Sheng Siong Group

(04-09-2014, 03:29 PM)CityFarmer Wrote:

(04-09-2014, 11:45 AM)specuvestor Wrote: What was unexpected is that we had expected them to take on some mortgage debt for the buying of proprties. If they funding it with equity their ROE will collapse as discussed. I think they figured with their current ROA of 18% they can afford 8% dilution and maintain their payout

Yes, it is a choice of dividend payout ratio vs. ROE.

FYI, ROE/ROA was 26%/16% in FY2013. The management has decided to keep dividend payout ratio, with the expense of ROE/ROA. How bad the ROE/ROA will be?Let's see the outcome in FY2014.

I am happy as OPMI, knowing that the management is concern on the dividend payout, rather than chasing ONLY the performance (ROE/ROA)

(vested)

Actually dividend payout improves ROE. It is actually a choice of leverage vs ROE because their biz model is changing. They are choosing to reduce ROE. If their new assets can maintain similar ROA should be fine but sideway stock for some time until new catalysts

http://www.valuebuddies.com/thread-1240-...l#pid90119

P.S. Technically they could continue to pay same absolute amount dividend with even >100% payout ratio simply by leveraging.

(04-09-2014, 04:41 PM)CityFarmer Wrote: The Placement Agent, J.P. Morgan (S.E.A.) Limited, has "placed" the 120 mil share to public? The up-to-minute volume today is more than 177 mil shares.

The settlement date is later, but the Share Lending Agreement, allows the Placement Agent to "place" the share out with borrowed shares.

The placement will increase the liquidity of the company share.

(vested)

After a day of "dumping" (placement), the trading of the company share is back to normal.

(05-09-2014, 10:01 AM)CityFarmer Wrote:

(04-09-2014, 04:41 PM)CityFarmer Wrote: The Placement Agent, J.P. Morgan (S.E.A.) Limited, has "placed" the 120 mil share to public? The up-to-minute volume today is more than 177 mil shares.

The settlement date is later, but the Share Lending Agreement, allows the Placement Agent to "place" the share out with borrowed shares.

The placement will increase the liquidity of the company share.

(vested)

After a day of "dumping" (placement), the trading of the company share is back to normal.

I thought private placement which is to sell new share to selected main investors to hold a big stake in the company. But then there is lending involves and then the high volume trades in retail market. Anyone able to help expain this interconnections ?

(05-09-2014, 11:03 AM)corydorus Wrote:

(05-09-2014, 10:01 AM)CityFarmer Wrote:

(04-09-2014, 04:41 PM)CityFarmer Wrote: The Placement Agent, J.P. Morgan (S.E.A.) Limited, has "placed" the 120 mil share to public? The up-to-minute volume today is more than 177 mil shares.

The settlement date is later, but the Share Lending Agreement, allows the Placement Agent to "place" the share out with borrowed shares.

The placement will increase the liquidity of the company share.

(vested)

After a day of "dumping" (placement), the trading of the company share is back to normal.

I thought private placement which is to sell new share to selected main investors to hold a big stake in the company. But then there is lending involves and then the high volume trades in retail market. Anyone able to help expain this interconnections ?

I reckon the Placement Agent has actually "placed" the shares to retail investors, rather to institutional investors. The Share Lending Agreement is to enable the "placement" immediately, pending the settlement

(05-09-2014, 11:15 AM)CityFarmer Wrote:

(05-09-2014, 11:03 AM)corydorus Wrote:

(05-09-2014, 10:01 AM)CityFarmer Wrote:

(04-09-2014, 04:41 PM)CityFarmer Wrote: The Placement Agent, J.P. Morgan (S.E.A.) Limited, has "placed" the 120 mil share to public? The up-to-minute volume today is more than 177 mil shares.

The settlement date is later, but the Share Lending Agreement, allows the Placement Agent to "place" the share out with borrowed shares.

The placement will increase the liquidity of the company share.

(vested)

After a day of "dumping" (placement), the trading of the company share is back to normal.

I thought private placement which is to sell new share to selected main investors to hold a big stake in the company. But then there is lending involves and then the high volume trades in retail market. Anyone able to help expain this interconnections ?

I reckon the Placement Agent has actually "placed" the shares to retail investors, rather to institutional investors. The Share Lending Agreement is to enable the "placement" immediately, pending the settlement

The way they did it is similar to the SIIC's placement exercise. The major shareholder lend the shares to be placed and the transactions were executed through married deal on the announcement day.

Top up placement is actually quite prevalent in HK. The benefit is that money can be raised quickly using the existing shares instead of going through a long process first.

The negative is that in some cases in HK due to "unforseen circumstances" company placement becomes major shareholder placement because at the end of the long process the company couldn't/ didn't issue shares.

The company announced the 9 months result for FY2014 today.

Result : http://infopub.sgx.com/FileOpen/SSG_3Q20...eID=320738
PPT: http://infopub.sgx.com/FileOpen/SSG_3Q20...eID=320740

For 9 months, revenue increased by 5.9%, gross profit by 11.6%, and net profit by 21%, as expected. The increased of GPM and NPM, were mainly contributed by SSS, since total retail area remains the same. The extension of operating hours, better mixed of products, and online store sales helped, IMO

The trend should continue till end of FY2014, but the same growth will not sustain, without an increase in retail area, for FY2015. Let's hope the Tampine store deal will go thru by end Dec 2014. The online store will continue to contribute, IMO.

(happily vested)

(28-10-2014, 09:18 PM)CityFarmer Wrote: without an increase in retail area, for FY2015.

(happily vested)

The Group has signed a new lease for a new store of approximately 4,000 square feet in an amenity centre for foreign workers in the Penjuru area. This store is likely to be operational by mid-November 2014.

http://infopub.sgx.com/FileOpen/SSG_3Q20...eID=320739

(28-10-2014, 09:18 PM)CityFarmer Wrote: The company announced the 9 months result for FY2014 today.

Result : http://infopub.sgx.com/FileOpen/SSG_3Q20...eID=320738
PPT: http://infopub.sgx.com/FileOpen/SSG_3Q20...eID=320740

For 9 months, revenue increased by 5.9%, gross profit by 11.6%, and net profit by 21%, as expected. The increased of GPM and NPM, were mainly contributed by SSS, since total retail area remains the same. The extension of operating hours, better mixed of products, and online store sales helped, IMO

The trend should continue till end of FY2014, but the same growth will not sustain, without an increase in retail area, for FY2015. Let's hope the Tampine store deal will go thru by end Dec 2014. The online store will continue to contribute, IMO.

(happily vested)

The company managed to improve the operating and net profit margin slightly even though gross margin is down 0.5% quarter on quarter. Impressive operational efficiency.

Concerning their China JV, I do not have any expectations that it will add to their bottom line as even Sun-Art Retail's net profit margin is only about 3.2% in China.

(Vested)

(28-10-2014, 09:41 PM)maniac Wrote:

(28-10-2014, 09:18 PM)CityFarmer Wrote: without an increase in retail area, for FY2015.

(happily vested)

The Group has signed a new lease for a new store of approximately 4,000 square feet in an amenity centre for foreign workers in the Penjuru area. This store is likely to be operational by mid-November 2014.

http://infopub.sgx.com/FileOpen/SSG_3Q20...eID=320739

I have missed that.

Anyway, thanks for the highlight...