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John Robert had difficulties answering Qn
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chinton86
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10-Jan-2008 20:03
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It seenms that the management is doing nothing to avoid the counter dropping.... |
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chinton86
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12-Nov-2007 18:46
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At least this type of stock is less volatile than others who can go up and sown more than 10cents per day. The yields had been promised to maintain the same or increase (High possibility) |
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Farmer
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12-Nov-2007 13:50
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Macquarie IIF CLSA research - Acquisiiton of Hua Nan Expressway S$1.08 - BUY Major acquisition MIIF announced the S$783m purchase of a 81% stake in Hua Nan Expressway, which will boost their Asian exposure in its portfolio to 36%. A major Asian acquisition had been widely expected following a series of divestments, most recently being the storage business TanQuid. While the acquisition is yield accretive, available cash flow from Hua Nan for distribution in FY08 will be constrained by accumulated tax losses. No change to our projected FY08 DPS of 8.70cps. Maintain TP of S$1.24 for now and our BUY recommendation. Investment numbers The S$783m acquisition comprises an equity portion of S$333m and debt of S$450m. This represents an EV/EBITDA multiple of 12.6x, versus the average trading multiple of 15.5x for comparable listed Chinese toll roads. MIIF will command a 81% interest, with 10% by the government body and another 9% by the previous sellers. The acquisition is expected to be yield accretive with high single digit yield and mid-teens IRR. Acquisition potential The acquisition is attractive, and is located in one of China?s fastest growing economic regions ? Guangzhou. The toll rates are set by the Guangdong government and MIIF?s investment case has assumed constant toll rate. Exclusive tolling rights expire only in 2026, and the asset has significant excess capacity to accommodate traffic growth, which has been growing by 13% CAGR since 2004. No major capex is required except for the routine maintenance, and overlaying of pavement every 8 years. Executing on strategy MIIF has executed on its strategy of focusing in Asia, by increasing its exposure from 8.5% in end of 2006 to 35.8% now. Currently, only 1 listed asset remains in its portfolio. This acquisition will bring its estimated drawn debt balance to S$281m, out of a total debt facility of S$700m, which will allow MIIF flexibility should it require to tap on more funds. Good yields Acquisition risk appears relatively muted, but due to accumulated tax losses, FY08 free cash flow for distribution will be constrained, with more cash flow increasing in subsequent years. The stock currently trades at 8% yield. 3Q07 results will be announced early next week, and we will review our numbers after that. For now, we maintain our projected DPS of 8.70cps and continue to recommend BUY on a TP of S$1.24, based on 7% FY08 yield. |
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Farmer
Master |
12-Nov-2007 11:27
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Appreciate your elaboration on the event! chinton86. I will surely take cash instead of share bcos that's my initial purpose of investing into Reits. According to your notes, I think the mgnt know for sure that all resolutions will pass thru' , holding SGM is just for formality as required by SGX. Their tactics now is to do swapping among their assets for maximum performance bonuses, therefore no need to raise more liquidity from the market. Moreover, the SD scheme which they've introduced will help to conserve some cash as shareholders may chose new shares instead of cash for dividends. But in the long run, it may dilute shareholder's value. As for the China Expressway buy, I doubt it's a good move as the maintenance cost will be high and most ExpWay in China are under utilize due to it's high toll charge as there's alway other alternatives like their old road - "GuoDao" which will be much cheaper if time is not an issue. I've been to China at least a dozen times and travel on their EW frequently. I notice that there are many depression -"pot hole" on the most right lane( take note that China's road practice L-H drive opp. with us) caused by heavy goods transport vehicles thus, forcing most vehicles to constantly stay on the left lane meant for overtaking. In addition, "under construction" sign is a normal it seems.Anyway, I'll continue to stay vested as long as the yield exceed my target and that's my bottom-line. |
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Pinnacle
Master |
11-Nov-2007 21:05
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For issuing share instead of money, it will be good if the share price is always going up. However, for REITs, its not known for fast share price appreciation, but they do give high dividend yield. The share price is normally moving up very slowly, but come down vey quickly in Singapore context. Hence, not sure is it really a good idea to take the share instead of cash in this case. |
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chinton86
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10-Nov-2007 11:41
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With the price expected to drop more on Monday and dividend is set to continue increase, the yiel is nearing the 10% yield mark.... For the presentation slide please click below http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_DB334BF2E55B10D44825738E0017B5F5/$file/MIIF_SGMPresoFINAL091107.pdf?openelement |
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chinton86
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10-Nov-2007 00:09
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They did not explain much on everything and seems like without going for the meeting, alll resolutions had been passed. In addition to the scripe dividend, they will issue shares in terms of money, for this i personnally feels good too....Company willl have more money to invest and we will get shares of MacQ without paying more. Dividend is expect to be more than 80 next finalcial yr. Shareholder can choose to receive divident in either share or cash...You have the choice...Not forced to take share compulsory. Its good! They confirmed that they wun sell any rights and will keep MacQ at this value of price. They will not want sharehlder to fork out more money nor wanting to sell more shares to public stating that the processing money cost will not be worth it. Its Good! This topic was raised when a handsome guy sitting in front of me ask "Why they dun raise extra cash thru public to buy more assets instead of selling away their Brussels Airport. |
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chinton86
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10-Nov-2007 00:02
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BTW, there are 2 person said that "China is famous for their "Foriegn" investment" and the whole floor starts to laugh off...Then when the second guy ask again y they should invest so much on the "Hua Nan expressway", that john robert gives a " Diao" eye look |
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Pinnacle
Master |
10-Nov-2007 00:00
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Did they explain how exactly how the "Scrip Dividend Scheme" work? What's your view? |
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chinton86
Veteran |
09-Nov-2007 23:33
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I feel that the old man ask alot qn that feel that he will go against the selling of the assets BUT......Hiaz.... |
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chinton86
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09-Nov-2007 23:29
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Sorry for the late reply... I personnally feels that John Robert had attitude problem and often can't answer qn from the floor. The food is only finger food and people is snaching like siao and therefor i dun borther to eat...As i looked baby face, when i say i'm a shareholder, they seems to give me the kind on look like i am a child.... cannot possibly be a shareholder. I'm the youngest there and there is 1 old person abt 60+ ask alot of qn and his englissh is liked better than be abt 100x i very "pei fu" him.\ When ask for voting, although without the voting being counted, the resolution should had passed, he forgotten to ask for people who is going against which should be a formality though it confirmed it is passed thru...He liked super nervous. BTW 1 of the director out of 5 on stage is "LATE" the dunno "Heng something de" Abit dissapointed on the board members....Hiaz....Muz never mind i juz keep the stock on my list after all i only gt 1 lot. |
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Farmer
Master |
09-Nov-2007 22:18
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I wanna go today but being held up. Can reveal more about the mtg? What do u think of this mgnt? Is all the resolution pass?
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Pinnacle
Master |
09-Nov-2007 21:51
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chinton, can you share more on the SGM? Btw, how's the food? 
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chinton86
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09-Nov-2007 21:13
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John Robert had difficulties answering Qn at the special general meeting today. In addition, after a vote for for resolution 1, he did not ask for those vote agaist till someone from the floor walk up the stage to inform him.... Is these factors cause the share price to drop so sudden? |
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