New chapter for Pan-United Corp

It is a momentous year for Pan-United Corp as the group finally competed its de-merge of its port business which it started in 1997. Under Xinghua Port Holdings Ltd (“Xinghua”), the business was successfully listed on the Main Board of the Stock Exchange of Hong Kong on 12 February 2018.

The past year had been a revelation for Pan-United as the construction company restructured its businesses, implemented capital reduction, proposed distribution of 1-for-1 Xinghua shares to existing shareholders and completed a rights issue in 2017. In light of these major changes, what are the investment merits of Pan-United?

Business profile

Founded in 1958, Pan-United is essentially a home-grown enterprise that is family-controlled and family-managed. However, understanding Pan-United is not an easy feat because of its diversified business portfolio. It’s core competency is in the supply of concrete and cement business, with more than 40% and 34% market share in concrete and cement respectively. Pan-United is also one of the top two ready mixed concrete suppliers in Asia (ex-China), with an increasing footprint in Indonesia, Malaysia and Vietnam.

Besides the concrete and cement business, Pan-United operates a trading and port business in China, which it de-merged recently. Previously, it also had business activities in shipping line but it exited the business due to the downturn in the industry.

Pan-United

In 2016, Pan-United sold its entire equity stakes in two wholly owned subsidiaries, namely Pan-United Shipping Pte Ltd (“PUS”) and P.U. Vision Pte Ltd (“PUV”), collectively known as the “Tug and Barge Business”, for a cash consideration of $29,922,000.

The buyers of the shipping business were the founding Ng family. According to Pan-United, [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

Sign up as member and receive a bonus investment report on Singapore stocks! The membership benefits include:

1) Access to the latest premium articles of SG Wealth Builder
2) Email notifications of latest blog articles
3) Access to Wealth Forum for investment ideas and discussion
4) Free bonus investment report
5) Request for coverage on stocks, insurance and other personal financial topics
6) Comment in articles and Wealth Forum

Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.

Monthly Subscription

You may sign up for the monthly subscription for only $19.99 per month. You can choose to cancel the subscription after one month with no penalty.

[wlm_paypalps_btn name=”SG Wealth Builder (Monthly Recurring)” sku=”0E2C0C62C0″ btn=”pp_pay:l”]

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Magically yours,

SG Wealth Builder

2 thoughts on “New chapter for Pan-United Corp

  • June 1, 2018 at 7:57 am
    Permalink

    Thanks Gerald. Excellent write up on Pan-United Corp

  • June 1, 2018 at 9:04 am
    Permalink

    Hi Francois,

    Thank you for your comments and really appreciate your support.
    Pan-United is an interesting stock which I would monitor and probably invest at the right opportunity.
    Have a great weekend!

    Regards,
    Gerald
    https://www.sgwealthbuilder.com

Leave a Reply