Duty Free International (formerly: Esmart Holding)

(05-07-2014, 06:14 PM)lanoitar Wrote:

(05-07-2014, 05:33 PM)Sincerity Wrote:

(05-07-2014, 05:26 PM)opmi Wrote: All I know about this company is that they sold their JB property assets near Woodlands checkpoint to related parties. That's a few years back. Just when Iskandar is getting hot.

yap . to Berjaya corp and Berjaya corp having 26% stake in Atlan, parent of duty free international.

This transaction is fishy:

1. It's revealed that DFI made a pre-payment rental of RM86.2m for the property they sold for RM325. That's 26.5% of the purchase price, and doesn't look like ordinary commercial term to me.

2. There's a receivable of RM80m (chargeable at 6% interest) relating to this sale. Coupled with the rental pre-payment, shareholders essentially finance 51% of Berjaya's purchase price, of which 26.5% is interest-free.

3. According to the S&P agreement, the RM80m receivable is supposed to be paid up by 15 Mar 2014. To date, Berjaya has only paid RM30m (+ interest). DFI extended the payment due date for the remaining RM50m to 15 Jul 2014.

Thanks for your info.
The pre payment of 86.2M is to cover the rental of Berjaya waterfront for Zon's duty free business in Berjaya waterfront for 25 years if I am not wrong. 86.2M divided by 25 years means around 3.4M ringgit rental every year, which too me is quite reasonable.

Anyway Berjaya corp under Vincent Tan is a well know company in Msia, there is no risk of it defaulting on the remaining payment due soon. I would say the risk is high if the other party is some china company instead of Berjaya. I would very much appreciate if you can let me know the source of your information for the 15 July payment date?. Thanks very much.
Upon receiving this amount, they may give another special dividend or start another round of aggressive share buyback if the cash received. Till this date, there is no profit warning that Vincent Tan's Berjaya is defaulting on the 50M. so should be all right.

Vincent Tan maybe eyeing Duty Free business as he acquire 26% in Atlan, parent of duty free international. Atlan announced a placement exercise recently meaning more shares will be issued, and I hope Vincent Tan may start acquiring the extra shares to launch a take over bid.
The following news report says he will upgrade duty free building.

http://www.thestar.com.my/News/Nation/20...lang-Laut/
Quote:
Tan said Berjaya Group would also refurbish and revamp the duty-free area which housed the Berjaya Waterfront Hotel and Duty-Free Shopping Complex.
Tan said Berjaya Group aimed to change the area into a family-orientated zone, adding that the group also had other projects in the pipeline for Johor.

Catalyst for this stock:
1) Upgrade to mainboard as stated in their press release upon listing after RTO.
2) Venturing into asia pacific areas duty free business
3) Aggressive share buyback upon receiving the remaining cash from Berjaya
4) Good dividends.
5) Kular Lumpar Airport 2 beauty product and perfume concessions won recently after Shilla Duty Free of korea withdrew
6) Vincent Tan of Berjaya having 26% stake in Atlan, duty free parent may take over duty free business/.

(05-07-2014, 07:27 PM)Sincerity Wrote: Catalyst for this stock:
1) Upgrade to mainboard as stated in their press release upon listing after RTO.

Pardon my lack of experience in this but are there examples of other stocks having a boost in the share price after moving to mainboard?

Let's say moving to mainboard is indeed a catalyst, I find in puzzling to delist from the home country's MAINBOARD and RTO the same thing into SGX Catalist. There are "advantages" to stay OUT of the mainboard (e.g. Major Transactions). So mainboard or not, I don't know.

(05-07-2014, 11:19 PM)cif5000 Wrote:

(05-07-2014, 07:27 PM)Sincerity Wrote: Catalyst for this stock:
1) Upgrade to mainboard as stated in their press release upon listing after RTO.

Pardon my lack of experience in this but are there examples of other stocks having a boost in the share price after moving to mainboard?

Let's say moving to mainboard is indeed a catalyst, I find in puzzling to delist from the home country's MAINBOARD and RTO the same thing into SGX Catalist. There are "advantages" to stay OUT of the mainboard (e.g. Major Transactions). So mainboard or not, I don't know.

yes.. kruez for example. share price went up from 30 cents sept 2012 to 44 cents in oct 2012 when it upgraded from catalist to mainboard on 8 Oct 2012.

Oxley also upgraded from calalist to mainboard.
http://sbr.com.sg/markets-investing/mark...-mainboard

There are more examples..
http://www.nextinsight.net/index.php/sto...-mainboard
Price at 20 cents (just after announcement of plans to upgrade, Nov 2012) then slowly rises to 24 cents around upgrading (feb 2013)

anyway that's my prediction .. I may be wrong..

vested in duty free international.. just sharing why I bought into duty free.

