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Friday, May 11, 2018

POSH

Posh - NAV of 48.6 cents. Net Loss of 292m for FY 2017. Negative EPS.

1Q 2018 has shown great improvement to narrow down the Net Loss to almost half as of last year.


Total revenue increase from 34m to 70m.
Net Loss is lowered from 18m to 7.1m.








PACC Offshore Services Holdings Ltd. provides offshore marine support services worldwide. The company’s Offshore Supply Vessels segment operates a fleet of mid to deepwater anchor handling tug supply vessels, which offer towing and positioning of drilling rigs, transporting drilling materials, and other equipment services; and platform supply vessels that transport drilling materials and supplies to drilling rigs and offshore production platforms, as well as pipes and other materials for construction of marine structures or pipelines. The company’s Transportation and Installation segment supports marine contractors in the construction and maintenance of oilfield infrastructure and pipelines. This segment operates anchor handling tugs for cross-ocean towing, and transporting large marine structures from the builder’s yard and installing them in the oilfields; and large marine structures, and ballastable tank barges and tugs for transporting construction materials and subsea pipes. Its Offshore Accommodation segment owns and operates vessels that offer accommodation, transportation, and hospitality services for workers in oilfields. The company’s Harbour Services & Emergency Response segment owns, operates, and manages harbor tugs and heavy lift crane barges for supporting harbor towage operators and providing heavy lift services to shipyards; and provides firefighting, salvage, wreck removal, emergency rescue, and oil spill response services to vessels. The company also provides services to control pollution from oil and chemical spillage, as well as to protect the marine environment; ship management services; and support services for water transport, as well as rents and leases ships. It also charters barges and boats with crew. It operates a fleet of approximately 100 offshore vessels. The company was incorporated in 2006 and is headquartered in Singapore. PACC Offshore Services Holdings Ltd. is a subsidiary of Kuok (Singapore) Limited.


From TA point of view, it is having a Reversal play candlestick chart patterns.
Looking good to re-attempt the recent high of 34.5 cents.

With Oil price hitting above US70 per barrel, this counter may likely benefit . Short term wise, it may likely continue to trend higher.






Crossing over with ease + good volume, that may propel to drive the price higher towards 39 cents then 40 cents with extension to 46 cents.

Look at the Monthly chart, it may have found the bottom! Likely to see it rocket up any moment.


Not a call to buy or sell.
Please do your own due diligence.


China Sunsine

China Sunsine - has reported an excellent set of 1Q result for 2018.

Net profit rises 161% to RMB149.5m versus RMB57.2m last year.

EPS rises from RMB0.1232 to RMB0.3040, an increase of 147%. What a spectacular achievement.







A Net Net Position company whereby the total current assets value is almost more than 3.5x of the total current liabilities .


The company has a Net cash per share of S$0.21.



China Sunsine Chemical Holdings Ltd., an investment holding company, engages in the manufacture and sale of rubber chemical products in the People's Republic of China, rest of Asia, the United States, Europe, and internationally. The company offers rubber accelerators, anti-oxidant agents, vulcanizing agents, anti-scorching agents, and insoluble sulphur used for the production of tires and other rubber related products, such as shoes, belts, and hoses. It is also involved in the production and supply of heating power, including preparation and implementation of the project; and hotel and restaurant business. The company offers its products under the Sunsine brand name. It primarily serves the tire companies. The company was incorporated in 2006 and is based in Singapore. China Sunsine Chemical Holdings Ltd. is a subsidiary of Success More Group Limited.



 First, we look at the compounded annual growth rate (CAGR) in revenues for China Sunshine for the past 5 years from 2013 to 2017.

  Total Revenue - is the sum of cash inflows, increase in operating accounts such as receivables and occasionally, unrealized gains generated in the course of Company's Business activities.

 Total revenue has been increasing in double digits growth of almost 50%(CAGR) which is superb. The total revenue has grown from $353M to $562m.

 Next, we are looking at the Net Income which is growing at a multiple of almost 4 times which is $16M from 2013 to a whopping $70.1m for 2017.


Now , we are going to take a look at the Normalized diluted EPS - Normalized Net Income divided by the diluted weighted average share outstanding. It is growing at a CAGR % of 40% which is amazing from 3.3 cents from 2013 to 12.8 cents from 2017.


