Namlee Pressed Metal (G0I.SI) - The Carrier Man can
For this month, I have decided to do a post on Namlee Pressed Metal (current price 0.315). 
NPM used to be located near a hot spring and the SAF yacht club in the Senoko industrial area, near those 3 pretty candlesticks which our friends across the causeway love looking at. It has since moved to the other side of the island, to Sungei Kadut industrial area near to King Wan's offices.
This has been a pretty boring and old family business. As usual it is run by a pretty old family and has been involved the metal products business in Singapore for god knows how many years. Well to be more exact, it is run by the Yong family, who had been involved in the metal products fabrication business since the 1950s, incorporated in 1975 and listed on Singapore Stock Exchange (SGX) main board October 1999.
Revenue comes mainly from two places with about half from each on average.
1) The building products business supplying to the housing sector in Singapore and
2) Aluminium frames for container refrigeration units
The main attraction for Namlee would probably be the aluminium frame business. It makes these frames for non other than leading world class Carrier group. Yep the one with "The carrier man can...) jingle we used to watch on TV trying to sell Carrier aircons. For starters, doing business with a global group like Carrier means so long as the relationship maintains its status quo, NPM has exposure to the worldwide container market with a company that has a sizeable moat. We can view this business as pretty constant and resilient, with okish margins.
Let's look at some current valuations in simple BlueFund fashion.
Market cap : 76 million
NAV : $0.498
Price : $0.315 (37% discount to NAV)
Net cash : 33 million (43.46% of Market Cap)
Dividend yield : 7.94% (based on 2.5cents, historically has been 1cent plus some bonus)
Namlee used to have a lot of cash last year (>60% Mcap) but quite a bit has been used for CAPEX, with a new factory set up in Malaysia, moving to its new lease-hold premises which it bought from JTC (this will save on rent cost) and ramping up of inventories as new orders come in. So it now has offices in SG but production factory in Malaysia, good combo.
Now that things are set up nicely, going forward, it is very likely that profits will continue to roll in and Namlee will become a nice and proper cash cow. Already this year's EPS is 5.35cents with a nice fat bonus div being paid out. With the Baltic Dry Index for shipping at multi-year lows, any rebound in the shipping scene will see a sharp rebound and pile up of orders and profits for NPM.
[author holds shares in this company]
