TTJ Holdings

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If dormitory segment really close shop in Jan 2017, I sincerely hope that TTJ can do the following further optimisations to enhance shareholders’ value:

Assuming at that point of time, balance sheet roughly the same as end of FY15:
- currents assets of 128 mil
- cash of 84 mil
- equity of 129 mil
- 349.5 mil shares

Assuming that the steel business will require average current liabilities of 30 mil
Assuming a current ratio of 2 is to be maintained
Assuming steel business can do 11 mil net profit on average = 3 cents

1. Return another 68 mil as ‘ordinary’ dividends back to share holders = 19 cents
- current ratio becomes 2
- equity becomes 61 mil
- average ROE become 16%
- PE of 12 would give a price that is 90% premium over book = 116 mil = 33 cents

2. Stick to payout ratio of more than 80%= 8.8 mil = 2.4 cents = 7% yield over 33 cents