Next on to their efficiency. China Sunsine's return on assets (ROA) and return on equity (ROE) have maintained well from 2013 to 2017. In fact, I looked at their past trend these two return Metricsand they have maintained well at current levels of ROA (above 25%) and ROE (above 22%). We must realise that it is not easy to maintain the ROA and ROE in any business while it is growing it's assets and shareholders' equity through time. To be able to maintain the same level or even increase the level of ROA and ROE would mean the business has high efficiency. China Sunsine justdemonstrated their high efficiency in their businesses. If they can continue to maintain these same levels of returns, I will be even much more impressed with them.


ROA - is a measure of company profitability relative to total assets. It is calculated by dividing Tax Effective EBIT ( earning before interest and tax) by average total assets over a twelve months period.

ROE - is a measure of company profitability relative to total equity. It is calculated by dividing Tax Effective EBIT ( earning before interest and tax) by average total equity over a twelve months period.


Now on to their liquidity. We see that China Sunsine just got much better at their cash conversion cycle. Now on to their liquidity. We see that China Sunsines just got much better at their cash conversion cycle. The number of days in their cash conversion cycle has decreased significantly over the past 5 year meaning that it takes them much lesser time in number of days to convert cash on hand into even more cash through their operations.he number of days in their cash conversion cycle has decreased significantly over the past 5 year meaning that it takes them much lesser time in number of days to convert cash on hand into even more cash through their operations.
It is taking lesser nos of days to collect the cash from 121 days to 101 days.

We now look at how their balance sheet has changed over time.. I will tabulate the comparison of some important metrics between close to 5 years ago (2013) versus latest financial report (2017).

Current ratio = 1.67 (2013) vs 3.69 (2017) . It measures the company's ability to cover current debts with current assets.It it calculated by dividing total current assets by total current liabilities.

Quick ratio = 1.30 (2013) vs 3.14(2017). It measures the company's ability to cover current debts with liquid current assets. It is calculated by dividing the sum of the cash, short term investments, and account receivable by total current liabilities.

Net Profit Margin = 4.53 (2013) vs 12.46 (2017)

EBITDA Margin = 11.61 ( 2013 vs 21.14 (2017)

I also noticed that they are now a net net company with their current assets more than their total liabilities. 
Total Current Assets - $292.607m vs Total Current Liability of $79.139m.

The Operation cashflow has a great improvement from $27.59m to $79.37m.

Net Change in Cash inflow from $7.11m to $45.56m







I have roughly workout the intrinsic fair value for EPS for past 4 years (2013 - 2017) with CAGR of 40% and discount factor of 25% to come up with a value of $2.51.
I would further factor in a further discount of 20% i.e.$2.51 X 0.8 = $2.00.

The current price of $1.57 may present a further upwards potential of 27% to reach $2.00.

If using the Cash flow to work out the intrinsic value for past 4 years with CAGR of 50% and a discount factor of 25% we may roughly derive the fair value of $1.828.
Let say we factor in another 15% discount which is $1.828 x 0.85 that would give us a estimated fair value of $1.56.

The current price of $1.57 is trading at full value of $1.56 if investor is going to base on the Cash flow intrinsic value.

It might be good to exercise with due care.

From TA point of view, it is now on a uptrend mode patterns.
After going ex-dividend of 2.5 cents a few days ago, it has managed to continue to trend higher. This is rather bullish!



Looks like it may likely re-capture the recent high of $1.60 and continue to rise further.

Not a call to buy or sell.

Please Dyodd

Thursday, May 10, 2018

Genting

Update - 17th May 2018

Genting Sing - From TA point of view, It is rather bullish!
The current price of 1.22 is above its 20,50,100 & 200 days moving average, this is rather positive.




After hitting the high of 1.33 on 15th May, it is now taking a breather. Looks like it may likely move up to re-capture 1.33 and trend higher towards 1.36 then 1.41.

Not a call to buy or sell.

Please do your own due diligence.



*Genting Sing's* net profit rose 3.3 per cent to $217.2 million in the three months to March 31, it said yesterday.

This came despite the absence of a one-off gain of $96.3 million from the disposal of the group's investment in South Korea in the first quarter last year.

Excluding the one-off gain, the year-on-year growth in net profit after taxation would have been 91 per cent. Revenue rose 15.1 per cent to $675.1 million from the previous year.

 The increase came on the back of healthy growth in volumes across all major business segments


Stocks traded higher on Thursday following the release of weaker-than-expected U.S. inflation data.



