Metro Holdings

Metro Holdings reports slump in Q3 profits..

PROPERTY and retail group Metro Holdings reported a 63.3 per cent year on year plunge in net profit to S$20.49 million for the third quarter ended Dec 31, 2016.
This was largely due to lower share of associates' results, which fell to S$9.03 million from S$57.65 million because of lower contributions from the recognition on handover of sales of properties of the Nanchang project.
Revenue fell 9 per cent to S$37.3 million as the Metro City Square department store was closed by the retail division in mid 3QFY2016.
Meanwhile, earnings per share for the quarter under review fell to 2.5 Singapore cents, from 6.7 cents a year ago.
The group warned that it will continue to be affected by significant currency translation adjustments on foreign operations, which will affect the results and the balance sheet, due to volatility in foreign currency exchange rates. The majority of its assets are located in China.

Financial Results for the Financial Year ended 31 March 2017 ("FY2017")

Highlights :
1. Metro Holdings registered revenue of S$131.2 million for FY2017
2. Net Profit of S$81.0 million for FY2017 versus S$113.3 million in FY2016
3. Metro’s core Property Division registered a decrease in profit before tax to S$82.5 million in FY2017 from S$122.3 million in FY2016
4. Balance sheet remains healthy, with shareholders’ equity of approximately S$1.35 billion as at 31 March 2017
5. Net cash declines to S$323.5 million as Group deployed cash to accretive investments; will continue to capitalise on new investment opportunities
6. Declares final dividend of 2.0 Singapore cents and final special dividend of 3.0 Singapore cents per ordinary share.

More details in :
1. http://infopub.sgx.com/Apps?A=COW_CorpAn...7Final.pdf
2. http://infopub.sgx.com/FileOpen/MHLFY201...eID=455803
3. http://infopub.sgx.com/FileOpen/News%20R...eID=455791

Metro Holdings Grows Its Indonesian Presence in Property Market

Metro Holdings Limited further grows its presence in Indonesia through a strategic partnership with Trans Corp, for the development, marketing and sales of two residential towers in Bintaro, Jakarta for a total investment value of approximately Rp1.33 trillion (approximately S$127 million), together with Lee Kim Tah Group. The Metro Group’s 90% commitment for the investment is approximately Rp1.20 trillion (approximately S$114 million).

The development of the Bintaro project will be over a site area of about 1.6 hectares, comprising of two residential towers (with approximately 1,400 apartment units and 170 Small Office Home Office “SoHo” units) where the residential units are positioned for the middle to middle upper level market with quality design. A wide range of integrated facilities will be made available including Trans Studio, a retail mall with gross floor area of approximately 22,361 square metres with Transmart, cinemas, F&B and a theme park, Kidcity. The ground-breaking ceremony of the Bintaro project was held on 23 March 2018 and the construction of the development is targeted to be completed by mid 2021.

This comes close after an earlier announcement of Metro’s partnership with Trans Corp and the Lee Kim Tah Group in the Bekasi project on 3 November 2017 to develop, market and sell five 32-storey residential towers (with approximately 5,600 apartment units), Trans Park Residences, part of the landmark mixed development project, Trans Park @ Juanda Bekasi in Jakarta, for a total investment value of approximately Rp1.99 trillion (approximately S$200.4 million).

More details in :
1. http://infopub.sgx.com/FileOpen/MHL%20An...eID=499277
2. http://infopub.sgx.com/FileOpen/NR%20Fin...eID=499278

Acquisition of 35% Equity Interest in a JV to Acquire Shanghai Plaza, The PRC

Metro Holdings Limited announced that on 17 May 2018, Shanghai Xing Chu Business Consulting Co. Ltd, an indirect wholly-owned subsidiary of Metro China Holdings Pte Ltd, has entered into a Shareholders’ Agreement ("SHA") with other individual investors being independent third parties, (together "Joint Venture" or "JV") for the acquisition of a 35% stake in Shanghai Yi Zhou Property Management Co., Ltd. ("Shanghai Yi Zhou"). Pursuant to the SHA, Shanghai Xing Chu will contribute an aggregate of Rmb 265 million (approximately S$ 56 million), in proportion to its 35% equity interest, to the JV for acquiring and operating the mixed-used commercial building. 

On the same day, Shanghai Yi Zhou, through its wholly-owned subsidiary, Shanghai Shang Min Business Consulting Co. Ltd. entered into a Sale and Purchase Agreement (the “SPA”) with Hangzhou Huan Bei Silk Clothing City Co., Ltd., an independent third party, to acquire a 90% stake in Shanghai Yong Ling Property Development Co. Ltd. which owns the Shanghai Plaza, located in Huai Hai Zhong Road, Huang Pu district in Shanghai, PRC. The SPA is subject to obtaining shareholder’s approval from Hangzhou Huan Bei’s ultimate shareholder, which is a listed company on the Shanghai Stock Exchange. It is intended for the JV to acquire the remaining 10% stake in Shanghai Yong Ling by 2020.

The total investment cost of the investment (comprising the acquisition price of the Property of Rmb 2,250 million (approximately S$ 475 million) and the related renovation costs, financing costs, taxes and expenses of Rmb 657 million (approximately S$ 139 million) is estimated to be Rmb 2,907 million (approximately S$ 613 million). The total cost for the Investment will be funded by shareholders’ equity, banks and/or independent financial institutions. 

Shanghai Plaza, a landmark mixed-used commercial building, has a gross floor area of 40,693 square meters spanning across seven floors. It is located at the prime Huai Hai Zhong Road, Huang Pu district, Shanghai, which is the most central district in Shanghai and one of the most densely populated urban districts in China. The property is also close to the popular shopping district area nearby Xintiandi District, People’s Square and the Lujiazui CBD, with connectivity to major train lines and expressways.

