Geshen has disposed these 2 loss-making subsidiaries. The disposal was first announced on 19th Dec 2014 and was announced as completed on 2nd Mac 2015.
How good is this Polyplas?
The utilization rates based on various machine tonnage are as follows:
Anyway, it is reported by analyst that SKPRes has current utilization rate of 75-85%, from 60% during its disappointing time in calendar year 2013. It has constructed new factory that will increase its capacity by another 75%!
There should be a mistake in the table above in FY14 which I think sales to Hungary should be close to zero. However, overall sales to Europe still increases by a good 33% YoY.
Geshen's has largely Japanese customers but Polyplas has wider geographical presence and strangely, there is no Japan in the list.
Polyplas's main export country in FY14 is US, which makes up about 37% of its export followed by Europe (32%) and Asia (31%). So, acquisition of Polyplas will give Geshen a good global exposure straight away.
US economy is recovering while Europe and Japan are busy printing money now. Will this give Geshen another boost?
Both VS and SKPRes also have lousy website design but they are good companies.
Mr Narinder is a real entrepreneur and almost single-handedly leads Polyplas. His leadership was just recognized last year and it remains a mystery why he decided to sell his company.
Overall, at below 60sen per share, Geshen looks undervalued after all those corporate exercises which is expected to be completed in the 2nd quarter of 2015.
Its RCPS is set at 60sen per share which is higher than current share price of below 60sen!
Earlier this year, its public shareholding spread of 22.83% was not compliant with listing rule so its major shareholders have to dispose 2.5mil shares in Feb15 to lift the figure to 25.96%.
However, Latitude is one of the market leader in its industry but Geshen is not. Latitude's revenue is growing all these years but it is not the case with Geshen.