Hisaka Holdings

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#1
Decide to start this thread to discuss and see if anyone can shed light on this company's story or history Big Grin

What's with the RTO of Regal International and Regal Capital in Sg/My (seems like Property company mainly based in Malaysia)?

my quick valuation
Starting Value
Shares 175m
Market cap 33m
Cash 29m
Debt 0m
Net asset 44.5m , $0.25/share

To RTO Regal
Cash -20m
Share +195m @0.55cents
175m/2 = 87.5m (share consolidation)

After RTO
Shares 282.5m
Cash 5m + ??
Debt ??
Assets 44.5m + 200m = 244.5m , $0.8655/share

Current price $0.188 * 2 = $0.376 / future share, $0.49 discount to NAV?

Control of Hisaka will go to the management of Regal Capital.

question is how to value Regal Capitals books.
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
Reply
#1
Decide to start this thread to discuss and see if anyone can shed light on this company's story or history Big Grin

What's with the RTO of Regal International and Regal Capital in Sg/My (seems like Property company mainly based in Malaysia)?

my quick valuation
Starting Value
Shares 175m
Market cap 33m
Cash 29m
Debt 0m
Net asset 44.5m , $0.25/share

To RTO Regal
Cash -20m
Share +195m @0.55cents
175m/2 = 87.5m (share consolidation)

After RTO
Shares 282.5m
Cash 5m + ??
Debt ??
Assets 44.5m + 200m = 244.5m , $0.8655/share

Current price $0.188 * 2 = $0.376 / future share, $0.49 discount to NAV?

Control of Hisaka will go to the management of Regal Capital.

question is how to value Regal Capitals books.
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
Reply
#2
Went to the agm in Jan. Only 3 or 4 shareholders attend. CEO Cheng seems quite nice and was patient throughout the agm even thou some shareholder was asking for extra dividends etc.. End up I think he even arrange for someone to drive the shareholder to the nearby mrt. (cause shareholder complain very far.) Lol. Anyway friendly might not mean he know business

On a serious note,
some issue that I'm concerned with
1) CEO , brother and wife all in board committee.. Mmm..
2) lack of liquidity even after the RTO
3) one condition of agreement state that Regal capital have to have net profit of 7 million for RTO to goes thru. Their past year financial result seems far off.
4) High arrangement fee (9.6million sgd) for the arranger. (only person in the company).

Your calculation shd be more or less there.
Do hope that the RTO will goes thru smoothly.

Vested.
Reply
#2
Went to the agm in Jan. Only 3 or 4 shareholders attend. CEO Cheng seems quite nice and was patient throughout the agm even thou some shareholder was asking for extra dividends etc.. End up I think he even arrange for someone to drive the shareholder to the nearby mrt. (cause shareholder complain very far.) Lol. Anyway friendly might not mean he know business

On a serious note,
some issue that I'm concerned with
1) CEO , brother and wife all in board committee.. Mmm..
2) lack of liquidity even after the RTO
3) one condition of agreement state that Regal capital have to have net profit of 7 million for RTO to goes thru. Their past year financial result seems far off.
4) High arrangement fee (9.6million sgd) for the arranger. (only person in the company).

Your calculation shd be more or less there.
Do hope that the RTO will goes thru smoothly.

Vested.
Reply
#3
Seems like recovering and a surprise interim dividend.
Look like liquidity remain an issue. Any other VB vested in this?
Reply
#3
Seems like recovering and a surprise interim dividend.
Look like liquidity remain an issue. Any other VB vested in this?
Reply
#4
(05-08-2014, 11:03 PM)Jack31 Wrote: Seems like recovering and a surprise interim dividend.
Look like liquidity remain an issue. Any other VB vested in this?

dun think so, no one talk about it until I created the thread for it. Essentially if RTO goes through, the financials will have to be recalculated. If not then there may be an argument taking a position in this stock with a view for bonus dividend from it's cash hoard in the near future.
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
Reply
#4
(05-08-2014, 11:03 PM)Jack31 Wrote: Seems like recovering and a surprise interim dividend.
Look like liquidity remain an issue. Any other VB vested in this?

dun think so, no one talk about it until I created the thread for it. Essentially if RTO goes through, the financials will have to be recalculated. If not then there may be an argument taking a position in this stock with a view for bonus dividend from it's cash hoard in the near future.
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
Reply
#5
(06-08-2014, 12:06 AM)BlueKelah Wrote:
(05-08-2014, 11:03 PM)Jack31 Wrote: Seems like recovering and a surprise interim dividend.
Look like liquidity remain an issue. Any other VB vested in this?

dun think so, no one talk about it until I created the thread for it. Essentially if RTO goes through, the financials will have to be recalculated. If not then there may be an argument taking a position in this stock with a view for bonus dividend from it's cash hoard in the near future.

