Popular Holdings

Dividend (0.8ct) Payout Date : 26 Sep 12

AGM : 24 Aug 12 (Fri) 10am
EGM : 24 Aug 12 (Fri) 10:30am

EGM : Proposed Share Buy-Back Mandate

Looks like we may have read too much into Old Man's buying activities. Likely, he thinks it's undervalued and since he has lots of spare change from his dividends, the best thing would be to do what he'd been doing. Unless EGM is a smokescreen...

Unlikely I'll be able to make it to the AGM/EGM as I'm extra busy on Fridays and especially that timing.

This share buy back is good news. Bring the stock closer to fair value. Put that mountain of cash to use by increasing our per share value. Rather than put fd 1%...

I imagine a 3-Prongs Strategy,

1) DIY DRP - Use Div to re-invest. His % grows bigger
2) Share Buy-Back - The Pie gets smaller but some may be for (3)
3) Stock Awards / Options - From Variable Bonus component, his % grows bigger

For EGM (Share Buy-Back), perhaps when approved, I ought to approach them to negotiate on the 120% Off-Market Price for my stake (after that, I rebuild again by buying from open market)...

For AGM Special Resolution (no. 8), I wonder what's the real intention. Looks like quite a huge mandate to me, 20% / 50% - don't know how to interprete the legal speak..

If indeed he buys your shares at 20% premium to average market price, I don't think it will come down for you to accumulate again. I will continue holding this until it is close to my fair value.

(06-08-2012, 10:05 PM)karlmarx Wrote: If indeed he buys your shares at 20% premium to average market price, I don't think it will come down for you to accumulate again. I will continue holding this until it is close to my fair value.

Just kidding lah...
I don't feel comfortable to vote for a resolution that allows them to buy at 120% of Average Market Price for Off Market Share Purchase as it's going to be open to misuse / abuse. Further, there ought to be a Max Price that's not based on Market Price. Maybe something like Berkshire, use 110% of Book Value or something more suitable...

Why is that a bad idea? If they want to buy high high price, I will be very happy to sell to them.

I agree that pegging the purchase price to book value is a good idea. but for a retail business like popular, using p/e to peg will be more suitable.

This is because popular's most valuable assets (retail network, branding, market leadership, and operational efficiency, etc) are not on the books. If we remove the excess cash from its balance sheet, it's p/b will jump to about 2.

(10-07-2012, 10:43 AM)KopiKat Wrote:

(10-07-2012, 10:23 AM)orang Wrote: One question you can ask at the AGM is the breakdown of the increase in retail outlets from 139 to 148.

The answer should give us the Malaysian figure. It is quite relevant because the only time (ever?) a breakdown is given (Singapore 62 Malaysia 65 Hongkong 12) is in fy11 sgx filing.

Interesting to know how the answer is delivered.

Oh yes, generally I do not attend AGM

Same here, I have yet to attend a single AGM... I'll try to find some time for this case as it's now quite a high % of my pie.

I went to count from the Popular Malaysia website under 'Store Locator'. Total = 72 but that may include additional new stores opened after FY12 (Apr). Let's see if they put this figures in FY12 AR 1st.

KL 8
Johor 8
Kedah 6
Kelantan 1
Melaka 5
Negri 3
Pahang 2
Penang 8
Perak 5
Perlis 0
Sabah 3
Sarawak 6
Selangor 16
Tregannu 1

Will be putting this stock in my 'freezer' for the time being unless there're any new devts...

AR2012 is out. Can also download from their website.

Total stores in Malaysia = 70 (+5).
Singapore 63 (+1)
HK 15 (+3)

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SGX Annc
On 8-Aug, 864,000 @ $0.236 by wife

Quick Summary of 2012 Annual Report
• Turnover is $567.3M, up 8.6%, profit before tax is $36.4M, up 15.7%.
• Key performing businesses were retail and distribution – turnover rose by $43.3M to $482M while profit before tax rose by $10M to $29.1M
• Operating cash flow is $51M. Cash on hand is $115M.
• Net asset value per share is 25.09 cents.
• Has 148 outlets, 9 more than in FY12. 63 outlets in Singapore, 70 in Malaysia and 15 in Hong Kong.
• Publishing and e-learning business were flat.
• Popular Land’s revenue is $29.6M, up $1.8M form last FY. Excluding impairment loss reversed in the last FY, profit before tax increased by $2.8M to $3.7M.
• Has gone into book Café business –{ prologue } at ION Orchard has started the first book café Epilogue. Another Epilogue café was recently launched in Orchard Central.
• Started a new business, Office Solutions, to supply office products to the corporate world.
• Has ‘Creative Learning Package” and teacher training for pre-school teachers in China.
• Total divided is 1.3 cents – 0.5 cents interim and 0.8 cents final. Yield is 5.5% at the last closing price of 23.5 cents.

In 2009, Popular made a non-cash impairment provision of $28.2M. $21.7M was reversed in FY2010 while $6.5M was reversed in FY2010. Removing the impairment provision and reversal, profit before tax for 2009, 2010, 2011 and 2012 would have been $9M, $18M, $25M and $36M -- very impressive grow!

I have vested interest in Popular.

shn,

Great summary! But then again, 'Beauty is in the eyes of the Beholder' and since I'm vested.....

(12-08-2012, 04:55 PM)shn Wrote: In 2009, Popular made a non-cash impairment provision of $28.2M. $21.7M was reversed in FY2010 while $6.5M was reversed in FY2010. Removing the impairment provision and reversal, profit before tax for 2009, 2010, 2011 and 2012 would have been $9M, $18M, $25M and $36M -- very impressive grow!

Hey! Don't look like a co. in a sunset industry! Looks more like a Growth stock!

Quote:• Operating cash flow is $51M. Cash on hand is $115M.

Cash on hand = $145.9M ; Net Cash (of Debts) = $115M


Other interesting points from the Chairman's message,

• Biggest book retailer in Singapore, Malaysia and Hong Kong.
• Pan Lloyds continues to be the dominant supplementary book publisher in Hong Kong taking up about 30% of the market share.
• Ei8ht Raja, should be completed by early 2013 and ready for launch.
• Popular Club membership has exceeded 1.4 million. Card Subscriptions FY12 : $4.902M vs FY11 : $4.819M

To add to 2 of your points,

• Office Solutions - To supply office products to the corporate world, estimated to be worth S$400 million annually. Hopeful that this segment will synergise with stationery retail business
• “Creative Learning Package” - Coverage of 21 provinces, an addition of seven. Teacher training for pre-school teachers has trained more than 500 teachers since it started at the end of 2011.