AF Global (formerly: LCD Global Investments Ltd)

(14-12-2016, 06:01 PM)bardsmanship Wrote: This thread should really be renamed AF Global and moved to the appropriate subforum.

Since the takeover, AF Global has been distributing significantly more dividends than it earns.
For FY 2015, EPS was only 1.07c, but a total of 3.50c of dividends/share were paid out.
Likewise, this year EPS for 9M 2016 adds up to only 0.55c, but management has already declared interim and final dividends/share of 2.25c.

Are the Koh brothers using the cash generated from this company to service debt in their main companies? Aspial in particular is quite heavily indebted... but why make an offer for 33c/share in the first place then?

Btw is AF Global stands for Aspial-Fragrance Global? 

Aspial leveraged to venture into Australia and so far has been pretty successful. They have currently 1.5bil sgd of sales locked in from Sg and Aus which will be progressively recognised till 2020. The amount of future money coming in is already more than their total debt. Latest quarter to quarter they have reduced 100mil of borrowings.

https://www.tropicnow.com.au/2016/octobe...world.html

Also after almost selling out Aus 108 and Avant, their next venture at Cairns(Nova City) seems pretty well received, already 20% of the units launched sold including two penthouse(Since Oct).


In my view, if we compare balance sheet and future money, Aspial retail bond seems to be a much better choice than Hyflux retail perp.

(15-12-2016, 10:36 AM)Scg8866t Wrote: Btw is AF Global stands for Aspial-Fragrance Global? 

I don't think that's the official name, but I have no doubt that's how the official name was derived.
Well it's good that Aspial is doing well... but now I understand even less why AF Global is paying out so much in dividends.

Selling slightly ~0.5% below book value, but realizing your translation losses eventually, which is a cool 10%.

The company will have excess cash even after repaying all its debt from this sale. I wonder what will they do with the excess cash? Buy more of Knight Frank? (if their JV partner wants to sell this cash cow) or more of Aspial Corp's retail bonds? 

PROPOSED DISPOSAL OF CERTAIN OF THE GROUP’S ASSETS IN THAILAND

5.1 Book Value and Net Tangible Asset Value. Based on the unaudited consolidated financial statements of the Group for the six months ended 30 June 2023 (“1H2023”, and such unaudited consolidated financial statements of the Group for 1H2023, the “1H2023 Financial Statements”), the book value and net tangible asset value (“NTA”) of the Disposal Interest is approximately S$61,313,000.

5.2 Excess of Aggregate Consideration over NAV of the Disposal Interest. Based on the book value of the Disposal Interest as set out in paragraph 5.1 of this Announcement, the amount of deficit of the Aggregate Consideration below the said book value is approximately S$353,000.

5.3 Net Profit and Estimated Net Loss from Disposal. Based on the 1H2023 Financial Statements, the net loss (before income tax, minority interests and extraordinary items) attributable to the Disposal Interest for 1H2023 is approximately THB13,266,000 (approximately S$516,000 based on an average exchange rate of THB1:S$0.0389 for the six months ended 30 June 2023). Based on the book value of the Disposal Interest as set out in paragraph 5.1 of this Announcement, and after considering: (i) the estimated taxes payable to the tax authorities in Thailand; (ii) the estimated costs and expenses related to the Proposed Disposal; and (iii) realisation of accumulated translation loss on the disposal of the Disposal Interest, the estimated loss arising from the Proposed Disposal is approximately S$6,001,000.

https://links.sgx.com/FileOpen/AFGL_Chap...eID=782677

(11-01-2024, 11:31 AM)weijian Wrote: Selling slightly ~0.5% below book value, but realizing your translation losses eventually, which is a cool 10%.

The company will have excess cash even after repaying all its debt from this sale. I wonder what will they do with the excess cash? Buy more of Knight Frank? (if their JV partner wants to sell this cash cow) or more of Aspial Corp's retail bonds? 

Hi weijian,

Based on their track record previously, I would not be surprised if they resume paying dividends again from some of the sales proceeds.

(11-01-2024, 12:26 PM)ghchua Wrote:

(11-01-2024, 11:31 AM)weijian Wrote: Selling slightly ~0.5% below book value, but realizing your translation losses eventually, which is a cool 10%.

The company will have excess cash even after repaying all its debt from this sale. I wonder what will they do with the excess cash? Buy more of Knight Frank? (if their JV partner wants to sell this cash cow) or more of Aspial Corp's retail bonds? 

Hi weijian,

Based on their track record previously, I would not be surprised if they resume paying dividends again from some of the sales proceeds.

hi ghchua,

You were spot on. In addition to the 1.5cents interim, they are paying additional 3.5cents as capital reduction (which translates to>70% of the divestment proceeds).

The skeptical me had thought "more Aspial retail bonds" but I reckon that would probably hit some RPT limit, and requires some voting. I have more work to do, to understand more about historical behavior/norms of all these market participants.

THE PROPOSED CAPITAL REDUCTION AND THE CASH DISTRIBUTION

The Board has also announced today that the Company is proposing to distribute a special interim cash dividend (the “Special Dividend”) of S$0.015 for each ordinary share of the Company (a “Share”) held by the entitled Shareholders who hold Shares as at 5.00 pm on the record date, being 16 August 2024 (the “Special Dividend Record Date”).

As the Rawai Disposal Consideration from the Rawai Disposal exceeds the working capital needs of the Group, the Board proposes to undertake a capital reduction exercise (the “Capital Reduction”) to return to the Company’s shareholders (the “Shareholders”) surplus capital of the Company in excess of its needs by way of a cash distribution (the “Cash Distribution”) by the Company to Shareholders of S$0.035 for each Share held by the Shareholders on the record date to be determined.

https://links.sgx.com/FileOpen/AFGL%20-%...eID=814480