Winas (formerly: Sinwa Limited)

[dydx]

Sinwa has a very nice company website…..
http://www.sinwaglobal.com/SinwaGlobal/

and in it I found a very entertaining and informative video….
http://www.sinwaglobal.com/SinwaGlobal/?page_id=1166 [video page]

and a very nice and informative corporate brochure…..
http://www.sinwaglobal.com/SinwaGlobal/w...ochure.pdf

[portuser]

- which should be strengthened much further when the dispute (now under arbitration) concerning 50/50 j-v Nordic International Ltd is finally settled.

A $0.01/share Final dividend declared.

To add on what Dydx have mentioned, the 50/50 J-V Nordic International Limited owns a a seismic vessel which Sinwa wanted to sell 50% stake to Morten Innhaug and it could fetch another 16 Mils or $.046 in FY14.

Arising from the arbitration initiated by Mr Morten, Sinwa’s shares in Nordic International Limited (NIL) are to be sold to Mr Morten at a fair value to be determined and certified by a mutually agreed auditor. The fair value of the shares is to be based on the NAV of NIL as at 2 December 2011.

Subsequently, it was mutually agreed that Baker Tilly is to be the auditor and parties are in the process of negotiating the terms of engagement with Baker Tilly.

Sinwa’s 2013 results announcement gave $15.1m as NIL’s NAV. Is this amount substantially different from NIL’s NAV as at 2 December 2011?

Earlier, Sinwa took a suit against Mr Morten, and Sinwa is of the view that the final valuation of the shares in NIL cannot be completed until and after the full and final determination of the issues in the suit.

Does this mean it will be a long while before Sinwa receives the sales money of NIL shares?

Will those who have been tracking Sinwa enlighten? Thank you.

[dydx]

I suppose normally a quarrel between 2 equal partners should not last forever; it is tiring and costly process, and at a certain point, either side can just turn pragmatic and want to resolve the matter soon.

An arbitration process usually follows certain procedures including deadlines. In this case, Baker Tilly's coming valuation report and inputs should form the main basis for an eventual final settlement based on the arbitration process. If both sides can arrive at a fair settlement price for the underlying survey vessel - which I understand is now under profitable employment - the earlier suit took up by Sinwa against Mr Morten may well become just a sideshow?

[portuser]

Thank you dydx.
How will the hiring of the Seismic vessel improve Sinw's position when the selling price of Sinwa's stake in NIL is based on NAV as at 2 Dec 2011?

Will the dispute be resolved soon?
http://www.singaporelaw.sg/sglaw/laws-of...0-sghc-157

[portuser]

Sinwa has sold its anchor handling tug for $6.9m.

http://www.nextinsight.net/index.php/sto...more-to-go

The disposal of seismic survey vessel seems uncertain.

[dydx]

Sinwa's cash pile has increased further…..
http://infopub.sgx.com/FileOpen/Sinwa_An...eID=289090

[BlueKelah]

Sinwa's cash pile has increased further…..
http://infopub.sgx.com/FileOpen/Sinwa_An...eID=289090

thanks for the update, this looks like a good company to invest, especially as a proxy to any shipping recover, though from the looks of where the global economy is heading....

So the 7 million will go to paying off their debts of 8+million

Net cash now stands at almost 23% not factoring in this sale.

looks good and will vest if it goes below 20cents or cash pile ups to 50%

[dydx]

A report on Sinwa by Leong Chan Teik from NextInsight…..
http://www.nextinsight.net/index.php/sto...usinesses-

[Bibi]

I am not sure whether you have noticed the margin has been getting worse every quarter. And Q4 profit from continuing operation was the worst at 0.36mil. I dont know whether its due to business seasonality. If this trend continues, it might report losses for subsequent quarters.

not vested

[dydx]

I am not sure whether you have noticed the margin has been getting worse every quarter. And Q4 profit from continuing operation was the worst at 0.36mil. I dont know whether its due to business seasonality. If this trend continues, it might report losses for subsequent quarters.

not vested

The much lower NP from continuing operations for Q4 at only $0.36m (vs. $7.101m for the first 3Q's averaging to $2.367m/quarter, and $1.661m for Q3) is mainly due to the much higher administrative expenses for the quarter at $6.602m (vs. $14.081m for the first 3Q's averaging to $4.694m/quarter, and $4.723m for Q3). While Sinwa has not provided details on the increase, my guess is that it could be related to provision for performance bonus or profit-sharing for the EDs and key managers.

Sinwa's Supply business - basically providing provisions and spare parts to boats/ships, oil rigs and offshore platforms operating offshore - has been a very stable one in delivering recurrent profits over its 10 years since listing in 2003, i.e. it is a proven cash-cow. We must also be mindful that taking customer orders and delivering provisions to them on the high seas requires quite a bit of extra work, logistics and coordination, therefore Sinwa's historical GP Margin of 25% for its Supply trade is a fair one and sustainable.

I don't think it is wise to interpret a quarter of lower profits for an established regional business like Sinwa's as a trend.