#2 Fu Yu Corporation Limited
Fu Yu is now one of the largest manufacturers and suppliers of high-precision injection moulds and plastic parts in Asia.
Currently, Fu Yu have 8 manufacturing plants in Singapore, Malaysia and China. The market it serves include the IT sector, telecommunications, automotive, medical, etc.
As of its latest half-yearly report, Fu Yu’s revenue decreased by 26% to $71.6 million. Its net profit impressively increase by 46.3% to $7.38 million. Free cash flow came in at $16.9 million. As a result, cash balance of the company maintains at a sustainable level of $101.6 million.
Fu Yu is in a net cash position
of $101.6 million and do not have any bank debts or bonds. Lease liabilities are the only form of interest payments that it has on its balance sheet. The company's selling and administrative expenses are at $13 million.
This means that the company has enough cash to pay its workers and other expenses even if they
do not sell any products for a whopping 7.5 years!
Fu Yu last closed at $0.23 which values it at a P/E of 13.6x and dividend yield of 6.9%.
#3 Pan Hong Holdings Limited
Pan Hong is a niche property development firm headquartered in Hong Kong. The group started out in Zhejiang province and was one of the few foreign property developers in the region. Pan Hong has also started its involvement in biological technology.
As of its latest annual report, Pan Hong’s revenue increased by a superb
120.1% to RMB 643.9 million. Its net profit increased correspondingly by 107.4% to RMB 113.6 million. Free cash flow came in at a RMB 36.04 million and its cash balance increased slightly to RMB $281.2 million.
Pan Hong is in a net cash position of
RMB 261.4 million. This puts it in a really strong position to win projects as its expenses only amount to RMB 38.4 million. That would mean the company can continue to run for a few years even if it does not have many projects.
Pan Hong last closed at $0.11 which values it at a P/B of 0.39x and dividend yield of 3.59%.