The Dow Jones industrial averagerose 150 points, with Caterpillar as the best-performing stock in the index. The S&P 500 gained 0.5 percent, with health care and tech rising 1 percent and 0.8 percent, respectively. The Nasdaq compositeadvanced 0.6 percent.



The Labor Department said before the open its consumer price index rose 0.2 percent in April, with economists polled by Reuters expecting a 0.3 percent bump. The lighter-than-forecast number eased concerns about the Federal Reserve tightening monetary policy at a faster rate than the market is expecting.



(Cnbc.com)
1st quarter result is out. Gross profit is up 32% to $343m.








Net profit is up 3% to $217.186m.

EPS increase 20% from 1.5 to 1.8 cents.



Looks like a pretty good set of results.

Not a call to buy or sell.


Genting Sing - On Friday the Casino bill approved by Japan govt, heads to Diet. Fabulous News! This may likely drive the price higher seems positive to me!



XD on this Monday 30 April .Let's see it will be able to maintain or close unchanged as per Friday closing price of $1.18.



The Japanese government endorsed on Friday a bill setting the broad regulatory framework for the establishment of a casino industry in the country. The document – known as the Integrated Resorts (IR) Implementation Bill – will now be submitted to the Diet, the country’s parliament, for voting. quote:

https://www.ggrasia.com/casino-bill-approved-by-japan-govt-heads-to-diet/



 Also CIMB says : “We estimate 1Q18 adjusted EBITDA was $297.6 million (up 5% y-o-y and up 17% q-o-q) on the back of higher FY17 average market share of 40% for both the VIP and mass markets,” says lead analyst Cezzane See in a flash note on Thursday.

https//www.theedgesingapore.com/genting-singapore-likely-report-better-1q-higher-market-share-cimb




Genting Sing (17th April)- A nice attempt to take-out the psychological price level of $1.20, Looks rather positive. The bullish patterns was being triggered from 6th April 2018 whereby we have witnessed a super wide thrust bar couple with high volume. It manged to close well + higher of 6 cents to touch $1.14 on 6 April. This is generally positive and may likely continue to drive the share price higher.



The momentum has continued to play out and we have managed to see the price rises to hit $1.20 today - 17 April 2016.

Macd has been nicely rising and it may likely provide further indication that the share price may continue to trend higher.

Short term wise, I think it may likely re-conquer $1.20 level. Crossing over of $1.20 with ease + good volume that may propel to drive the price higher towards $1.25 then $1.30 with extension to $1.35 and above.


NAV of 60.7 cents.
Rolling EPS of 5.2 cents.
Rolling PE of 24 times.
Dividend of 3.5 cents.
Yield of 2.94%.

I think the price may continue to trend higher towards XD date of 30th April.


Also any winning or good news about the Japan casino license may likely provide the next catalyst to drive the share price higher.

Not a call to buy or sell.
please do you own due diligence.

Trade/Invest base on your own decision.




Genting Singapore PLC, an investment holding company, engages in the development, management, and operation of integrated resort destinations in Asia. Its integrated resort destinations comprise gaming, hospitality, MICE, leisure, and entertainment facilities. The company primarily owns Resorts World Sentosa, a destination resort, which offers a casino, Adventure Cove Waterpark, S.E.A. Aquarium, Universal Studios Singapore Theme Park, MICE facilities, hotels, Michelin starred restaurants, and specialty retail outlets. It is also involved in the operation of casinos; and provision of sales and marketing support services to leisure and hospitality related businesses, as well as in the investment activities. The company was formerly known as Genting International PLC and changed its name to Genting Singapore PLC in April 2009. Genting Singapore PLC was incorporated in 1984 and is headquartered in Singapore. Genting Singapore PLC is a subsidiary of Genting Overseas Holdings Limited.

Wednesday, May 9, 2018

Hi-P

Hi-P : The company has been buying back share continuously for the past few days. Buying back share prices ranging from 1.38 to 1.50.
This could be that the company is viewing the current share price is trading below its fair value.
The buying back is also a good way to support the share price and it may also enhance its NAV for this counter.



From TA point of view, we had a very encouraging sign of a nice Reversal patterns being formed yesterday as reflected on the chart.




On 8th May, it has gone down to touch $1.36 whereby Bull is able to take control and close well at 1.43. A bullish candlestick has been formed.This is rather bullish!

