NSL

NSL - latest news was its results in End Feb, where NSL’s FY13 net profit spiked 218% to $148.6m, mainly boosted by a net gain of $121.7m from the sale of associate Bangkok Synthetics (BST) in Nov '13. Excluding contribution from BST, NSL’s core pre-tax profit would have increased 13% to $27.2m, in line with the higher revenue of $507.7m (+21%), driven by higher sales volume from its precast operations in Singapore and the regional dry mix business, as well as higher spreader deliveries and improved product mix under its Engineering division. Investors will likely cheer the special dividend of $0.40, in addition to the usual final dividend of $0.10. Following the combined payout of $0.50 per share (26.7% return), NSL will still be left with net cash amounting to ~$0.62 per share. Coupled with NSL’s strong cash generative core business (FY13 operating cash flow of 7.7¢ per share), this could inspire hopes of another round of special dividends to be paid in future, particularly if the group is unable to find new businesses to invest in. Market Insight retains NSL as a constituent in its model Value portfolio. The counter is a deep value asset play with re-rating catalyst to come in the form of capital management.