Eastern Holdings

[FFNow]

I just took a look at Eastern's AR 2011. In the operating cash flow statement, $43.465 mil was deducted for "gain on disposal of a subsidiary's business" (for Eastern Directories) and this amount with $35,000 amounting to a total of $43.5 mil was added back to investing activities statement under "proceeds from disposal of a subsidiary's business".

I don't have accounting background but why is this done? It's not left under operating cash flow since it was part of investments and not daily operations?

[dydx]

Just checked my bank account and noted a credit from Eastern Holdings' $0.00333/share Final dividend for FY11 (ended 31Mar11). Feeling good as there is some extra money for weekend shopping!

[orang]

I just took a look at Eastern's AR 2011. In the operating cash flow statement, $43.465 mil was deducted for "gain on disposal of a subsidiary's business" (for Eastern Directories) and this amount with $35,000 amounting to a total of $43.5 mil was added back to investing activities statement under "proceeds from disposal of a subsidiary's business".

I don't have accounting background but why is this done? It's not left under operating cash flow since it was part of investments and not daily operations?

Erm......relax, man

The Cashflow Statement begins with the header - Operating activities

It kicks off with a Loss before income tax of 0.177m and bumped up with a profit of 46.673m from discontinued operations (plural) to arrive at a profit before tax of 46.496m which is for the year

Ok, this is only an accounting or book profit - not cash profit or cash inflow

So adjustments are needed to arrive at a operating cashflow (inflow or outflow) before movement in working capital

The gain on disposal of a subsidiary's business - 43.465m - is only part of the aggregate gain from discontinued operations.

The other item of 43.5m is the actual cash received

Hope this helps

[ngcheeki]

Eastern Holding has issued a profit warning on yesterday, 30 September evening. The following is extracted from the announcement.

"...The lower profits are mainly attributable to discontinued operations following the disposal of the business and assets of the Company’s subsidiary, Eastern Directories Pte Ltd, as previously announced on 11 June 2010. Further details of the Group’s financial performance will be disclosed when the Group announces its unaudited first half financial results for 1HFY2012 on or before 15 November 2011"

1H of previous financial year
Revenue ('000) S$18,261.00
Profit('000) S$3,236.00

If I'll be contented if the company can achieve a small profit out of their existing property and publishing business. From on what was hinted by Stephen Tay during the last AGM the dividend of 0.333 cents is likely to maintain. However, there'll not be special ang bow for the company 30th anniversary. Going forward, the company is looking to expand its selfstore and invest in property business especially oversea investment in Mongolia due to the booming mining industrial and high return.

See the following for more details:
http://info.sgx.com/webcoranncatth.nsf/V...9002E594E/$file/ProfitGuidance1HFY2012.pdf?openelement

[brattzz]

with a warchest, it might be best to concentrate in property development in sg, while looking overseas (mongolia?)...

[ngcheeki]

Update: Riz Haven Nov 11
Cumulative Units Sold to-date: 33
Median Price ($psf) in the Month: S$747
Units sold in Nov: 1
Cumulative Units Launched but Unsold: 0
Total Number of Units: 33

Look like Eastern Holding is cutting price to push sale. By the way, Riz Haven does not seems to make money based on their sale price .

I was disappointed that the company did not pay interim dividend of 0.3 cent during the 1H result. It seem likes the company has been busying investing in properties (cash flow statement: Addition to investment properties S$10,451 ) and this causes the company from net cash to net debt position .

See the following for more information.

http://info.sgx.com/webcoranncatth.nsf/V...50007DFF2/$file/EHL_Q2_FSA_Final.pdf?openelement

[dydx]

Based on 30Sep11's NAV/share of $0.2413, Eastern Holdings at the last done price of $0.162 does have solid asset-backing and a good cushion against a fall in property prices. If we apply CMV on the group's property assets, RNAV/share would be in excess of $0.35. That makes Eastern Holdings a steal!

[ngcheeki]

The Group’s FY2012 results might be adversely affected by amongst others, a revision to the accounting estimates resulting in an impairment of the value of intangibles and an impairment of the value of a development property of the Company.

The Group expects to report a loss for FY2012 as a result of the above

http://info.sgx.com/webcoranncatth.nsf/V...800321A1E/$file/EHL-Ann-ProfitWarning-24May12.pdf?openelement

[ngcheeki]

As expected, there is no dividend for the financial year ended 2012. However, the result is better than what I had expected (i.e. less loss and better balance sheet with net cash instead of net debt). The company trade industrial properties with an additional purchase of S$7.3 million of light industrial buildings and gain of S$2,74 million. Furthermore, the company goes into mongolia to develop/trade properties. The following is a short summary of the FY2012 result.


Revenue ('000): $30,181.00 (Go into property development in Mongolia)
Loss('000): -$620.0000 (Write down of S$3,416K development properties in Singapore, I suppose it is the project in Grove Residence (Holland road))
EPS: -$0.0021
NAV (S$): $0.2388
NTA (S$): $0.2342
Net Cash('000): $6,713.00 (Due to collection of sale proceed from fully sold Riz Haven)
Net Cash per shares: $0.0224
Net Current Asset Per Share: $0.0938
Price / Book Value: 0.5445

Outlook 2012:
Continued uncertain global economic outlook with the European debt crisis and the introduction of successive cooling measures for the Singapore property market have resulted in challenging market conditions for the property and the publishing sectors. Notwithstanding, the Group continues to look for ways to improve its performance.

http://info.sgx.com/webcoranncatth.nsf/V...E004C731E/$file/EHL-Ann-Q4Results.pdf?openelement

[ngcheeki]

Trading Halt this morning. Major asset disposal or acquisition?

http://info.sgx.com/webcorannc.nsf/Annou...endocument