China Merchants Holdings Pacific

[greengiraffe]

http://www.chinafile.com/multimedia/info...aking-toll

China’s New Roads Are Taking a Toll

If Toll Payments Are So High, Why Is China’s Highway System Strapped for Cash?

• September 29, 2015
  

Very interesting links.... unfortunately can't cut and paste due to too many graphs

Very good sharing, thanks GG.

I have edited the link, to make it click-able.

No worries pleasure always...

[greengiraffe]

CMP, DBS Vickers maintain BUY, target $1.45:

GROWING GREATNESS
Acquisitions to drive bottom line expansion. The recently
completed acquisitions of Jiurui Expressway and three toll
roads in Guangxi Zhuang Autonomous Region should propel
the group’s top and bottom lines in the medium to long term.
We project CMHP’s core earnings will grow by nearly 50%
from HK$675m in 2014 to HK$1,004m by 2017F, driven by
contribution from these recent acquisitions.
Value-accretive acquisitions a potential catalyst. Over the last
four years, the group has acquired six expressways, disposed
off a Class 1 highway (Yuyao Highway), and its property
development business in New Zealand, which have streamlined
and expanded its core expressway business. We believe the
group will continue to look for expressway acquisitions to
expand its business, which could be a catalyst for a re-rating of
its share price.
Consistent and attractive dividend yields. CMHP has been
consistently paying attractive dividends to its shareholders
(7Scts per share per annum in the last two years). We project
CMHP will maintain 7Scts payout for FY15 and FY16 (<85%
payout), translating into an attractive 7.7% yield currently.
Valuation:
Our 12-month target price of S$1.45 is based on DCF
valuation with WACC of 9.8%, and offers >60% upside. We
see the stock re-rating as it delivers earnings growth.
Key Risks to Our View:
Exposure to Chinese economy and regulatory risks. Key risks
for the group are a) its 100% exposure to the Chinese
economy and Rmb, b) its earnings would be negatively
impacted if toll rate tariffs are revised downwards.

[marandaz]

CMP, DBS Vickers maintain BUY, target $1.45:

GROWING GREATNESS
Acquisitions to drive bottom line expansion. The recently
completed acquisitions of Jiurui Expressway and three toll
roads in Guangxi Zhuang Autonomous Region

I thought only the deal on Yangping is completed.... Quite unprofessional IMO

[greengiraffe]

CMP, DBS Vickers maintain BUY, target $1.45:

GROWING GREATNESS
Acquisitions to drive bottom line expansion. The recently
completed acquisitions of Jiurui Expressway and three toll
roads in Guangxi Zhuang Autonomous Region

I thought only the deal on Yangping is completed.... Quite unprofessional IMO

This analyst must be respected as Paul has been following CMP for donkey years so he is an old horse...

[greengiraffe]

CMP, DBS Vickers maintain BUY, target $1.45:

GROWING GREATNESS
Acquisitions to drive bottom line expansion. The recently
completed acquisitions of Jiurui Expressway and three toll
roads in Guangxi Zhuang Autonomous Region

