Share price of Tai Sin Electric fell today 4.5% today to S$0.425 after releasing a set of weak results. Tai Sin Electric reported revenue declined 12.86% from $320.91 million last year to $279.65 million.
In my previous post (My Personal Analysis of Tai Sin Electric Limited), I mentioned about Tai Sin Electric’s revenue and profits are very dependable on the construction sector which is cylindrical. Not withstanding the slowdown in the property market and continued economic uncertainties, revenue declined across all its business segments (Cable & Wire (C&W), Electrical Material Distribution (EMD), Switchboard (SB), Test and Inspection (T&I)).
It is important to check if Tai Sin Electric is still able to generate enough cash flow to tide through the current uncertainties. In current 2017, net cash from operating activities was 37.4 million. Cash flow for Tai Sin Electric is still going strong despite gloomy economical conditions and it has been growing since 2012.
| Year | 2013 | 2014 | 2015 | 2016 | 2017 |
| Net cash from operating activities ($’000) | 16,801 | 19,843 | 34,365 | 8,421 | 37,422 |
Although earnings per share has fallen to 4.17 cents, Tai Sin Electric still maintains their dividend payout of 2.35 cents. A final dividend of 1.6 cents was declared.
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
| Total dividend (cents) | 1.6 | 2.25 | 2.25 | 2.25 | 2.35 | 2.35 |
| Earnings per share (cents) | 4.28 | 4.86 | 4.96 | 3.92 | 5.31 | 4.17 |
| Dividend payout ratio (%) | 37.4% | 46.3% | 45.4% | 57.4% | 44.3% | 56.4% |
The cash and cash equivalent at the end of the year declined to $22.08 million compared with $34.17 million at the end of the last year.
Hi Sir.. going forward with the expected revival of the construction industry coming from increasing property development projects from enbloc sales and from the govt release of more public project, this will auger well for Tai sin products. It need to Ensure its Cashflow management is on tops to avoid Long credit term to Contractors and discipline in avoiding doing business with weak Contractors .