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no big asset sale gain, how to reward Jopie Ong with fat bonus.
Jopie Ong could be unhappy, if there was not fat bonus.
topspring and shui on both are deep under water, if written back can count as profit for bonus, did they cut pay for writing down the investment? like that, not fair.
as for Metro City BJ's bad performance, the size and location of Metro City BJ has some effect as well. the size is too large for the catchment, as the surrounding residential development is a bit slow and the mall is not really conveniently accessed.
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04-04-2012, 12:54 PM
(This post was last modified: 04-04-2012, 01:00 PM by ngcheeki.)
DMG Report on Metro Holdings:
Scoop of the Day: Metro recently announced that it has completed the sale
of its 50% stake in Metro City Beijing, a suburban retail mall in the Chaoyang
district, for Rmb688.5m (S$132m). As a result of the transaction, the group
will realise a pretax gain of S$87.4m, with an estimated boost of 9¢/share to
its NAV. Net cash, on our estimates, will increase from the current 36¢/share
to 50¢/share, representing almost 70% of its market capitalisation. The
group’s remaining property portfolio comprised some $600m of prime
commercial real estate in China, including EC Mall (Beijing), Metro City and
Metro Tower (Shanghai) and GIIE Tower (Guangzhou) as well as various
property joint ventures/investments with Tesco and Top Springs. The latest
deal further cements Metro’s track record as a real estate investor in China,
following on from a string of earlier divestments including One Financial Street
and Metropolis Tower in Beijing which reaped handsome returns. Moving
forward, the group will continue to deploy its capital opportunistically in China,
targeting investments in the commercial segment in tier-1 and tier-2 cities. We
continue to like the stock as a play on domestic consumption in China,
management’s proven track record in property investments and its strong
balance sheet. Our target price of 89cts is premised on 30% discount to its
RNAV, offering 20% upside from current levels. Metro will be reporting its full
year results in May, and going by past records, the group is likely to reward
shareholders with special dividends from the hefty profits from its latest sale.
(Goh Han Peng)
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(04-04-2012, 12:54 PM)ngcheeki Wrote: DMG Report on Metro Holdings:
Scoop of the Day: Metro recently announced that it has completed the sale
of its 50% stake in Metro City Beijing, a suburban retail mall in the Chaoyang
district, for Rmb688.5m (S$132m). As a result of the transaction, the group
will realise a pretax gain of S$87.4m, with an estimated boost of 9¢/share to
its NAV. Net cash, on our estimates, will increase from the current 36¢/share
to 50¢/share, representing almost 70% of its market capitalisation. The
group’s remaining property portfolio comprised some $600m of prime
commercial real estate in China, including EC Mall (Beijing), Metro City and
Metro Tower (Shanghai) and GIIE Tower (Guangzhou) as well as various
property joint ventures/investments with Tesco and Top Springs. The latest
deal further cements Metro’s track record as a real estate investor in China,
following on from a string of earlier divestments including One Financial Street
and Metropolis Tower in Beijing which reaped handsome returns. Moving
forward, the group will continue to deploy its capital opportunistically in China,
targeting investments in the commercial segment in tier-1 and tier-2 cities. We
continue to like the stock as a play on domestic consumption in China,
management’s proven track record in property investments and its strong
balance sheet. Our target price of 89cts is premised on 30% discount to its
RNAV, offering 20% upside from current levels. Metro will be reporting its full
year results in May, and going by past records, the group is likely to reward
shareholders with special dividends from the hefty profits from its latest sale.
(Goh Han Peng)
I think we do our own work better. Analysts are highly paid but we still end up checking their mistakes.
Based on 3Q12 results, excluding metro city bj earmarked for sale, the following are statistics:
i) cash - 413.9m (49.9 cents/share);
ii) pledged bank & FD - 36.2m (4.4 cents/share);
iii) short term borrowings - 53.0m (6.4 cents/share);
iv) long term borrowings - 110.6m (13.3 cents/share).
Net cash excl pledge bank & FD - 30.2 cents / share, incl 34.6 cents/share.
Metro City BJ is sold for RMB 688.5m (metro 50% share) - S$137.7m or 16.6 cents/share.
Net assets 56.8m or 6.9 cents/share.
Net increase 9.7 cents/share so post sales will be 39.9 cents or 44.3 cents. Note amount exclude valuation of liquid investments and collateral assets that is being recovered after falling due for more than 2 years.
The main issue now remains if Metro board will return excess $ to help close valuation gap between mkt and book value.
Wait for final results announcements.
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first, why exclude pledged fix and bank deposits? If you repay all your debt, why would Metro continue to pledge its fix and bank deposit as the pledge is to secure the debt?
second, all 137.7 million are cash for Metro. There is no need to remove its equity part as the equity would turn into cash as well.
so there is nothing too wrong about DMG's calculation except minor adjustment.
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(04-04-2012, 01:57 PM)freedom Wrote: first, why exclude pledged fix and bank deposits? If you repay all your debt, why would Metro continue to pledge its fix and bank deposit as the pledge is to secure the debt?
second, all 137.7 million are cash for Metro. There is no need to remove its equity part as the equity would turn into cash as well.
so there is nothing too wrong about DMG's calculation except minor adjustment.
pledged fix and bank deposits are supposedly linked to $ that of other loans that Metro has undertaken for other properties. Theoretically, these are sums that rightly belong to Metro but they have no access to unless they retire all these loans. what is the rationale, need to clarify with mgt.
http://info.sgx.com/webcoranncatth.nsf/V...200425705/$file/divestmentmetrocitybeijing.pdf?openelement
Thanks freedome for highlighting my oversight. If refer to above announcement, RMB 688.5m is all to Metro less deferred taxes of S$16.1m (capital gains taxes). This is notwithstanding the fact that there has been Metro returning buyer's deposit to buyer and buyer prepaying Metro's liabilities linked to Metro City BJ to satisfy complicated sales conditions.
So net cash excl pledged deposits and FD now at 44.9 cents/share and 49.3 cents/share including.
Your kunghu really kilat.
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Thanks for all of you guys postings.....
By the way, both of you already retire....I don't have so much time to do all these???
Perhaps can ask you guys to involve in analysis of index HSI stocks which I think is good as they move up fast and down fast too....
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broke resistance of 75cts. Next tgt 80cts.
Personal opinion only.
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broke resistance of 75cts. Next tgt 80cts.
Personal opinion only.
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Why Saw Piak piak never join Metro? Jopie should step down. Dunno what he is doing these days...if Saw piak piak join metro, metro price can go higher!
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She worked for Metro in the 80's under Ong seiw Hiong.
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