(27-08-2015, 01:14 AM)dydx Wrote: (27-08-2015, 12:29 AM)BlueKelah Wrote: (26-08-2015, 11:19 PM)dydx Wrote: FY15 (ended 30Jun15) full-year result just out.....
http://infopub.sgx.com/FileOpen/LanTroVi...eID=367245
Lower profits mainly due to higher manpower costs, and Final dividend cut to $0.013/share (vs. $0.03/share in FY14).
Lantrovision ended the year with a higher net cash reserve exceeding $87.0m (equivalent to $0.323/share). If we include a portion of trade receivables as near cash, the adjusted net cash reserve would exceed $100.0m. There is indeed a mini-bank within Lantrovision Group.
mini-bank? haha what a joke. dun try to fool the noobs on VB lah. we all know a lot of the cash is used to pledge for the projects they take on, so even though its there its not usable or distributable on demand.
You can use discounted trade receivables as an estimation for NCAV calculation purposes but trade receivable is under asset class it is not cash per se. Another misrepresentation.
lousy quarter then say lousy quarter lah. Either they find a way to reduce manpower cost or else we are in for a period of lower profits and dividend payouts. It seems like YJY may be wanting to push the price down by cutting dividend. Lantro could afford 3cents again if they wanted, EPS 3.19c what.
lucky divested most when it was 50-60cents only free shares now...
Instead of talking based on thin air, I invite you to review Lantrovision's FY14 AR.....
http://infopub.sgx.com/FileOpen/LanTroVi...leID=23555
In Note 13 (p66) on Cash and Cash Equivalents, it is clearly spelled out that only approx. $44k of FDs had been pledged to banks for the issuance of a bank guarantee and performance bond. So your speculation that the group's cash reserve "is not usable or distributable on demand" appears totally off the mark.
In Note 36 (iv) (p88) on Credit Risk, it is clearly spelled out that "The Group's major customers' base consists primarily of major financial institutions and multi-national corporations in Singapore, Malaysia and Hong Kong." and "The average credit period...is 30 days." Based on these parameters, I think it is more than reasonable to assume that a big portion of Lantrovision's trade receivables will safely turn into cash in good time, and therefore has the characteristics of near cash.
If you border to read the AR and check the details, you will be able to understand things better!
Do not think it is ever reasonable to treat trade receivables as cash, perhaps other VB can contribute their opinion and thoughts on this (major financial institutions and MNC can also fail and go bankrupt) As an asset yes, but as cash its another thing all together. F.D on the other hand is reasonable to say it is like cash as you can cancel your FD and take the money out with some small penalty if the term has not completed.
Yeah I bother to read stuff but I dun bother to mislead other VBs. Maybe I phrased it wrongly when i used the word pledged. It has nothing to do with whats recorded on the quarterly about pledged FD. To quantify, what I said about the "pledged" lets refer to this report from UOBKayhian last year, which you must have already read and know but still choose to mislead people by trying to show that the cash is accessible like a "mini-bank". It was posted by Nick last year.
http://research.uobkayhian.com/content_d...5500726053
from page 6
[We understand from management that Lantrovision maintains a strong cash balance
as the business may require a lot of working capital at times (Lantrovision may need
to pay its suppliers first, while its customers which are major MNCs may pay only 30-
60 days at the end of the project depending on the credit terms). In addition, the huge
cash balance also serves as a confidence booster to Lantrovision’s customers, as a
sign of the stability of the company. As the cash pile grows, we believe shareholders
may eventually be rewarded once the management believes the company has
sufficient cash to meet its working capital and investment needs.]
From this its shows the high cash and FD are needed to obtain and commence their contracts and will in all likelihood not be distributed to OPMI/shareholders. They will be "restricted" somewhat in using it.(makes opmi look like donkey with a carrot hanging in front)
Of course Lantro doesn't say exactly how much is "sufficient cash" and "may eventually be rewarded" does not exactly instill much confidence. The recent cut in dividend below even previous 2c is also telling.
Insinuating that the cash pile is a "mini-bank" is a joke, there is no way Lantrovision is going to use the cash or FD to do what banks do. Or maybe you are thinking that one day they could give out loans like what YZJ does??
Homepage
PR Newswire
