China Merchants Holdings Pacific

(29-10-2014, 09:43 AM)yenyenpark Wrote: my concern is there are so many convertible in this stock.. how many shares will be converted in near future? how much dilution will that be?

I suggest to read the previous posts of this thread, there are many quality posts on the topic.

IMO, the valid question should be, with the full dilution, will the company still worth the current valuation?

(vested)

(29-10-2014, 10:02 AM)CityFarmer Wrote:

(29-10-2014, 09:43 AM)yenyenpark Wrote: my concern is there are so many convertible in this stock.. how many shares will be converted in near future? how much dilution will that be?

I suggest to read the previous posts of this thread, there are many quality posts on the topic.

IMO, the valid question should be, with the full dilution, will the company still worth the current valuation?

(vested)

thanks. I will read through those old posts..

My old answer... sellers' intention is so clear... it is the intentions of the BUYers that I am more interested...

An Lah
No Worries
GG

(29-10-2014, 10:22 AM)yenyenpark Wrote:

(29-10-2014, 10:02 AM)CityFarmer Wrote:

(29-10-2014, 09:43 AM)yenyenpark Wrote: my concern is there are so many convertible in this stock.. how many shares will be converted in near future? how much dilution will that be?

I suggest to read the previous posts of this thread, there are many quality posts on the topic.

IMO, the valid question should be, with the full dilution, will the company still worth the current valuation?

(vested)

thanks. I will read through those old posts..

Salute our Comrades...

http://infopub.sgx.com/FileOpen/3Q2014-P...eID=323164

China Merchants Holdings (Pacific) posts 45% increase in net profit in 3Q2014
Company recognises a maiden contribution of HK$2.8 million from newly acquired Jiurui Expressway

SINGAPORE, 6 November 2014 – Mainboard listed China Merchants Holdings (Pacific) Limited (“CMHP” or the “Group”) today announced a net profit attributable to shareholders of HK$210.9 million for the third quarter ended 30 September 2014, up 45% from the HK$145.8 million recorded in the previous corresponding quarter. For the first nine months of 2014, net profit attributable to shareholders increased by HK$158.2 million or 35% to HK$608.2 million.

Group revenue for 3Q2014 rose to HK$528.7 million, an increase of 9% from the same quarter a year ago. The revenue growth was largely driven by the consolidation of revenue from the Jiurui Expressway which the Group acquired in September this year, revenue growth from the Yongtaiwen Expressway and higher bank interest income.

Group net profit for 3Q2014 of HK$302.5 million was 35% higher than that of the corresponding period in 2013 principally due to a higher profit contribution from the toll road operations. After taking into account non-controlling interests, net profit attributable to shareholders increased 45% to HK$210.9 million.

http://infopub.sgx.com/FileOpen/3Q2014-R...eID=323163

http://infopub.sgx.com/FileOpen/3Q2014-A...eID=323165

Short quick summary:

Beilun sort of in recovery mode, hitting 30m net profit again

Biggest surprise from jiurui with net profit of 2million,
Here comes the real kicker, profit from jiurui comes only from from about 20days. (Start from 9 sep), your guess on what will comes with a full quarter!

Eps hitting more than 9c+ fully diluted.

Only downside I see is the decrease in nav due to the dilution effects of the cb.

Cheers!

No surprise on Jiurui... that is what CMP is about... buying quality toll roads from stressful holders and restructure it to benefit shareholders...

I m surprise that noone is interested to buy a growing quality cash generating defensive infrastructure asset based in China.

Why does everyone keep worrying about dilution on CBs which is already known? Like I always been asking... its the intentions of the serious buyers that I m more interested.

Vested
Core
Looking to Raise Position
BUY till it HURTS
GG

(06-11-2014, 06:11 PM)Jack31 Wrote: Short quick summary:

Beilun sort of in recovery mode, hitting 30m net profit again

Biggest surprise from jiurui with net profit of 2million,
Here comes the real kicker, profit from jiurui comes only from from about 20days. (Start from 9 sep), your guess on what will comes with a full quarter!

Eps hitting more than 9c+ fully diluted.

Only downside I see is the decrease in nav due to the dilution effects of the cb.

Cheers!

Total current liabilities > total current assets not a concern?

Is there a mistake on page 12 of the report?

Quote from report:
On 9 September 2014, the Company issued 119,374,987 new ordinary shares at S$0.945 per share, being the closing share price on the date of acquisition, as part of the purchase consideration to acquire Jiurui Expressway.

Thought its 0.985?

(06-11-2014, 11:28 PM)Jack31 Wrote: Is there a mistake on page 12 of the report?

Quote from report:
On 9 September 2014, the Company issued 119,374,987 new ordinary shares at S$0.945 per share, being the closing share price on the date of acquisition, as part of the purchase consideration to acquire Jiurui Expressway.

Thought its 0.985?

No mistake here. When the deal was struck cmh priced it at $0.985 with 119374987 shares. On the closing day the mkt price was o.945 but with the dame number of shares. You can interprete it that the seller is getting less but since price is always fluctuating, who knows what it will be later if they don't sell.

(06-11-2014, 11:28 PM)Jack31 Wrote: Is there a mistake on page 12 of the report?

Quote from report:
On 9 September 2014, the Company issued 119,374,987 new ordinary shares at S$0.945 per share, being the closing share price on the date of acquisition, as part of the purchase consideration to acquire Jiurui Expressway.

Thought its 0.985?

i believe the coy is referring to the usage of 0.945 as the fair value CMPH share for consolidation purposes.

If you run the math here. you get this.

=119374987 (no. of shares issued) *0.945 (share price on the day of acquisition) *6.17407 (SGD HKD exchange rate acc. to Oanda on 9 Sept 2014).

which gives you 696.5 mil HKD. note that this is very close to the 693.5 mil HKD which CMPH used for purchase accounting consolidation purpose. if you were to use 0.985 the number would be 726 mil HKD (which cannot be the case).

hope this resolve your doubts.