Tat Seng Packaging Group Ltd (T12) AI Stock Analysis

• Market Cap: S$142.27M
• Dividend Yield: 4.42%
• Average Volume (3M): 15.59K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.61
• Revenue Growth: -8.46%
• EPS Growth: -23.11%
• Country: SG
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.04
• Shares Outstanding: 157,200,000
• 10 Day Avg. Volume: 8,580
• 30 Day Avg. Volume: 15,590
• PEG Ratio: 0.00
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 4.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: S$1.00 ▲(11.11% Upside)

Tat Seng Packaging Group Ltd's overall stock score is driven by its stable financial position and attractive valuation, with a low P/E ratio and high dividend yield. However, technical indicators suggest a neutral trend with weak momentum, and declining revenue and profitability margins pose challenges. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Cash Generation Ability

The positive free cash flow growth indicates strong cash generation capabilities, providing the company with flexibility for reinvestment and debt management.

Balance Sheet Health

Low leverage enhances financial stability and reduces risk, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Market Position

Stable income from long-term contracts strengthens market position and provides predictable revenue streams, supporting strategic planning and investment.

Negative Factors

Revenue Growth Trends

Declining revenue growth suggests challenges in market expansion and product demand, potentially impacting long-term financial performance.

Profitability Margins

Decreasing margins indicate potential operational inefficiencies, which could hinder profitability and require strategic cost management.

Shareholder Structure

The cash offer could alter the shareholder dynamics, affecting control and decision-making processes, potentially leading to strategic shifts.

Tat Seng Packaging Group Ltd Business Overview & Revenue Model

Company Description

Tat Seng Packaging Group Ltd, together with its subsidiaries, designs, manufactures, and sells corrugated paper products and other packaging products in Singapore and the People's Republic of China. The company offers regular slotted carton boxes, die-cut carton boxes, offset-printed boxes, corrugated partition pads/layer pads, corrugated boards, and heavy duty corrugated products; other packaging-related or customized products, such as tapes, stretch films, foams, and edgeboard protectors; and paper pallets for storage and transport requirements. It serves multi-national corporations and local manufacturers in the food and beverage, electronics and electrical, pharmaceutical and chemical, plastic and metal stamping, and other exporting related industries. The company was formerly known as Tat Seng Paper Containers Pte Ltd. and changed its name to Tat Seng Packaging Group Ltd in 2001. Tat Seng Packaging Group Ltd was founded in 1968 and is based in Singapore. The company operates as a subsidiary of PSC Corporation Ltd.

How the Company Makes Money

Tat Seng Packaging Group Ltd generates revenue through the production and sale of its packaging products, leveraging a diversified customer base across multiple industries. Key revenue streams include the sale of flexible packaging materials, such as printed films and bags, which are supplied to manufacturers in the food, beverage, and consumer goods sectors. The company also benefits from long-term contracts with major clients, ensuring a stable income. Additionally, Tat Seng invests in research and development to create innovative packaging solutions, enhancing its market position and driving sales. Partnerships with suppliers and distributors further expand its reach, contributing to its overall earnings.

Tat Seng Packaging Group Ltd Financial Statement Overview

Summary

Tat Seng Packaging Group Ltd demonstrates a stable financial position with strong cash flow generation and low leverage. However, declining revenue and profitability margins indicate potential operational challenges. The company should focus on improving operational efficiency and revenue growth to enhance its financial performance.

Income Statement

Tat Seng Packaging Group Ltd has shown a decline in revenue over the TTM, with a revenue growth rate of -3.28%. Despite this, the company maintains a healthy gross profit margin of 21.51% and a net profit margin of 6.64%, indicating efficient cost management. However, the EBIT and EBITDA margins have decreased compared to previous years, reflecting potential challenges in operational efficiency.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.28, indicating low leverage. The return on equity (ROE) is 7.84%, which is moderate but shows a decline from previous years. The equity ratio stands at 64.65%, suggesting a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 2.39% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.36, and the free cash flow to net income ratio is 0.85, both reflecting strong cash conversion capabilities. However, the operating cash flow coverage ratio has decreased slightly, suggesting a need for careful cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	237.79M	253.94M	258.87M	336.26M	367.51M	303.07M
Gross Profit	51.14M	56.48M	57.11M	58.94M	69.17M	64.32M
EBITDA	28.42M	36.13M	37.52M	36.27M	43.88M	42.23M
Net Income	15.79M	18.82M	18.84M	20.67M	23.31M	23.13M
Balance Sheet
Total Assets	310.09M	328.50M	321.89M	307.88M	341.13M	295.42M
Cash, Cash Equivalents and Short-Term Investments	5.76M	103.40M	104.24M	82.78M	93.70M	72.09M
Total Debt	55.93M	67.55M	75.72M	62.87M	85.53M	65.39M
Total Liabilities	98.60M	115.02M	119.07M	110.89M	145.12M	124.82M
Stockholders Equity	200.51M	202.41M	191.46M	185.20M	183.36M	159.85M
Cash Flow
Free Cash Flow	15.94M	25.34M	32.43M	23.60M	9.29M	23.20M
Operating Cash Flow	20.02M	29.67M	43.79M	43.24M	18.40M	27.40M
Investing Cash Flow	-9.82M	-17.21M	-25.33M	-18.49M	-8.38M	-3.39M
Financing Cash Flow	-14.45M	-17.24M	6.37M	-27.45M	5.54M	-7.85M

Tat Seng Packaging Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:T12, the sentiment is Positive. The current price of 0.9 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.89, and above the 200-day MA of 0.86, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 78.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:T12.

Tat Seng Packaging Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
T12	69 Neutral	S$142.27M	9.00	7.91%	4.42%	-8.46%	-23.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
N08	58 Neutral	S$103.14M	15.46	4.52%	5.71%	-3.74%	-43.70%

Tat Seng Packaging Group Ltd Corporate Events

Tat Seng Packaging to Absorb Subsidiary UPI’s Business in S$7.9 Million Internal Transfer

Tat Seng Packaging Group has signed a business transfer agreement to acquire the entire business, assets, liabilities and employees of its wholly owned subsidiary United Packaging Industries Pte. Ltd. for a transfer consideration of S$7.93 million, subject to post‑completion balance sheet adjustments. The transaction, to be funded through internal resources and/or set‑off against dividends from UPI, is structured to have no material financial impact on the group and is aimed at enhancing operational efficiency and streamlining the processes of its Singapore operations, pending the fulfilment of standard corporate and regulatory approvals.

The most recent analyst rating on (SG:T12) stock is a Hold with a S$1.00 price target. To see the full list of analyst forecasts on Tat Seng Packaging Group Ltd stock, see the SG:T12 Stock Forecast page.