The confirmation was follow-through yesterday whereby it has managed to conquer $1.46 the high of previous day which is very positive . It close higher at $1.50 , couple with quite a high volume, this may provide further indication that fund/BB may have coming back to buy up the share price that has been overly sold down from 2.79 to the low of 1.36.



I am seeing a nice recovery play chart patterns.



The first obstacle is to challenge and cover the Gap at about $1.62 level in order to rise further.
Breaking out of $1.62 with ease, that may likely propel to drive the price higher towards $1.70 level and then to challenge the $1.82 level which is also coincide with its 20 Days & 200 days moving average.
Not a call to buy or sell.

Please do your own due diligence.



Latest 1Q result for your reference. Gross Profit increased 13% to reach 37.8m. 
Net Profit increase marginally of 1.3% to 12.1m after factoring the foreign exchange loss of 13m..





Hi-P International Limited operates as an integrated contract manufacturer serving the telecommunications, consumer electronics, computing and peripherals, lifestyle, and medical and industrial devices industries. The company operates through three segments: Precision Plastic Injection Molding; Mold Design and Fabrication; and Provision of Sub-Product Assembly and Full-Product Assembly Services. It manufactures and sells molds and special tools, related housing appliance plastic components and equipment, and water treatment equipment; plastic components and plastic product modules; mold base and components; electric components and electronic communication equipment; in-mold decoration lenses; precision stamped metal components and precision tools; and metal and non-metal stampings, as well as provides spray painting, engineering support, maintenance, and technology consultation services. In addition, the company engages in the manufacture, wholesale, import and export, and sale of electronic telecommunication devices, housing appliances, automated equipment, and related components. Further, it manufactures and sells trays, mobile phones, telecommunication products, digital cameras and related electronic products, and electric toothbrushes; assembles coffee machines and parts, as well as provides related maintenance and after-sales services; and offers investment and management consulting services. Additionally, the company engages in the assembly and provision of ancillary value-added services, primarily surface finishing services. It has operations primarily in the People's Republic of China, Singapore, Malaysia, Thailand, Europe, the United States, the rest of Americas, and internationally. The company was founded in 1980 and is headquartered in Singapore.

Wilmar Intl

Went up to touch the high of $3.27 but was being sold down end of the day to close at $3.21 . Down 4 cents from $3.25 yesterday closing price.

It seems like some insider news being leaked prior to result was released after trading hours.

Total revenue was up 5.7% to 11.116m.Net profit was down 37.2 % to US183.4m , EPS of 3.2 (US) due to lower palm oil price and sugar ops loss.

Ops cash flow was healthy generating US1.83m.

NAV of $3.40.

Not a call to buy or sell.

 Wilmar - touch $3.26 again. Looks rather bullish! Breaking out with ease may sail smoothly towards $3.30.

MACD is rising that may likely provide further indication that the share price may likely continue to trend higher.





Price is hovering above the SMA lines. High chance for a nice breaking out moment that may take the price higher to 3.30 and $3.40 and above.

Not a call to buy or sell.
please do your own due diligence.




Wilmar Intl - NAV $3.304, Rolling EPS 0.306, PE 13.721. Final dividend of 7 cents for FY 2017.



Together with Interim dividend of 3 cents. Total dividend is 10 cents. Yield is 3.2% at $3.12 per share. The recent share buying back by company director of 2.44m share at $3.103 per share & 79300 share at $3.18 per share may likely be a boost of confidence.. I have jeep small lots at $3.12 today.


.I am buying for the future growth and may be the listing of their China ipo.. dyodd. Reply to @Sporeshare : Ah.....This is the golden big question! If Wilmar is really pushing for an IPO of their China operations in Shanghai exchange, I think can look at other similar commodity giants that are already listed in Shanghai exchange to see where are they trading now in their price to earnings multiple. That will give us a good gauge what types of multiples we are potentially looking at. Surely, we cannot expect Wilmar to list their China operations at too low a gap from their peer competitors on Shanghai exchange. If that is the case, why still push for IPO listing if the valuation it would fetch is not attractive at all? If want to unlock value by the IPO, might as well unlock it well.

 I attached an article from TheEdgeSingapore which an analyst pegs a target price of $4.10 based on an attractive valuation now, strong crushing margins so far in FY18 and the anticipated listing of its China unit. You can read through the article to see the rationale put forth by the analyst. In any case, we are not trying to be precise in forecasting our target price.



