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26-10-2015, 01:29 PM
To all of you who didn't attend the AGM last week, the chairwomen took great lengths in answering shareholders re the sale of Mahkota rumour. The co has continuously receive offers all the time but lately it has been coming in fast and furious. Understandable considering the M&A that's going on. In the past the co has informally reject all these offers. However lately with so many serious offers the board took a decision that they should have a formal process to entertain and review all these offers to be fair to minority shareholders which I thought is considerate of them in case a ridiculous high offer is thrown to them. Hence an outside banker is appointed to help them screen for them and handle it formally. The board is not seriously thinking of selling any part of the business. Their emphasis right now is grow, grow, grow the co and they are quite optimistic(growth demand is assured with the aging population) even though they pain a pessimistic picture from the upcoming few hospitals that is coming up in Melaka and JB. these new hospitals has started poaching their staffs.
As for div, many shareholders was pressing for one(including mano). Mgt explained 2 factors that is restraining it.
1. they need cash to grow; both the hospitals are expanding and will need more than just the bldgs. although this was a strong argument b4 but not with the co going into net case this coming FY.So the co is quite conservative in this aspect which is qood.
2. the weakening RM force them not to repatriate/convert to S$(needed to pay div). this I think makes sense at this time when the RM has already weaken so much. shouldn't be selling RM and play the forex game. wait for a better time to do so. Currently the co is naturally hedge.
after all said and done, the bd heard loud and clear that the co should consider paying a div no matter how small and they will seriously consider it. My sense is they will in next FY if the RM stabilises.
Overall I am quite positive of the co and believed that OPMI is aligned with the owners. Just hope that the co don't get bought out by a bigger player. Its a case of 1 time gain vs a continuous growth story. HMI reminds me of Riverstone. Took 5 yrs b4 it skyrocketed. I am prepared to wait 5 yrs for HMI....long term investing right?
As for div, many shareholders was pressing for one(including mano). Mgt explained 2 factors that is restraining it.
1. they need cash to grow; both the hospitals are expanding and will need more than just the bldgs. although this was a strong argument b4 but not with the co going into net case this coming FY.So the co is quite conservative in this aspect which is qood.
2. the weakening RM force them not to repatriate/convert to S$(needed to pay div). this I think makes sense at this time when the RM has already weaken so much. shouldn't be selling RM and play the forex game. wait for a better time to do so. Currently the co is naturally hedge.
after all said and done, the bd heard loud and clear that the co should consider paying a div no matter how small and they will seriously consider it. My sense is they will in next FY if the RM stabilises.
Overall I am quite positive of the co and believed that OPMI is aligned with the owners. Just hope that the co don't get bought out by a bigger player. Its a case of 1 time gain vs a continuous growth story. HMI reminds me of Riverstone. Took 5 yrs b4 it skyrocketed. I am prepared to wait 5 yrs for HMI....long term investing right?