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The making of a Dyna-Mac type of run
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Joelton
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09-May-2026 09:37
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A-Sonic Aerospace leans on acquisitions and buybacks to close valuation gap For A-Sonic Aerospace&rsquo s (SGX:BTJ) (A-Sonic) CEO Janet LC Tan, her journey in founding the company was driven more by her work experience than formal education. In a recent interview with The Edge Singapore, she recalls never really getting along with books during her school days. &ldquo After my secondary four education, I started working at the age of 17 and went on to have about 10 years of working experience in the building industry,&rdquo says Tan. Through a referral from a former colleague, Tan secured an interview with an aviation company that required her to be based in Beijing, China. &ldquo At that time, I knew nothing about the aviation industry and the country as well. So I just went ahead with the interview, and they offered me the job after two to three weeks of waiting.&rdquo From there, she entered the aviation industry, spending three years in Beijing working with airlines. After returning to Singapore, Tan started her own business. &ldquo Initially, we were doing a variety of things. However, from 1996 till our IPO in 2003, we decided just to stay focused on the aviation industry and gave up the rest of the business segments.&rdquo With her sister Jenny Tan Lay Yong, co-founder and executive director of the company, she brought A-Sonic to a listing on the Singapore Exchange (SGX) in September 2003. The IPO price was set at 26.5 cents per share with an initial market capitalisation of $75 million. In the latest SGX filing dated May 6, Tan holds a 65.65% stake in the company. Speaking on how responsibilities are divided, Tan says she was essentially the front-line person while her sister handled operations. &ldquo She takes care of all kinds of deliveries and the overall operations, while I was visiting customers and trying to secure business for the company. In the beginning, I used to travel a lot to the likes of China, the US and Europe. The cumulative travelling duration can run up to six months on a yearly basis.&rdquo That front-facing role, she adds, shaped her management style. She also admits that she can be quite strict at work. &ldquo I do demand from our people to perform. But when it comes to fun, I am all but ok with it we can all have fun together.&rdquo A-Sonic leans on logistics for growth Today, A-Sonic and its subsidiaries operate in two areas of business, mainly aviation and logistics. Under the A-Sonic aviation solution, it is involved in the purchase and sale of aircraft components, while the A-Sonic logistics solution covers logistics, which includes air and ocean freight, warehousing, transportation and air cargo terminal handling. As at Dec 31, 2025, the company has a staff strength of approximately 557 and operates in 28 cities across 14 countries, including the US, Canada, Dubai, China and Australia. For the logistics segment, Tan says that her current plan is to continue building logistics volume here in Asia, as well as the US and Europe. &ldquo Especially long-haul routes like the US and Europe, these are giving us better margins and rates. Also, by building up our volume, this will help the company to secure better pricing and bargaining power,&rdquo says Tan. Apart from building volume, Tan also prefers to enter into long-term contracts with her customers to build certainty for the company. According to her, a typical long-term contract averages around five years. &ldquo We like repeat customers with long-term contracts so that we can grow together as partners.&rdquo In the recent FY2025 results, A-Sonic&rsquo s logistics business unit registered a profit before tax of around US$4.6 million ($5.8 million), while its aviation business unit incurred a small loss before tax of US$358,000. &ldquo For the losses at our aviation business unit, it is still a relatively small amount, and we will be looking to scale up the business at the right opportunity to turn around the unit,&rdquo says Tan. Meanwhile, she believes logistics will never go out of fashion, as cargo cannot move itself and will always rely on logistics companies to move goods across the globe. The recent conflict in Iran, however, has pushed up oil prices, putting pressure on corporate costs. She notes that while companies cannot fully pass on these increases to customers, contractual arrangements allow for partial pass-through, with costs benchmarked against specified indices to determine the recoverable amount. Moving into logistics tech While the company remains focused on its logistics and aviation segments, it has also begun expanding into information technology (IT). On Feb 3, it announced that its wholly owned subsidiary, A-Sonic SCM, had entered into a binding joint venture agreement to acquire a 55% equity interest in RES Malaysia (RES), a Malaysian IT company. &ldquo