I thought only the deal on Yangping is completed.... Quite unprofessional IMO

http://infopub.sgx.com/Apps?A=COW_CorpAn...letion.PDF

COMPLETION OF THE GUIXING ACQUISITION AND THE GUIYANG ACQUISITION
1. INTRODUCTION
The board of directors (the “Board”) of China Merchants Holdings (Pacific) Limited (the
“Company”) refers to the Company’s circular to shareholders dated 28 August 2015 (the
“Circular”) in relation to, inter alia, the Guixing Acquisition, the Guiyang Acquisition and the
Yangping Acquisition, as well as the announcement dated 23 September 2015 made by the
Company in relation to the completion of the Yangping Acquisition (the “Announcement”).
All capitalised terms used and not defined herein shall have the meanings ascribed to them in
the Circular and the Announcement.
2. COMPLETION OF THE GUIXING ACQUISITION AND THE GUIYANG ACQUISITION
The Board wishes to announce that, as at 15 October 2015, all the Guixing Pre-Conditions
have been satisfied and the Guixing Conditions have been satisfied or waived, as the case
may be, pursuant to the terms of the conditional share purchase agreement dated 23 June
2015 entered into between Guixing SPV, the Guixing Sellers and the Guixing Target (as
supplemented by a supplemental agreement dated 23 June 2015 between the same parties)
in relation to the Guixing Acquisition (the “Guixing SPA”). Accordingly, the Guixing SPA has
become effective and the completion of the Guixing Acquisition shall take place on 16
October 2015, being the date falling one (1) day after the satisfaction or waiver of all the
Guixing Conditions.
The Board also wishes to announce that, as at 15 October 2015, all the Guiyang Pre-
Conditions have been satisfied and the Guiyang Conditions have been satisfied or waived, as
the case may be, pursuant to the terms of the conditional share purchase agreement dated
23 June 2015 entered into between Guiyang SPV, the Guiyang Sellers and the Guiyang
Target (as supplemented by a supplemental agreement dated 23 June 2015 between the
same parties) in relation to the Guiyang Acquisition (the “Guiyang SPA”). Accordingly, the
Guiyang SPA has become effective and the completion of the Guiyang Acquisition shall take
place on 16 October 2015, being the date falling one (1) day after the satisfaction or waiver of
all the Guiyang Conditions.
Accordingly, following the completion of each of the Guixing Acquisition, the Guiyang
Acquisition and the Yangping Acquisition, the Guixing Target, the Guiyang Target and the
Yangping Target are now wholly-owned subsidiaries of the Company and members of the
CMHP Group.
BY ORDER OF THE BOARD
Lim Lay Hoon
Company Secretary
Singapore, 16 October 2015

I think this is what I call seasoned professionalism even if it means anticipating ahead or even if it is mere formality.

Paul is a veteran and one of the main active analysts following CMP. CIMB is the other follower but seems to have left off the coverage following the Chinese mkt meltdown.

Vested
Core Holdings
GG

[Jack31]

Even the website is updated. Very fast.

[greengiraffe]

Even the website is updated. Very fast.

This group of China Merchants has been working diligently and quietly since 2004.

Jiang Yan Fei the spokesperson in most meetings has also been around since 2004. Having moved around CMP in various positions notwithstanding several major appointment changes since 2004.

CMP is the major flagship of China Merchant Huajian, a privately held toll road infrastructure group that holds minorities stakes in uncountable listed cos on mainland and HKSE. Since 2010, CMP has grown leaps and bounds with the injection 51% of YTW that remains a major and consistently growing contributor to the group followed by Beilun expressway that is going through a major upgrade and hopefully should reinstate growth.

Whilst Juirui and the latest 3 roads around Guangxi purchased are deemed higher risks and yet to be proven, it should be viewed as a focused strategy as directed from CCP planning levels given that all major coastal cities roads have largely been owned by other major listings on HKSEs and on mainland. Higher risks should be mitigated by higher returns over time and when the returns become more visible, shareholders should be looking forward to re-rating and compression that is typical of low growth utility / infrastructure stocks.

Most investors are scratching their heads searching for stable growing cashcows. Taking a calculated risks with proven management team track record that last over a decade is a rare pedigree.

Is CMP turning out to be a non brainer gem waiting to be polished?

GG

[Jack31]

And GG is even faster in replying. Lol.
I suspect Paul might be right that 7c will be maintained thru fy17.
Nick point out a Very good point , it doesn't make sense that they issue bonus share and reduce the dividend. If you look at the acq date and bonus issue date, they probably already know that they gonna buy the 3 road when they decide to issue the bonus.

[greengiraffe]

And GG is even faster in replying. Lol.
I suspect Paul might be right that 7c will be maintained thru fy17.
Nick point out a Very good point , it doesn't make sense that they issue bonus share and reduce the dividend. If you look at the acq date and bonus issue date, they probably already know that they gonna buy the 3 road when they decide to issue the bonus.

China is a directed capitalist system. They are keen to model after the Singapore model.

Have to give credit to LKY for this legacy.

Hence, a lot of corporate moves in China should be viewed as planned. How scripted it is will be for us as shareholders and believers to judge.

For such a system that remains plagued by never ending frauds, we will just have to use our judgement to uncover the "trustable" companies.

I have never put so much $ in a mainlander and hence I m convinced and converted. The risks is there but then again stock market is a constant minefield so it should be viewed as assuming calculated risks?

GG

[greengiraffe]

http://www.valuebuddies.com/thread-5531-...#pid120962

CMP is the established cash generating vehicle for exposure to China's ongoing infrastructure developments...