Global Investments

[mrEngineer]

Thanks for the clear breakdown. It explains why that the price always goes down and at the same time yield somehow goes up. One possibility is global investments to be bought over by someone else to realise it's value. Question is who will acquire an investment fund? Another is that it realises some of its equities investments returns and then issue big dividends. I wonder which will come first?

[john]

If the Fund Manager can be satisfied with yearly capital increase fm issue of dividend scrips instead of Rights issue as in 2014, then it is fine with me. So have increased my stake today.

Number of Outstanding Shares
FY2010 = 393,006,086
FY2011 = 550,208,520
FY2012 = 825,312,780
FY2013 =1,191,982,617
FY2014 =1,334,472,601

New Shares Issued: Dividend Scrip
2013 = 26,103,375 (Dividend Scrip; Issue Price = SGD 0.1522 per share) = 2H2012 dividend
2014 = 90,304,464 (Dividend Scrip; Issue Price = SGD 0.130 per share) = 2H2013 dividend
2014 = 52,185,520 (Dividend Scrip; Issue Price = SGD 0.130 per share) = 1H2014 dividend

NPAT (SGD million)
FY2011 = 12.2
FY2012 = 19.1
FY2013 = 28.8
FY2014 = 24.3 (Down 15.6%)

EPS (SGD cent)
FY2011 = 2.34
FY2012 = 2.45
FY2013 = 2.82
FY2014 = 1.92 (Down 31.9%)

Return on Equity (ROE):
FY2011 = 9.0%
FY2012 = 11.2%
FY2013 = 12.5%
FY2014 = 8.8% (Down 29.6%)

NAV per share (SGD cents)
FY2010 = 31.0
FY2011 = 27.2
FY2012 = 23.0
FY2013 = 20.6
FY2014 = 21.3 (UP 5.6% - I think mainly due to accounting reclassification of Ascendos – from being an associate to “available for sales financial assets)

DPS (SGD cents):
FY2010 = 1.0
FY2011 = 1.5
FY2012 = 1.5
FY2013 = 1.5
FY2014 = 1.5

Dividend Distribution = Equivalent Cash Amount ( SGD million):
FY2010 = 3.9
FY2011 = 8.3
FY2012 = 12.4
FY2013 = 17.9
FY2014 = 19.6

OCF + Gain on Sales of Investments – Dividend Distribution :
FY2014 = 11.558 + 6.450 – 19.6 = - 1.6 million (Deficit)

Comments:
1) For FY2014, NPAT, EPS and ROE dropped, -15.6%, -31.9 and -29.6% respectively
2) NAV per share increased 5.6% y-o-y (I guess due mainly to accounting reclassification of Ascendos – from being an associate to “available for sales financial assets)
3) There was no Right-Issues in 2014, nevertheless, number of shares issued have increased considerably via Dividend Scrip Scheme.
4) Accounting profits seem enough to cover DPS of 1.5 cents in 2014– but from cash flow perspective, OCF plus gain on sales of investments is not enough - if all dividends were to be paid in cash.
5) Cash Dividend yield of DPS=1.5 cent seems very attractive - scrip dividend yield is even more attractive ~ Question is how long could this DPS = 1.5 cents be maintained, with increasing number of new shares being issued each year ?.

(not vested)

[crow123]

Someone selling at a wrong price? a sudden dropped of 0.009

[Gaudente]

Someone selling at a wrong price? a sudden dropped of 0.009

it's just XD 0.0075

[GiraffeValue]

Below 0.140 = Chiong AH!

[a74henry]

Most likely to join 2 shares to form 1 share so as to trade above $0.20

[desmondxyz]

http://infopub.sgx.com/FileOpen/10_20150...eID=338561

Very interesting announcement. Company intends to comply with the rule but no share consolidation.

1) what's the concern about share consolidation?
2) what other possible moves to boost the share price above 0.2?

[FatBoi]

http://infopub.sgx.com/FileOpen/10_20150...eID=338561

Very interesting announcement. Company intends to comply with the rule but no share consolidation.

1) what's the concern about share consolidation?
2) what other possible moves to boost the share price above 0.2?

My uneducated guesses.
1) maybe liquidity. certainly not costs associated with share consolidation because SGX is waiving corporation action fees arising from share consolidation to meet MTP requirements.
2) acquisitions, special dividends are possible

[sgpunter]

Yes I agree it is very interesting that they intend to comply with the MTP requirement but do not intend to consolidate shares.

Not quite sure how they can do that. A special dividend will only be a temporary measure to raise price which will correspondingly drop after XD. Acquisitions are always dicey and I have not seen an acquisition by any company that has resulted in a consistent 45% price increase which is roughly what is needed to meet $0.20 requirement.

What I am speculating on is either: (1) Global Investments is unwound just like MIIF (2) Injection of assets by Temasek Holdings which is linked to Global Investments

[ghchua]

If Global Investments is going to unwind, why are they still doing the scrip dividend scheme? Need more funds to unwind?