally feel that it's on the high side and should be worrying. The company is currently trading at S$0.22, the NAV is S$0.48. The company is trading at a discount of 55%
Conclusion
Hanwell Holdings is an undervalued stock from my point of view, i believe it is worth more than current market price. Hope 4th Quarter results will be flying color and investors faith will be back.