The logistics industry is undergoing rapid digital transformation, and our customers increasingly expect integrated solutions that combine physical logistics execution with digital visibility, automation and data intelligence,&rdquo she says. Through the joint venture with RES, she believes that A-Sonic can accelerate its ability to offer digital supply chain visibility, workflow optimisation and recurring service models that complement its logistics operations. &ldquo This joint venture strengthens our competitiveness and positions us for the next phase of growth as our long-term strategy is to evolve from a traditional logistics provider into a technology-enabled supply chain solutions group,&rdquo Tan adds. She hopes that by strengthening A-Sonic&rsquo s competitiveness, the company will be able to improve operational productivity in its logistics-related business and achieve cost savings. &ldquo I will also want to integrate artificial intelligence (AI) into our systems, whenever feasible,&rdquo adds Tan. She admits that building a full-stack logistics technology platform internally would take a timeline of between three and five years and require significant investment. &ldquo RES already has proven products, an established customer base and domain expertise in mobility, automation and workflow systems. This will give us the capability and market access almost immediately.&rdquo On the acquisitions front, Tan believes that the cash pile sitting on the company&rsquo s balance sheet allows them to consider strategic acquisitions, especially during these turbulent times. As at Dec 31, 2025, A-Sonic was in a net cash position of US$45.86 million. &ldquo We have identified numerous potential acquisition targets and will try to shortlist two potential targets that are focused on end-to-end logistics. Hopefully, we can see through it by the end of this year,&rdquo says Tan. While she wishes to do more in terms of acquisitions, she believes that it takes time to integrate the acquisition target into the existing business of A-Sonic and therefore she would rather take it at a slower pace to ensure stability. As for picking the acquisition targets, Tan says that some of the criteria include the geographical focus and the type of logistics and supply chain that they are in. &ldquo Some of these targets can be operationally strong in either air, land or sea, and these are different segments of the logistics industry. Therefore, we have to see which one is the best fit for A-Sonic.&rdquo Share buybacks and spin-offs While the idle cash pile remains on its balance sheet for potential acquisitions, Tan has recently begun deploying part of it through a series of share buybacks in a bid to narrow the valuation gap. With a share price of 55.5 Singapore cents and a net asset value (NAV) of 47.91 US cents, this translates to a price-to-book ratio of 0.9 times. For the past six months, the share price has seen a gain of 65%. Furthermore, A-Sonic&rsquo s net cash position of $58.53 million versus its current market capitalisation of $57.46 million means that the market has assigned a negative value to its business operations, which has generated US$3.37 million in profit after tax in FY2025. &ldquo Our share price has been trading at a discount to our NAV for the longest time. Therefore, through these frequent share buyback transactions, we hope to bridge the gap between our share price and our book value,&rdquo says Tan. Recently, analysts have begun taking a closer look at A-Sonic. On April 1, Paul Chew from PhillipCapital issued a non-rated report on the company. While no target price and recommendation were stated in his report, he says that A-Sonic&rsquo s working capital requirements have been minimal or negative over the past five years, with payables exceeding receivables. &ldquo A-Sonic is trading at attractive valuations with net cash that has been stable, averaging US$45 million per year over the past five years,&rdquo Chew adds. He foresees that with the cash hoard, A-Sonic can undertake earnings accretive tuck-in acquisitions and help to boost its scale and enable spin-offs in the future. As for potential spin-offs, Tan says that any such corporate action will be highly dependent on the performance of the companies within A-Sonic. &ldquo Why do I think that spin-offs are important? While it can help to increase our company&rsquo s value, I also believe that post spin-offs, the entity could grow on its own and could even be a household name.&rdquo Growth strategy overview Looking ahead, A-Sonic will adopt a multi-pronged growth strategy. &ldquo First, we will be looking at internal growth, which is really to increase our customer base and network by securing long-term contracts. Second, on the inorganic growth front, we will also undertake any potential acquisitions and joint venture partnerships. Third, of course, we will be looking at any potential spin-offs as well to drive our growth,&rdquo adds Tan. The company is also looking to expand further into Southeast Asia, particularly Malaysia, Vietnam and Indonesia, which are fast-growing countries with a combined population of approximately 424 million people. &ldquo At the end of the day, we will continue to put in efforts to create value for all of our shareholders,&rdquo she adds. |