 The analyst puts forth a possible listing of the China unit at up to 23 P/E ratio on the Shanghai exchange. Based on good common sense and my previous sharing, Wilmar's share price definitely has all the good catalysts as we can see currently going for it to reach a higher price level. My previous estimated fair price of $3.18 is based on a worst case scenario. Unless we think Wilmar will eventually fail in all accounts of the prospected catalysts in having weaker overall performance this year and anticipated listing of it's China unit falls through, then worst case scenario may pan out. Thus, the downside as I can see on probability terms is low while upside has high probability of happening. Therefore, if you ask me, is $4 you quoted likely to reach in future? My answer is even if not reaching $4, I think the probability of the share price rising higher from current level in view of all these potential future catalysts is surely there. How about a $3.60 price in future based on my "anyhow" guess? I think that will be already at least a good perk of 11.5% share price gain if it really happens by this year end. $4.10 will be even more "shiok" with a potential return of 26.9% if it really happens within one year's time based on the analyst's target price in this article by

TheEdgeSingapore! I think it is a case of making either more or lesser returns from this bet here on Wilmar. As long as one does not chase at higher price if it should chiong but instead has already accumulated cheap in advance, one should be falling into the case of making more or lesser returns on this bet hopefully within one year's time frame. https://www.theedgesingapore.com/wilmar-kept-add-valuations-strong-crushing-margins-and-upcoming-listing-china-unit Wilmar International. The overall feel I have of this large agricultural international group is that it already has extensive and deep degree of reach in it's agricultural and related businesses in terms of many geographical regions they are in (about 50 countries as reported on their website with about 500 manufacturing plants worldwide) and also the entire value chain they are serving from upstream plantation and harvesting to mid stream processing and refining to downstream distribution and sales of their final products to consumers. On a one decade time frame, Wilmar International has compounded it's revenues at a CAGR of 10.3% which is respectable and not surprising considering how significant this group has grown over the years. It's operating income has compounded at a CAGR of 8.1% over the past decade. It's net income has compounded at a CAGR of 7.7% over the past decade. It's EPS has compounded at a CAGR of 4.1% over the past decade. Again, this looks like a moderate to slow grower over the past decade just slightly better than SATS that we looked at previously in terms of the growth in it's profitability. If we look at their past 5 years trend for the revenue, operating income, net income and EPS, there was a dip in all these metrics after FY12 onwards which only recovered in their FY17 results near to FY12 levels.




 qUOTE : I checked up the palm oil historical prices and indeed it confirmed my thinking that this dip over the past 5 years which only recovered recently was probably correlated to the drop in palm oil price over the past 5 years. Currently, palm oil price has recovered from the lows but still it is now only two-thirds of the last peak price reached in 2012. The big question is whether the palm oil price will continue to recover towards the last peak price reached in 2012 going forward or continue to hold around current price and do a ding-dong in price, sometimes up and sometimes down but no clear up direction for the next few years? This I do not know as I think only insiders of the palm oil industry will know the dynamic factors of global supply and demand affecting palm oil prices. I consider this as outside my circle of competence. But looking at palm oil historical prices, it sure looked quite volatile to me and hard to grasp.{ jeremyowtaip} As such, the various trend on their returns on assets (ROA), returns on equity (ROE) and returns on invested capital have also dipped over the past 5 years and have almost recovered in the latest set of FY17 results to close to same returns as FY12. However, the various returns are still single digits returns in %. For example in FY17, ROA is now around 3% while ROE is around 7.6%. If we stretch further backwards to compare their current returns against one decade ago which the various returns were higher in FY07 of ROA around 6.7% while ROE was around 13.8%, we can clearly see that Wilmar is now not a high return beast as it used to be a decade ago. It seems that it is not easy to attain the same returns as before anymore now that Wilmar has outgrown so much that at it's current size it cannot generate the same returns on assets and shareholder equity as before. Now again, the big question is how will the various returns going forward in future years be like? Will it remain around same level as now or become lower? Size is one thing which makes it increasingly difficult to generate the same level of returns. What if they can grow their revenue and profits further in future years should palm oil prices recover? Maybe there could be a chance to improve their returns though going back to double digits returns likely will be difficult.