Yup, for a small cap company, hisaka seems to be holding quite an amount of cash. Another thing I'm concern about is most of the share are in the hand of public, will it become a "no parent child"? Of course there are pros and cons, It might be a personal preference that I prefer company whose management hold substantial stake. Wonder if there is any "Caveat emptor" in the rto as regal holding seems to be sold at a large discount..
Reply
#5
(06-08-2014, 12:06 AM)BlueKelah Wrote:
(05-08-2014, 11:03 PM)Jack31 Wrote: Seems like recovering and a surprise interim dividend.
Look like liquidity remain an issue. Any other VB vested in this?

dun think so, no one talk about it until I created the thread for it. Essentially if RTO goes through, the financials will have to be recalculated. If not then there may be an argument taking a position in this stock with a view for bonus dividend from it's cash hoard in the near future.

Yup, for a small cap company, hisaka seems to be holding quite an amount of cash. Another thing I'm concern about is most of the share are in the hand of public, will it become a "no parent child"? Of course there are pros and cons, It might be a personal preference that I prefer company whose management hold substantial stake. Wonder if there is any "Caveat emptor" in the rto as regal holding seems to be sold at a large discount..
Reply
#6
(11-08-2014, 04:17 PM)Jack31 Wrote:
(06-08-2014, 12:06 AM)BlueKelah Wrote:
(05-08-2014, 11:03 PM)Jack31 Wrote: Seems like recovering and a surprise interim dividend.
Look like liquidity remain an issue. Any other VB vested in this?

dun think so, no one talk about it until I created the thread for it. Essentially if RTO goes through, the financials will have to be recalculated. If not then there may be an argument taking a position in this stock with a view for bonus dividend from it's cash hoard in the near future.

Yup, for a small cap company, hisaka seems to be holding quite an amount of cash. Another thing I'm concern about is most of the share are in the hand of public, will it become a "no parent child"? Of course there are pros and cons, It might be a personal preference that I prefer company whose management hold substantial stake. Wonder if there is any "Caveat emptor" in the rto as regal holding seems to be sold at a large discount..

Management seems to be holding a 21% stake.

However, if you take it as a concert group, it is 25%.

On the Regal RTO, SIAS research is positive. Attaching that.

The point which sticks out is that this transaction was announced in July 2013 and we are now in August 2014.

Yes, there have been announcements on extension of time-frame, final agreement, receipt of approval etc, but, no sign of closure of agreement.

My guess on the reason for the tepid market reaction is because the discount to book value will increase after the acquisition, so, from a PTB of 0.9-1.1 range, it will go to a PTB of 0.7 or lower because it is entering property and construction.


Attached Files
.pdf   SIAS_HISAKA_26 Jul 2013.pdf (Size: 461.94 KB / Downloads: 6)
Disclaimer :-

I am not an investment professional.

I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.

Nothing written here is an invitation to buy or sell any particular stock.

At most, I am handing out an educated guess as to what the markets may do.

The market will always find a new way to make a fool out of me (and maybe, even you!).

Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.

I am not immune to that, so please understand that any past success of mine will probably be followed by failures
Reply
#6
(11-08-2014, 04:17 PM)Jack31 Wrote:
(06-08-2014, 12:06 AM)BlueKelah Wrote:
(05-08-2014, 11:03 PM)Jack31 Wrote: Seems like recovering and a surprise interim dividend.
Look like liquidity remain an issue. Any other VB vested in this?

dun think so, no one talk about it until I created the thread for it. Essentially if RTO goes through, the financials will have to be recalculated. If not then there may be an argument taking a position in this stock with a view for bonus dividend from it's cash hoard in the near future.

Yup, for a small cap company, hisaka seems to be holding quite an amount of cash. Another thing I'm concern about is most of the share are in the hand of public, will it become a "no parent child"? Of course there are pros and cons, It might be a personal preference that I prefer company whose management hold substantial stake. Wonder if there is any "Caveat emptor" in the rto as regal holding seems to be sold at a large discount..