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Joelton
Supreme |
04-Feb-2026 11:33
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A-Sonic to take 55% stake in Malaysia' s tech firm RES A-Sonic Aerospace plans to take a 55% stake in RES Malaysia, a Malaysian information technology company, so as to expand its tech capabilities and apply it on its logistics business. The amount to be invested is not disclosed for now. RES has four wholly-owned units, and has a 30% associate stake in another. " The joint venture is aligned with the A-Sonic Group&rsquo s strategy to enhance its digital and technology capabilities and to progressively evolve into a technology-enabled supply chain solutions group," reads A-Sonic' s announcement on Feb 3. The company wants to increase digitalisation and automation across its operations and where suitable, tap AI to lift productivity. A-Sonic explains that rather than develop its own technology platform, it sees lower execution risks and faster implementation with RES. |
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aragosta
Supreme |
04-Jan-2026 11:48
Yells: "BBs never say why when they buy; never tell when they sell" |
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Alamak , so much details, so much reasonings, so much explanation.... yet got still people don' t get it..... ' read the fine print again la, everything is there to know of all the possibilities.... if an offer of 0.54, 0.55 or even at nav of 0.59 may not be successful, how can a 0.30 offer ever can ever get thru?.... think.... ' A privatisation excercise is not cheap, you know? It may cost as much as one to two million bucks..... ' btw, the detailed analysis is applicable to other offers too, like why certain " low ball" offers also failed...... few years ago, an FHT privatisation offer at above nav, and way above it' s " regular" trading market price failed. It only succeeded a second time , at one cent more, when people realised it is not going to be offered at much higher ever again...... this episode makes activist Mano, who led the fight for twenty or thirty cents more, looks very stupid..... certain people doesn' t do enough research, or dont have " connections" to " black market" sources....... Ok, juz to let go a bit more, since the " rumors" broke, someone, or some people also had been accumulating.... so far, I think, about half a millions shares, .... and because there were very few sellers, they have to buy higher, forcing the SBB higher.... this scenario is only possible because if the rumors know of a " high" offer..... but but as in ALL RUMORS, it may not be true, or stingy Ms Tan might juz call it off...... dyoddd please, as I said this is a talk song thread, or to show off thread.... I often talked a lot because I like to talk song mah... UMS, Frenken and AEM , Venture on their way to record high soon inspite of a red DOW last Friday |
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Sgvale
Supreme |
03-Jan-2026 19:46
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So fast 0.50 liao. Not long ago still trade at 0.34 |
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bechaotic
Member |
03-Jan-2026 19:13
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Why would there be an offer when the share price has climbed up so high? If Janet or any substantial holders really want to privatise, they could have done that when share price was in the 30s. Or maybe 20s since the 52-week price range is between 20 to 50 cents. |
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aragosta
Supreme |
03-Jan-2026 14:10
Yells: "BBs never say why when they buy; never tell when they sell" |
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Will A-Sonic make a privatisation offer or do a capital deduction according to persistent rumors....... Saw this report lying at some coffee shop, I think it was meant for private viewing only, thought I share it here.... .... true or not true, up to you to believe..... as I said, this is a " talk song" thread ... it' s probably too late for you to join in the party even if you wish to because the stock has gone too far since we started talking..... remember, this is a very illiquid stock, if you go in, it' s very very difficult to come out..... read it any way, to feel what' s frustration is like: if it is true, you' ll feel frustrated of not enjoying at least a 50% gain if u have not join in......if you have joined in, and turns out not true, you will feel trapped forever... ======== Based on current 2026 market data and A-Sonic Aerospace' s robust financial position, a privatization offer would likely need to be positioned between S$0.59 and S$0.70 per share to be attractive to minority shareholders. As of January 3, 2026, the company continues to trade significantly below its liquidation and book values, despite its " cash-rich" and " debt-free" status.