This would mean they have to increase their current net profits by another approximately 120% at current size of total assets for example to go back to previous decade ago record of ROA. A jump in 120% increase in net profits at current level of USD 1.22 billion for WIlmar next year based on core businesses and not through some non-recurring disposal of assets? One must be joking to ask the dog to jump over the high wall! The financial leverage of Wilmar has been steady over the years managing their debts level and balance sheet well. Cash flows wise though can be volatile seems to still generate free cash flows at least enough to pay a dividends which has grown over the past decade. Their CAGR for EPS over the past 5 years has been about 0% even though 10 years CAGR was 4.1%. I will factor in a best case scenario and a worst case scenario in estimating their fare share price value taking into account all the above mentioned details of this comment. If we make a best case scenario of Wilmar continuing to grow it's current EPS at CAGR of 4.1% going forward, then using my method of estimation, their fare share price will be $4.25. However, if we make a worst case scenario of a CAGR of 2% on their EPS going forward for next business cycle (7 years), then their fair share price will be $3.18. This is mind-blowing! It all depends on the performance of Wilmar going forward. If they can parallel their historical compounded growth rates on their EPS, then it will be a bonus to buy their shares now at cheap cheap share price! However, should they grow at a lower forward CAGR about somewhere half in % terms on their EPS, then we are exactly getting Wilmar now at fair value $3.18 and it will not be cheap now to buy! This really requires an investor's forward opinion on how Wilmar will perform for next 7 years cycle to decide whether to put in his or her stake at current price. Will this be a value buy or value trap? Hmm Wilmar International has since diversified their commodity businesses over the years into business segments including tropical oils, oilseeds and grains, sugar and biofuels and other investment businesses. This horizontal diversification and vertical integration tapping at all levels of the value chain has allowed Wilmar to grow to it's current humongous size despite being in a general low profit margin agricultural commodity businesses. I forgot to mention another important piece of bright spot for Wilmar! I read up in it's most recent financial report that they are considering looking at an IPO listing of their China rice, flour and related consumer products operations in China.


http://sbr.com.sg/agribusiness/news/wilmar-eyes-china-expansion But things are still in the early stage of assessment. If that were to happen, imagine the craze of investors rushing in for this potential spin-off of their China businesses which will unlock value for shareholders. Then, buying at current share price is now cheap if we factor in this potential unlocking of value from such a future proposition which will increase their profits and returns by some substantial jump if that were to happen some time down the road. It may happen as early as 2019 based on a write-up by Singapore Business Review. Hmm....I am now starting to get somewhat interested after knowing this. Some info on Shree Renuka Sugars I found out. It is the largest raw sugar producer in India and Brazil. As what the others have pointed out, the management was too aggressive in their overseas expansion bet in South America which didn't go well chalking up huge debts. This is because after year 2012, the sugar prices dropped from their peak reached and also correlated to Shree Renuka's operating losses from 2013 to now as sugar prices remain lower and now only recovered to two-third of the peak price reached in 2012. Wilmar has this chance to acquire a controlling stake in Shree Renuka Sugars because the latter chalked up so much debts from their aggressive expansion to South America market which didn't pan out well. Thus, during this current debt restructuring exercise, Wilmar can take this opportunity to acquire a controlling stake in the equity of India and Brazil largest raw sugar producer Shree Renuka Sugars. quote :I will need to examine the financial strength of Wilmar whether they can take on this acquisition without risking themselves too much. But, the offer to acquire a controlling stake in Shree Renuka Sugars by itself sounds to be a wonderful move. If sugar prices should continue to recover to previous peaks in 2012 and earlier, Shree Renuka Sugars may be able to return to better profitability again. The return on invested capital for Shree Renuka Sugars before they went downhill in 2013 are still good. If Wilmar after acquiring Shree Renuka Sugars can turnaround this largest sugar producer in India and Brazil successfully, it will be very good for Wilmar to further expand their sugar business significantly.




