World Precision's restructured board has old birds in new roles. L-R: newly-appointed executive chairman Shao Jianjun, controlling shareholder Wang Weiyao, newly-appointed CEO Wu Yufang. Company photo.
AT WORLD PRECISION MACHINERY, Wang Weiyao holds a 64.2% stake.
It's intriguing that he recently relinquished his post as non-executive chairman. CEO Shao Jianjun has stepped up to become executive chairman.
Mr Wang will remain as a non-executive director of World Precision.
”Mr Wang and myself are major shareholders of World Precision, and we do our best to deliver results satisfactory to shareholders,” said Mr Shao, who holds a 13.5% stake.
Mr Wu Yufang, an executive director of the Company, has been appointed CEO in place of Mr Shao.
CNC cutting machines manufactured by World Precision and used by other businesses under the World Sharehold group. NextInsight file photo
At the metal stamping equipment maker’s 1Q2013 investor briefing recently, Mr Shao explained the shift in board constitution:
“Firstly, there is a simpler board structure.
"Secondly, the large scale of operations of our enlarged group under World Sharehold means that Mr Wang frequently found himself unable to World Precision’s board meetings. This would pose a problem when World Precision is scrutinized for corporate governance.
"World Precision remains directed by the growth strategy of World Sharehold, which is helmed by Mr Wang.
"The new board is an executive team.
"The new CEO, Mr Wu, has been responsible for World Precision’s internal operations such as production and quality while I have been responsible for external matters such as corporate development. In this respect, there is no change to the core job roles.
"Having said that, the handover will not take place overnight. Rather, it is a lengthy process.
"Mr Wu has close to 30 years of work experience. Like myself, Mr Wu worked his way up the company. We started as production workers, progressed to become technical supervisors, and subsequently managers. Mr Wu has been the Group’s general manager for a long time and I have a strong working relationship with him.
"Mr Wu and myself will manage World Precision for long-term stable growth.”
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The analyst has a target price of 54 cents on the stock, based on 9x 2013F PE, translating into an upside of 28.6% based on its recent stock price of 42 cents. The company is benefiting from a pick-up in orders, driven by demand from the automobile industry and a recovery from home appliances manufacturers. The Group’s order book improved to Rmb 150.4 million as of 22 April 2013, from Rmb 117.7 million two months ago. The delivery of the order book typically stretches over three to nine months. "Last year was difficult for most Chinese manufacturers and we were mildly affected," said Mr Shao. |
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