Management seems to be holding a 21% stake.

However, if you take it as a concert group, it is 25%.

On the Regal RTO, SIAS research is positive. Attaching that.

The point which sticks out is that this transaction was announced in July 2013 and we are now in August 2014.

Yes, there have been announcements on extension of time-frame, final agreement, receipt of approval etc, but, no sign of closure of agreement.

My guess on the reason for the tepid market reaction is because the discount to book value will increase after the acquisition, so, from a PTB of 0.9-1.1 range, it will go to a PTB of 0.7 or lower because it is entering property and construction.


Attached Files
.pdf   SIAS_HISAKA_26 Jul 2013.pdf (Size: 461.94 KB / Downloads: 6)
Disclaimer :-

I am not an investment professional.

I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.

Nothing written here is an invitation to buy or sell any particular stock.

At most, I am handing out an educated guess as to what the markets may do.

The market will always find a new way to make a fool out of me (and maybe, even you!).

Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.

I am not immune to that, so please understand that any past success of mine will probably be followed by failures
Reply
#7
the SPA was enter into in dec 2013. If I didn't remember wrong it's valid for a year. So by dec 2014 RTO still not goes thru then...
Not too worried now since it's business seems to be picking up..
I did ask the CEO during the agm how confident was he that the RTO will goes thru, didn't dig out much thou, just a general reply that too much uncertainty and much will depends on his directors and the arranger connections.
Don't read SIA report anymore since they give the transparent runner up award to ERAT.. -_-"
Really 害死入。I'm sure many people went in after the announcement they got the award.. I can still accept if they give most undervalue stock/best company etc.. But ,
"Most transparent"??? Omfg.. Lol.. Sorry out of topic..
Reply
#7
the SPA was enter into in dec 2013. If I didn't remember wrong it's valid for a year. So by dec 2014 RTO still not goes thru then...
Not too worried now since it's business seems to be picking up..
I did ask the CEO during the agm how confident was he that the RTO will goes thru, didn't dig out much thou, just a general reply that too much uncertainty and much will depends on his directors and the arranger connections.
Don't read SIA report anymore since they give the transparent runner up award to ERAT.. -_-"
Really 害死入。I'm sure many people went in after the announcement they got the award.. I can still accept if they give most undervalue stock/best company etc.. But ,
"Most transparent"??? Omfg.. Lol.. Sorry out of topic..
Reply
#8
The RTO Seems to be more or less a done deal. Slight change in spa, 3 to 1 consolidation instead on 2 top 1 which will probably result in more liquidity problems. Do hope the management have some plans in mind to boost up the liquidity..
Reply
#8
The RTO Seems to be more or less a done deal. Slight change in spa, 3 to 1 consolidation instead on 2 top 1 which will probably result in more liquidity problems. Do hope the management have some plans in mind to boost up the liquidity..
Reply
#9
Roughly looking thru regal holdings account now. Loss of 0.57m in 1Q 14. However they also record a similar loss in 1Q 13 but manage a 22m net profit for fy2013. Wasted their 2Q 14 result is not shown. Property valuation at 529m..
All value in rm.
Very thick book, guess will need some time to absorb. Any other VBs looking at it? Or any other VBs who have encounter similar RTO? Any comments are greatly appreciated.
Reply
#9
Roughly looking thru regal holdings account now. Loss of 0.57m in 1Q 14. However they also record a similar loss in 1Q 13 but manage a 22m net profit for fy2013. Wasted their 2Q 14 result is not shown. Property valuation at 529m..
All value in rm.
Very thick book, guess will need some time to absorb. Any other VBs looking at it? Or any other VBs who have encounter similar RTO? Any comments are greatly appreciated.
Reply
#10
thanks for doing the hard yards Jack31, keep us informed with your valuation results..

Hisaka is pretty cashed up but I would wait a couple more quarters until the RTO is really done deal and the new company declares its first dividend before jumping in, which will also be dependent on other valuation factors. The change of management would also be a huge factor.

Too much of a mystery meat at the moment.
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
Reply
#10
thanks for doing the hard yards Jack31, keep us informed with your valuation results..

Hisaka is pretty cashed up but I would wait a couple more quarters until the RTO is really done deal and the new company declares its first dividend before jumping in, which will also be dependent on other valuation factors. The change of management would also be a huge factor.

Too much of a mystery meat at the moment.
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
Reply


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