PS: Shall investigate whether Wilmar is strong enough to take on this acquisition without stressing their balance sheet too much. Get back to you again. I did an estimation on the required amount for Wilmar to make the acquisition of shares in Shree Renuka Sugars based on regulations of Securities and Exchange Board of India after Wilmar converted it's convertible preference shares to common equity shares and triggered the regulations of the exchange to make an offer to acquire up to 26% of the emerging share capital of Shree Renuka Sugars. The cash outlay needed to acquire up to 26% of the emerging share capital of Shree Renuka Sugars is approximately USD 124 million. Wilmar has about USD 2.96 billion in cash and equivalents plus other bank deposits. It's current ratio stands at around 1.15 based on FY17 financial report. This acquisition requires very small cash outlay for Wilmar as compared to the cash and bank deposits it now has. However, after the acquisition of a controlling stake in Shree Renuka Sugars has been completed, I am not sure how much remaining debts of Shree Renuka Sugars Wilmar will carry as some of the debts owed to the lenders have been converted to equity in Shree Renuka Sugars. I checked up Shree Renuka Sugars balance sheet as at Sep 17. They carried a total of about USD 1 billion worth of total liabilties on their balance sheet. With some of the borrowings of Shree Renuka Sugars converted to equity, the total liabilities should be lesser than this figure. Thus, with Wilmar's existing USD 2.96 billion in cash and equivalents plus bank deposits and if we consider Wilmar's current assets of total about USD 22.6 billion, Wilmar definitely has much more than enough resources to cover the liabilities of Shree Renuka Sugars even after Wilmar completes this acquisition of a controlling stake in it.


 There is no concern at all in acquiring a controlling stake in Shree Renuka Sugars for Wilmar. Instead, Wilmar would have gotten this India and Brazil largest raw sugar producer under it's wings.(jeremyowtaip) But having said that, those few stocks we discussed about like Wilmar and Thai Beverage are good stocks to hold for the longer term as there are future potential catalysts in them. The potential listing of China operations for Wilmar which will unlock value for shareholders and may re-rate share price higher. The future long term contributions to earnings and returns from the new acquisitions for Thai Beverage will outpace the cost of their initial investment. The market position of Thai Beverage has strengthened as a leader in this Southeast Asia region with these acquisitions. The fair share price of Thai Beverage I cannot determine at the moment. But, in future the direction of the share price can only go one way which is up as the new acquisitions start to increase the overall profitability and cash flows further while the debts get slowly reduced over time. For SATS, it is a steady slow grower. Just need a bear market to grab it cheap at fair value or lower than fair value and see the price will bounce back and trade higher than fair value due to so many favourables surrounding it which may continue for a very long number of years ahead.

Duty Free Intl



I think this could be a good piece of news for Duty Free Intl.

Quote:  Malaysia' veteran leader Mahathir wins shock election victory An alliance of opposition parties spearheaded by Mahathir Mohamad won Malaysia's general election on Thursday, setting the veteran strongman on course for a return to the Prime Minister's Office he occupied for 22 years.


 He will become the oldest elected leader in the world at 92 years old. Few had expected Mahathir to prevail against a coalition that has long relied on the support of the country's ethnic-Malay majority. (Cnbc.com)


 Duty Free International Limited, an investment holding company, trades in duty free merchandise under the Zon brand in Malaysia. The company wholesales, distributes, and retails duty free and non-dutiable merchandise, including imported duty free beverages, tobacco products, chocolates and confectionary products, perfumes, cosmetics, and souvenirs. It operates duty-free retail outlets/complexes and trading outlets located at various locations in airports, seaports, ferry terminals, border towns, and tourist destinations. Duty Free International Limited is also involved in the development of resorts; property investment and management activities; cultivation of oil palms; and sale of fresh oil palm fruit bunches. The company was founded in 1978 and is based in Singapore. Duty Free International Limited is a subsidiary of Atlan Holdings Bhd.


The share price has been falling off from the high of 44 cents to a low of 22 cents on 29 Mar 2018.Down 50%. Which is deemed as overly done. The selling down may be due to the pending court case for tax related matter. I think the total amount for the tax is about RM41m.For actual details pls refer to Sgx/company announcement . Looking through the announcement even if they have to include this tax amount their current cash-on-hand would be easily able to cover this tax amount. They have RM276.4m as reported on 9 mth financial results.


Looking through the Balance Sheets items: For one can notice the Current Assets has a total value of RM518.859 versus their Total Liabilities of RM107.513m. A Net Net position value of 4.83 times.

Their cash flow generation has been pretty healthy The average dividend for past years is about 1.8 cents . Which is giving a yield of 8.18% base on current price of 22 cents. As at to date the dividend being payout is 1.85 cents for first nine months . I think the company would be able to continue in paying out the dividend.. I am vested on this counter and would wait patiently wait for the announcement to be made known in the near future. Not a call to sell or buy. Pls do your own due diligence. (Trade/invest bas on your own decision)