More details in :
1. http://infopub.sgx.com/FileOpen/MHL%20An...eID=506255
2. http://infopub.sgx.com/FileOpen/MHL%20Pr...eID=506256

Financial Results for the Financial Year Ended 31 March 2018 ("FY2018")

Highlights :
1. Robust 93.8% growth in net profit after tax ("PAT") to S$157.0 million
2. For Retail division - Profit Before Tax ("PBT") decreased by $3.5 mil from PBT of $1.3 mil in FY 2017 to a Net Loss of $2.2 mil in FY 2018
3. For Property division - PBT grew by $89.0 mil from $81.2 mil in FY 2017 to $170.2mil in FY 2018
4. Healthy Net Cash position of S$181.0 million
5. Net Assets grew to $1,482 million, by $131 mil from $1,351 million
6. Net asset value per share was $S1.78 as at 31 March 2018
7. Proposes final dividend of 2.0 Singapore cents and final special dividend of 3.0 Singapore cents per ordinary share

More details in :
1. http://infopub.sgx.com/FileOpen/MHL-Q4%2...eID=507360
2. http://infopub.sgx.com/FileOpen/NR.ashx?...eID=507361
3. http://infopub.sgx.com/FileOpen/MHL%20-P...eID=507393

Metro Holdings last traded price is S$1.16.

Divestment of Metro Holdings Ltd's Indirect Interest of 50% Equity Stake in PT Metropolitan Retailmart

Metro Holdings Limited announced that its wholly-owned subsidiary, Metro (Private) Limited ("Metro Pte Ltd"), has entered into a Deed of Sale and Purchase and sold its entire 50% equity stake in PT Metropolitan Retailmart (“PT MRM”) to the existing 50% joint-venture partner, PT Trans Corpora (“Trans Corp”), through its affiliate company (the "Divestment").

At the same time as the Divestment, Metro Pte Ltd has entered into a revised license agreement and granted to PT MRM permission to use its “Metro” trademarks in return for a fee payable to Metro Pte Ltd.

PT MRM currently operates 11 Metro stores spread across Jakarta, Bandung, Surabaya, Makassar, Solo and Manado.

Metro Pte Ltd sold its 50% equity stake in PT MRM to the affiliate companies of Trans Corp, independent and unrelated parties, for a sale consideration of S$25 million.

More details in https://links.sgx.com/FileOpen/PTMRM-12D...eID=590306

Metro@78
AR2021
Div 2+0.5cts
https://links.sgx.com/FileOpen/Annual%20...eID=674612


Stay home and stay safe, everyone.

It seems there are a few new deep value investors in Metro Group? 

Multiple OPMIs have asked the rationale behind an additional stake in Top Spring, purchased from its Founder at almost double of open market prices. My simpleton understanding is that this probably allows Metro Holdings to continue to equity-account Top Spring on the balance sheet and avoid converting the accounting to "financial assets at FVOCI". The act of providing liquidity for the Founder chairman to do a partial exit, also allows the Metro Holdings to recognize a negative goodwill. That's killing 2 birds with 1 stone and a great piece of business!

Looking at the Top Spring's BOD, I am pretty sure you don't need a minimum 20% stake to keep your seat on it. After all, Metro Group have been in business together with the Founder for more than 20years and the relationship has been good.

MINUTES OF FIFTY-FIRST ANNUAL GENERAL MEETING HELD AT GRAND BALLROOM III, LEVEL 6, ORCHARD WING, HILTON SINGAPORE ORCHARD, 333 ORCHARD ROAD, SINGAPORE 238867 ON FRIDAY, 26 JULY 2024 AT 3.00 P.M

He appreciated the detailed explanation on the current situation in PRC, how it affected Top Spring and its share price and the rationale for the purchase of the additional 6% stake in Top Spring. Metro Group purchased the additional 6% stake in Top Spring on 10 January 2024 for HK$1.10 per share. The share price of Top Spring on 9 January 2024 was HK$0.58 per share. He accepted the explanation by the Group CEO on why Metro Group had to acquire the additional 6% stake from the founder to maintain the public free float and for Metro Group to maintain a board seat in Top Spring. The share price of Top Spring on 25 July 2024 was trading at half of HK$0.58 per share. Shares of all real estate counters in HK are also trading at very low prices.

https://links.sgx.com/FileOpen/MHL%20-%2...eID=816698

Kudos to the Chairman and Scribe allowing and writing such detailed MoM

Hi weijian,

You can continue to account Top Spring as an associate, but if Top Spring continue to make losses, you have to take a share of their losses as well every year as it hits their equity. So, the bottom line is still whether Top Spring can continue as a going concern. Otherwise, it will be zero, regardless of whether you use financial assets at FVOCI or associate accounting.

(24-08-2024, 08:07 PM)ghchua Wrote: Hi weijian,

You can continue to account Top Spring as an associate, but if Top Spring continue to make losses, you have to take a share of their losses as well every year as it hits their equity. So, the bottom line is still whether Top Spring can continue as a going concern. Otherwise, it will be zero, regardless of whether you use financial assets at FVOCI or associate accounting.

Hi ghchua,

Hasn't the "share of losses" account just been top up 40mil? Plenty of margin to continue playing the "extend, amend and pretend" game.

Of course as you have rightly pointed out, the "continue as a going concern" is the ultimate harbinger of things. Whether is it throwing more good money after bad, OR a brilliant move to buy at "bargain prices" that will make Mr HKEX Market look really stupid, OPMIs just got to have faith in the guys in charge. After all, seems like a few deep value guys just got on board there.