K1 Ventures

China Grand Auto gets OK for stock offering
Bloomberg | 2014/6/10

Dealership group China Grand Automotive Services Co. received approval from the Hong Kong stock exchange for an initial public offering, according to knowledgeable sources.

The Shanghai company, which is part-owned by TPG Capital, is considering selling a 15 percent stake to raise $700 million (4.4 billion yuan), the sources said.

The dealership group plans to start gauging investor demand within the next two months, they said.

Hong Kong initial public offerings have raised $6.8 billion this year, up from $4.6 billion in the same period a year earlier. According to its Web site, China Grand Auto had 400 outlets across China at the end of 2012.

The company posted sales of 73 billion yuan ($11.70 billion) that year.

A spokeswoman for China Grand Auto said she could not immediately comment.

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Rough calculation:

15% stake to raise USD 700mil, CGA valued at USD 4.6bil．
K1 stake in CGA is ard 1.6%, translating to USD 73.6 mil = SGD 92 = 4.2cts / share
Cost of K1 stake is USD 12.3 mil, gain = USD 61.3 mil = SGD 76.6 = 3.5cts / share

SOTP calculations from Mr Goh Han Peng

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According to media news, China Grand Automotive Services
Co., the largest automotive dealer in China, has received approval from the Hong Kong Stock Exchange for an IPO. China Grand Auto, which is majority-owned by TPG Capital, is looking to raise USD700m by selling a 15% stake in the company. k1 Ventures, which has an effective stake of 1.6% in China Grand Auto, could potentially monetize its stake for SGD90m, by our estimates, and realize gains of some SGD70m. k1 recently sold its rail equipment leasing business in the U.S. for USD143m in net proceeds and paid out a five cent special dividend. We expect the company to continue to dish out dividends upon portfolio divestments as management has committed not to make new investments and return excess cash from investment sales. Since 2004, the group has returned some SGD700m to shareholders in capital distributions and dividends from profitable exits. Post the recent five cents distribution, we continue to value k1 using a sum-of-parts methodology with a valuation of SGD0.29. Applying a 20% holding company discount, our TP of SGD0.23 offers 28% upside from current levels. We maintain
our BUY rating. (Goh Han Peng)

The analyst (Goh) has done a good job on K 1. I am vested in K 1 for a year now and has reaped good dividends. The residual cash from sale of Helms and the listing of CGAS will provide further payouts for patient investors.

For those who had heeded my advise in June now they would have said damn should have loaded more. Congrats anyway. Announcement coming very soon. I am still loading more though lesser since my news said it will soon hit 0.26. Good luck to opportunistic investing.

(16-07-2014, 01:06 PM)FlyingEagle Wrote: For those who had heeded my advise in June now they would have said damn should have loaded more. Congrats anyway. Announcement coming very soon. I am still loading more though lesser since my news said it will soon hit 0.26. Good luck to opportunistic investing.

Bro, you also called for KOP, look at where it is now....26 cts....

RE: KOP
KOP new valuation price at $0.45/share....soon it will rocket like nothing... now trending upwards $0.305....up up up ...load before too late

(16-07-2014, 01:06 PM)FlyingEagle Wrote: For those who had heeded my advise in June now they would have said damn should have loaded more. Congrats anyway. Announcement coming very soon. I am still loading more though lesser since my news said it will soon hit 0.26. Good luck to opportunistic investing.

You gave two advices in June, one for K1 Ventures, and the other for KOP.

http://www.valuebuddies.com/thread-1149-...l#pid84978
http://www.valuebuddies.com/thread-5138-...l#pid84980

K1 Ventures is right, but KOP is wrong, so the probability is the same as flipping a coin

(not vested on both)

Advice or tip? Don't anyhow say you advise people. That's dangerous grounds (with the law)I know some people damn scared of being said to be giving financial advice.


Sent from my iPhone using Tapatalk

I am accumulating KOP and waiting

You are free to buy any stock lah nobody asking you to follow leh

(16-07-2014, 01:06 PM)FlyingEagle Wrote: For those who had heeded my advise in June now they would have said damn should have loaded more. Congrats anyway. Announcement coming very soon. I am still loading more though lesser since my news said it will soon hit 0.26. Good luck to opportunistic investing.

I learnt a new term today!