Not inducement to buy, just want to share

Pollux is another potential one..Duty free and pollux is like sleeping dragon, must wait patiently for it to wake up

Today share buyback starts again

Results for Q1/15 just out:

Keypoints:

1) Profit before income tax
The Group reported a profit before income tax from continuing operations of RM16.7 million for 1Q FY2015, which was 6.5% or RM1.0 million higher than the profit before income tax of RM15.7 million reported in 1Q FY2014.
==> The MH370 missing Malaysia airplane did not affect it's business during reporting period from March to May. Next quarter should be better as the effect of the missing MH370 wears off and the newly open shops in the new Kular lumpar airport terminal 2 start operating in July.


2) In March 2014, DMSB received RM34.8 million, being the sum of RM30.0 million deferred consideration and RM4.8 million accrued interest up to 15 March 2014. Both parties had mutually agreed that Berjaya Waterfront shall pay the remaining deferred consideration of RM50.0 million together with the interest thereon at the rate of 6% per annum on or before 15 July 2014. On 30 June 2014, both parties had mutually agreed that the payment of the remaining deferred consideration be further extended to 15 October 2014.
==> Meaning no dividend declared this Quarter, have to wait until the remaining RM50 million is paid before 15 Oct.

3) Rental of premises expenses mainly comprised of rental payable to the airport authority and rental expenses of certain retail outlets. The rental of premises expenses showed an increase of 13.8% or RM1.1 million from RM7.7 million in 1Q FY2014 to RM8.8 million in 1Q FY2015, mainly due to the rental expense for the outlet in Kuala Lumpur International Airport (“KLIA”) which recorded an increase of RM0.7 million, in tandem with higher revenue achieved, and rental expenses for new outlets at KLIA 2. The rental payable for the KLIA outlet is based partly on sales performance. Further, the rental expenses incurred for the outlets in Johor Bahru increased by RM0.4 million, following the completion of the DMSB Agreement on 15 March 2013.
==> Higher revenue results in higher rental in Kular Lumpar Airport, not a bad thing as revenue increases. Shops at the newly opened Kular Lumpar Airport terminal 2 will start operating in July which should help revenue for the next quarter.
http://www.trbusiness.com/index.php/regi...klia2.html
http://www.moodiereport.com/document.php?doc_id=39474

Main concern is comparing continued business and discontinued business EPS. Is the forward p/e still making sense? Can they still give out the same amount of dividend?

(14-07-2014, 09:54 PM)mrEngineer Wrote: Main concern is comparing continued business and discontinued business EPS. Is the forward p/e still making sense? Can they still give out the same amount of dividend?

Yap, correct. That why I hope to see the newly acquired concession in the new kular lumpar airport terminal 2, the new duty free shops would contribute positively. The new shops start operation this month. So next quarter results would be interesting.
http://www.trbusiness.com/index.php/regi...klia2.html
http://www.moodiereport.com/document.php?doc_id=39474

And I also hope Vincent tan ,thru berjaya corp maybe interested to take over atlan (parent of duty free) and thus take duty free private. Atlan is doing a share placement, which means Vincent Tan has opportunity to acquire more shares and trigger a General offer?
http://www.nst.com.my/node/3724

http://journeytowealth88.blogspot.sg/201...s-mas.html

http://www.theedgemalaysia.com/highlight...entex.html

Quote: (2012)
The Edge weekly in its latest edition reported that Tan Sri Vincent Tan Chee Yioun was building a presence in duty-free chain operator Atlan, a
move that could lead to a change of control in the company and possibly a general offer situation.


Or duty free decides to expand regionally or revive talks with malasia airport's Eraman duty free for merger as Malaysia airline is going to be nationalise by the Malaysia government, maybe some corporate actions ?
http://www.theedgemalaysia.com/features/...tlets.html


We buy on hope, if these hope materialized, then share price would have jumped and too late to go in. But if never materialized, the support shd be at 28 cents.

And of course, I hope after getting the remaining 50million ringgit from berjaya, they will use the cash to do an aggressive share buyback just like beginning of 2013.
http://nextinsight.net/index.php/story-a...-of-shares

Vested with hope

Malaysia government is going to restructure Malaysia airline and perhaps they would want to divest non-related business to focus on aviation related business.

http://in.reuters.com/article/2014/06/10...OY20140610



Perhaps there is a chance that Duty Free International and it's parent Atlan may revive it's plan of merging with Eraman Duty Free, the retail portion of Malaysia airport which potentially is a game changer. Hope for the best

http://www.theedgemalaysia.com/features/...tlets.html

http://www.ndtv.com/article/world/state-...ces-552209

The MH17 air crash incident just happened will speed up privatisation of Malaysia airline and maybe Malaysian state investor Khazanah Nasional Bhd may now sell off Eraman Duty free to Duty free Zon to focus on airport and airline related business..

http://www.theedgemalaysia.com/features/...tlets.html