NPX - Nuplex Industries

[adobee]

Have seen any word on this company before on ASF so thought I would start a thread..


http://nuplex.com.au/

Business Description
Nuplex Industries Limited (NPX) is Australasias largest manufacturer and distributor of technical materials, resins and polymers for use by the paint, ink, adhesive, fibre-reinforced plastics, paper and textile industries. It also supplies a range of industrial chemicals and specialist building products. The company is listed on the New Zealand (NZX) and Australian (ASX) Stock Exchanges and has operations in New Zealand, Australia, Asia, Europe and Americas.

Company Strategy
NPX is focusing on growth economies in Asia to expand its manufacturing capacity. It believes that China is capacity constrained. It is looking at expanding its coating resins business there in the second half of 2010 at a cost of approximately NZ$25m. It might increase composites capacity in Vietnam in 2011. In Europe and Australasia it does not intend to raise capacity but is targeting efficiency gains. Capital expenditure is likely to be in line with depreciation in 2010 and 2011 of which around 40-50% will comprise of stay-in-business capex. NPX is also planning to sell assets to generate cash. Disposal of Seven Hills and Avondale sites which are expected to fetch NZ$35-40m is still pending. Management is in no hurry to sell these assets and would like to wait until market conditions improve. . NPX has consolidated all its ordinary shares on a 1 for 4 basis. Consequently NPX has 189.8m shares on issue versus approximately 759m shares earlier.We have adjusted our fair value and trigger levels for the stock on the back of a substantial decline in the number of shares on issue. Our revised fair value now stands at NZ$2.44. Our NPAT estimates remain unchanged. However we have corrected our EPS forecasts to reflect the significant reduction in shares outstanding. Our EPS for FY10 and FY11 are NZ12.9c and NZ19c respectively.Nuplex Industries reported NPAT down 76% to NZ$5.96m for the half-year ended 31 December 2008. Revenue from ordinary activities were NZ$795.11m, up 6% from the same period last year. Basic and Diluted EPS were 7.3 NZ cents compared to 30.7 NZ cents last year. Net operating cash flow was NZ$44.27m compared to NZ$44.06m last year. No dividend was declared.

 

[oldblue]

Hi adobee.

It would be helpful to know whose review of NPX you are quoting here, especially as it includes an estimate of "fair value".

I've held NPX for several years and have done very well until recently when, like a lot of other companies, the combination of foreign currency borrowings and bank covenants caused them to come unstuck ( pardon the pun) and forced to go to shareholders for a heavily discounted cash issue. Fortunately, it was a rights issue and I managed to add to my holding with a couple of parcels of cheap rights which are now well in the money.
Fundamentally, I reckon it's a sound business and I'm continuing to hold.

 

[LEONCE]

can anyone explain the back flip from $1.90 last week back to $1.73. no new announcement made by co.

 

[oldblue]

can anyone explain the back flip from $1.90 last week back to $1.73. no new announcement made by co.

NPX has run up hard since the cash issue and subsequent share consolidation. No stock goes up continually without the occasional pause, correction and re-grouping as holders re-assess and take profits. I'm picking that's what's happening here, plus a bit of nervousness as results announcement nears.

 

[LEONCE]

thanks old blue. I think you were spot on. .great to see NPX back to $1.93 straight after positive announcement today.

 

[Nero64]

This stock is struggling to breakout beyond $2.70 and is taking larger swings down than up lately

I failed to notice it had a 4:1 split before I bought it, but had my eye on it as it was putting out good profit guidance statements. I didn't get onto it until late and kept adding in.

It just hasn't kicked on and volume is scarce. You can see people buying in then exiting because it is not doing anything.

I am trying to hold on for the dividend but am getting caught in the noise.

I am not sure if it will match the half yearly result next year, but it's full year should be better based on the strong first quarter.

Do sny long term holders still see the upside?

 

[oldblue]

This stock is struggling to breakout beyond $2.70 and is taking larger swings down than up lately

I failed to notice it had a 4:1 split before I bought it, but had my eye on it as it was putting out good profit guidance statements. I didn't get onto it until late and kept adding in.

It just hasn't kicked on and volume is scarce. You can see people buying in then exiting because it is not doing anything.

I am trying to hold on for the dividend but am getting caught in the noise.

I am not sure if it will match the half yearly result next year, but it's full year should be better based on the strong first quarter.

Do sny long term holders still see the upside?

In fact NPX had a record first half and was quite upbeat about prospects for the full year.

The SP has certainly stalled lately but it's worth remembering that this is a NZ company, reporting in NZD. A relatively weak NZD against the AUD will enhance its reported profits, in the same way that the strong NZD last year depressed profits, especially against USD and AUD.

Probably not attractive as a short term trade at present but I'm holding for the medium/long term.

Incidentally, it was a 4 for 1 consolidation, not a split, following the heavily discounted cash issue.

 

[System]

On September 13th, 2016, Nuplex Industries Limited (NPX) was removed from the ASX's official list following implementation of the scheme of arrangement pursuant to which Allnex New Zealand Limited acquired all of the issued shares in the Company.