Transpac Industrial

Transpac Industrial: Group announced results yesterday, revenues down 69% to $6.8m, but earnings up 1066% y/y to $6.6m. This was mainly due to a gain from investments, up 436% y/y to $5.3m pre-tax. The Group's available-for-sale investments was mainly due to fair value gain of $17m due to the increase in price of quoted OUE shares which the Group held through Fortune Code Ltd; NAV per share declined 55% to $0.39 for FY12, mainly due to the capital return of $82m in the year. No dividends were declared for FY12. On the outlook, Group reported that the slowdown in the economic growth of developed countries and key Asian countries had placed considerable strain on the export based Asian companies. In this challenging environment, more corporate cost cutting measures were being instituted to shore up the performance of the companies. For the established companies, there had been active funding activities through bond issuance. For the younger and growth companies, equity funding continues to prevail. The Group is a venture capital investment company based in Singapore. Income is derived from the sale or revaluation of investments (rather than recurring profits) located in various countries. Accordingly, revenue by geographical segment varies from one reporting period to another. Group trades at 2.2x P/B;