Vibrant Group Ltd (Formerly: Freight Links Express Holdings)

1Q report released today. Good numbers generally. This is a proxy to Sabana. Price has not climbed that much yet.

Price gained 7.8% this Friday. Awaiting scrip dividend priced at $0.057.

Anyone has any insights to this company?

Latest FY13 results look decent. Dividend 0.5 cents. EPS 1.62 cents. NAV 9.56 cents. Today's price 9.2 cents.

(27-06-2013, 11:37 PM)VestedInterest Wrote: Latest FY13 results look decent. Dividend 0.5 cents. EPS 1.62 cents. NAV 9.56 cents. Today's price 9.2 cents.

Do look carefully into the P&L numbers in the latest FY13 results announcement!.....
http://info.sgx.com/webcoranncatth.nsf/V...70030EB3F/$file/FreightLinks_FY2013_Result.pdf?openelement

If you take out the huge Other income ($20.579m - mainly due to gain on fair value of the group’s investment in Sabana REIT units and Sentosa Asian Credit Offshore Feeder Fund) and Accretion of deferred revenue ($20.556m - mainly deferred gains from sale/leaseback of the properties at 9 Changi South and 5 Toh Guan Road East to Ascendas Real Estate Investment Trust were fully accreted in Dec11 and Dec12 respectively, i.e. the booking of such gains has stopped), Freight Links would have reported an operating loss of ($2.372m).

I think we should bear in mind that quite a big chunk of Freight Links' recorded profits in recent years - which have helped raise its equity position and strengthened its B/S - was from disposal of its logistics properties to Reits based on sale/leaseback transactions, but the high rentals inherent from the leaseback have been a big drag to its recurrent operating profits. We should also bear in mind that cash from the sale/leaseback of the logistics properties have funded Freight Links' new capex and reduced its previous much higher gearing. So without the industrial Reits and the many dividend-yield seeking investors who back them, Freight Links could well have remained a much smaller company B/S wise!

An interesting article in this week's TheEdge.

The eye-catching headline is "Freight Links refinances mega church's loan'. Here, the 'mega church' refers to City Harvest, which is in the news recently for the court case involving some of their members.

What's interesting is,

- Glory Capital (65% owned subsidiary) will provide a $45m loan for 5-years, which gives 12.8% returns (8% interest + $13m front end fee). Secured over a 39.2% (another para mentioned 19.2%) stake in Suntec Singapore.

- Agreement allows them to acquire a 9.2% stake in the property for $47m if City Harvest wishes to sell during a specified period and certain conditions are met (Suntec REIT has ROFR over this stake).

- In May, they raised $100m from MTN @ 4.6%, which was 13x oversubscribed. The money for this Loan will come from here.

- In 2010, they invested US$30m (after EGM approval) in Sentosa Capital (Hedge Fund), which now gives them >10% returns per year.

Here, my reading is they're explaining and justifying that they have the background in possibly a new segment (Investment? or Finance?) of business and the above loans (by Glory Capital) is a natural expansion into this area.

- For FY13, Revenue breakdown is Freight Forwarding (38%) ; Chemical Storage & Logistics (32.9%) ; Warehousing & Logistics (24%).

quite strange - can a logistics company gives out loans/refinancing activities?
or is it company loan to another company is allowed?

like that bank business quite tough to do le - cannot do property and non-banks can also gives out loans to 3rd parties

I think companies are able to loan to other companies if they want. No financial expert here. But probably they are some limit to how uch they can lend out too.

(01-09-2013, 05:59 PM)KopiKat Wrote: An interesting article in this week's TheEdge.

The eye-catching headline is "Freight Links refinances mega church's loan'. Here, the 'mega church' refers to City Harvest, which is in the news recently for the court case involving some of their members.

What's interesting is,

- Glory Capital (65% owned subsidiary) will provide a $45m loan for 5-years, which gives 12.8% returns (8% interest + $13m front end fee). Secured over a 39.2% (another para mentioned 19.2%) stake in Suntec Singapore.

- Agreement allows them to acquire a 9.2% stake in the property for $47m if City Harvest wishes to sell during a specified period and certain conditions are met (Suntec REIT has ROFR over this stake).

- In May, they raised $100m from MTN @ 4.6%, which was 13x oversubscribed. The money for this Loan will come from here.

- In 2010, they invested US$30m (after EGM approval) in Sentosa Capital (Hedge Fund), which now gives them >10% returns per year.

Here, my reading is they're explaining and justifying that they have the background in possibly a new segment (Investment? or Finance?) of business and the above loans (by Glory Capital) is a natural expansion into this area.

- For FY13, Revenue breakdown is Freight Forwarding (38%) ; Chemical Storage & Logistics (32.9%) ; Warehousing & Logistics (24%).

Thanks for sharing, I am quite surprised that they are into loans and hedge funds, I feel that's beyond their core competency

However this seems to be the trend, looking at companies like yangzijiang.
If their core business isn't bringing in much profits, our local companies tend to like to diversify into areas such as property or finance.

When many companies start to diversify into the same area, a bubble may be formed~

Actually I dun see the problem with freightlink's loan. It just smart money mgmt. on their part raise debt at lower rate and loan off. For this venture, they are taking the risk that CHC may default.

Similarly for YZJ, they are taking the oppt of lending to SMEs who are not able to secure bank loans, yes YZJ is taking the risk of lending to SMEs. Business after all is weighing the risk one venture faces. Normally the first movers will not face a bubble, its when a lot of ppl join the party that the bubble truly forms. In my view, YZJ was one of the first movers.

Freightlink is probably the one coy to have noticed the oppt and seized it.

<not vested n both>