Hupsteel Limited (H73.SI)

Hupsteel is a provider of industrial hardware and infrastructure products. It derives it's revenue from sales of pipes and fittings, structural steel and general hardware to the Marine, Oil & Gas and construction industry in Singapore. It is based out of Singapore.

A link to a very interesting write up of the company that someone else put together can be found here. I don't have much to add to that write up.

The balance sheet is below:

	Book	Adjustment	Adjusted	Per Share	Comment on Adjustment
Cash & Equivalents	59,491	0	59,491	0.10
Receivables	41,499	-4,964	36,535	0.06	Additional bad debt reserve
Inventories	45,828	0	45,828	0.07
Securities	15,721	0	15,721	0.03
Other	313	0	313	0.00
Total Current Assets	162,852	-4,964	157,888	0.26
Properties	13,567	64,933	78,500	0.13	Market per AR
PPE, Net	24,934	-12,467	12,467	0.02	50% haircut
Non Current	38,501	52,466	90,967	0.15
All Liablities	8,808	0%	8,808	0.01
NCAV	154,044		149,080	0.24
NCAV + Non Current	192,545		240,047	0.39

A summary of the thesis is simple: Hupsteel is a profitable and cash flow positive net-net with substantial investment properties whose value does not appear to be reflected in the price. Hupsteel also operates in a cyclical industry that is currently experiencing very difficult conditions. When the cycle will turn is unclear but it will at some point, meanwhile the company remains profitable and cash flow positive. 

Disclosure: Long H73.SI