HPHT – My tainted view of FY results

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AppId is over the quota

Market has given HPHT the thumb down for it Q4/full year results.

NPAT and NPAT attributable to unitholders for the 4th quarter was 34% and 47% lower than last year. It seems like operations are deteriorating. First some number crunching.

1) OCF is 5.1 billion HKD compared to 4.4 billion a year ago. Q4 OCF is 1.4 billion.

2) Yantian did show better throughput of about 1% but is offset by the 12% decline in HIT ports.

3)   There were several one-off items, below are the items and the amount

a) Expenses incurred for acquisition of ACT; est. 110 million HKD

b) Additional interest expense due to refinancing of loans; est 7 million

c) One-off concession to liners due to the disruption of HIT ports due to strikes; preliminary calculation – 600K

d) Currency loss/gain- I would not classify it as one-off

4) recurring higher costs

-> …

Tagged as: Uncategorized

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Book Review: The value investors: Lessons from the world’s top fund manager (Part 1)

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The value investors: Lessons from the world’s top fund manager (Part 1)

Author: Ronald W. Chan

Walter Schloss (Walter & Edwin Schloss Associates)

“I learned that if I can simply survive in the market, just like surviving in the war, and not lose money, eventually I will make something”

“The best way to invest is to lay out rules which, if followed, would reduce the chance of loss”

“Nothing terrible happening to you is a profit”

“Understand ones strengths and weakness… When you have made a sound decision, make sure you have the courage to stick to it”

Strategy:

-         Finding net-nets

(CA – Liabilities) / total share outstanding

-         Stocks selling below their book value

-         Buy assets instead of earning since assets don’t change quickly unlike earnings

-         Diversify (50 – 100 stocks)

-         Doesn’t worry about macro factors, or the underlying business, but whether the stock is undervalued

…

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Vicom – Steady Results for FY13 & Outlook Ahead

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AppId is over the quota
Vicom Ltd has just released their FY results yesterday evening which I thought was decent.Vicom’s revenue grew 8.1% year on year to $105m while profits grew 7.7% higher at $28.4m. Considering the company’s activity slowdown in the past year, this is decent numbers we are talking about.The company’s cash flow from operations (CFO) has increased by about 7% to $32.5m while Free Cash Flow (FCF) for the year was at $28.6m. The management has declared a higher final and special dividend for the year at $0.081 and $0.064 compared to $0.075 and $0.032 respectively in 2012, giving a 23.6% increase in dividend growth year on year. Dividend payout remains at slightly below 60% for the year which means that the company gets to retain the rest of the $12.5m which …Read the full article ?

DBS 4.7% preference shares redemption

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AppId is over the quota

I was alerted this morning by a notice from DBS to redeem the 4.7% preference shares. It’s here. My first thoughts are that I haven’t even got the interest yet from the preference shares and now they are redeeming it?!

Upon closer examination, I realised that they are redeeming back another preference shares, one with the same coupon interest of 4.7% but not listed in mainboard SGX. This one that they are redeeming is the 250k per bond one.

A few issues:

1. In the prospectus for that preference shares, they noted that the first call date is 22-Oct-2020. Then of course, they also put in a clause that said that they can change the early redemption date under this nice technical name of “Change of Qualification Event”. And this notice posted by SGX is that such a change occured and they are now going to have an …

Tagged as: Bonds

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Change Bait???

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AppId is over the quota

Catch no fish now. 

Time to change bait?

STI back above 3,000

Plenty of cash available for baits. Income fish is easier to catch.They said no action is also an action; but there will be an opportunity cost to it.Counting the opportunity cost ….What is likely to happen on 31 Dec 2014? …Read the full article ?

Singapore Shipping Corp–The replacement ship and third quarter

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Nothing much to say about the business. You can read about it over here:

Singapore Shipping just announced their third quarter results. You can read the announcements here

Third quarter results was better than last year. The main difference being the contribution of Cougar Logistic’s assets. This was offsetting the loss in earnings this year  due to dry docking. Ships do need to be maintained to keep them tip top in the long run. For the ships they can be dry dock every 3 –5 years depending on the conditions. These are loss earnings.

It looks like we will hit USD $ 8.2 mil in profits for the full year or  USD $1.8 cents in EPS which is a 10% earnings yield at the price of SGD $0.225.

…

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