Key Valuation Benchmarks (as of Jan 2026)
To determine a fair offer price, three primary metrics serve as the " floor" for negotiations:
Estimated Offer Price Range
Recommended Strategy: To ensure a high success rate (90% acceptance), the offeror should aim for a price that exceeds the NAV of S$0.589, likely settling around S$0.65.
A comparison of recent privatization premiums for other cash-rich SGX-listed companies to refine this estimate Recent history for cash-rich, undervalued Singapore Exchange (SGX) companies shows that privatization offers often involve significant premiums over the market price, sometimes exceeding the stated Net Asset Value (NAV) to attract minority shareholders. Recent SGX Privatization Premiums Offers generally range from a modest premium to significantly higher, depending on the underlying value of assets and the offeror' s desire to secure full control quickly.
Key Insights
Given these precedents, an offer for A-Sonic at or above NAV, with an added premium for control, is essential for a successful privatization.
============= The high ownership stake of Janet Tan (over 63%) and recent company share buybacks have several direct and indirect influences on a potential privatization, the offer price, and minority shareholder perception.
Influence on the Decision to Privatize
Influence on the Offer Price
Influence on Shareholder Perception
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Why the Price is Rising: Privatization vs. Capital Reduction
The recent surge from S$0.36 in early December 2025 to S$0.50 by January 2, 2026, is likely fueled by these dual rumors:
The " Conflict" for Minority Shareholders
While the market might accept S$0.60, savvy investors may feel " short-changed." Since the company is debt-free and holds S$0.54 in cash per share, a S$0.60 offer effectively values the entire operating business, global logistics network, and future earnings at only S$0.06 per share.
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Sgvale
Supreme |
23-Dec-2025 13:35
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Offer coming. 0.60 ? |
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aragosta
Supreme |
23-Dec-2025 13:01
Yells: "BBs never say why when they buy; never tell when they sell" |
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Stock has been pretty resilient there few days, with very few sellers, so company has to do share buybacks at higher price a..... today went as high as 0.445..... Words from coffee shops, not the black market people, is that company could be doing a capital reduction exercise....if true, would be very fantastic for long term shareholders.... even if it decides on just a one third payout form its capital, each shareholder could get as much as 15 to 20 cents per share...... as I said, this is a talk song thread, not an alert to buy.......you guys should be paying attention to it when it was 28-32 cents when I opened table and started talking...... |
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aragosta
Supreme |
16-Dec-2025 10:40
Yells: "BBs never say why when they buy; never tell when they sell" |
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These few days..... Company didn' t buy back Jenny didn' t buy back insiders didn' t buy..... Means SOMEONE must be buying Price up 40% since last month Yesterday even touched $0.465......... BREWING!??! plse note... this is a feel song type of thread, not alerting any one to take action |
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aragosta
Supreme |
11-Dec-2025 01:17
Yells: "BBs never say why when they buy; never tell when they sell" |
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The number of issued shares is so low, only 100 millions..... with the lady boss owning more than 60% of the shareholding and with a net cash pile of almost $60million , she can easily afford to offer you at NAV to take the company private, and still have spare money to buy a nice landed property for herself....... the company is doing share buyback almost every day ..... this is almost the first tell sign, it is brewing something ...... remember the company itself is no Mickey mouse..... it' s clientele included almost all the top airlines in the world..... |
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kepoh88
Veteran |
02-Mar-2025 01:13
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Yes, read the result yesterday,this lady CEO is so cool, excellent. This is a hidden gem. Singapore may lost another gem after Dyna-Mac to foreigner if not careful. |
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