Hong Leong Asia

[level13]

Apparently just its 39% stake in ChinaYuchai, is already worth almost 120% of HLAsia entire MktCap based on its sub70c price two days ago.

at us$14, and us$1=S$1.43 forex
a 39% stake is worth some s$317.8m (40.7m shrs * us$14 * 1.43 * 39% = 317.77)

At curr 93c, HLAsia entire MktCap now rose to S$347M
at sub70c price over last two mths, HLAsia.s MktCap is only around S$260m

so rest of its biz are almost free....

 
found this story below

http://seekingalpha.com/insight/global-i...ke-slumber

Thanks for sharing the link. 
I was beginning to wonder what the optimism for the past 2 days is about. 

There is no denying that Yuchai is the only crown jewel. The Xinfei unit is bleeding badly and the rest of the business
only made little profits. 

That said, even Yuchai's profit is on a downtrend looking at the past 5 - 6 years. 
I must say that the share price below $0.7 is slightly on the low side. But however, at nearly $1 now, any safety margin would have disappeared
so there is no point buying in. Frankly, the prospects of HLA isn't that bright. If one is to value HLA, he/she should write off Xinfei unit down to zero.

There are many people with $$$ on the sidelines waiting to enter the market. So once a new re-freshing report comes out to identify a low value hidden gem everyone piles on to it in a flash. Its good if one can enter at the early stages of the euphoria. But dont be the one left holding onto the baby when the party stops!

[specuvestor]

Another example of Mr Market snoozing or depressive...

IIRC the problem with Yuchai is the Structure. It is majority owned by the municiplal govt and in the past they even had trouble paying dividend cause the government refuse to pay out. HLA claim they control the company hence consolidated the revenue.

But this is old info. Maybe things had changed. And possibly the market is saying the Structure is changing. (or not)

[Vseeker]

Another example of Mr Market snoozing or depressive...

IIRC the problem with Yuchai is the Structure. It is majority owned by the municiplal govt and in the past they even had trouble paying dividend cause the government refuse to pay out. HLA claim they control the company hence consolidated the revenue.

But this is old info. Maybe things had changed. And possibly the market is saying the Structure is changing. (or not)

But it sure makeup by getting Tasek payout tons of DIVs
Below in RM ie MYR
FY2014: eps 86.46 sen / Payout 170 sen
FY2015: eps 75.11 sen / Payout 110 sen
9m into 2016: eps 39.66 sen / Payout 30 sen

Q3 asat Sep2016
Cash = 188.673m vs Borrowings of only 6.243m
Nav = RM5.30 pShr
NTA = RM5.29 pShr


At today closing of RM12.60, MktCap=RM1526m  https://www.bloomberg.com/quote/TC:MK
using S$1.00=RM3.13 forex,
so HLAsia's 74% stake in Tasek is worth: 1526m * 74% / 3.13 = S$360m

and HLAsia actually had a 40.19% stake in CYI asat July2016
at price us$14 and us$1.00=s$1.43 forex
a 40% stake in CYI is now worth 40.7 * 14 * 1.43 * 40% = S$326m

at today(12Jan2016) closing of s$0.93,
HLAsia's MktCap is now S$348m, up some 34% from the s$260m level it was just two days ago.

[specuvestor]

So the question is what changed in the last 2 days, or what is the appropriate guesstimate discount for the holdco

[karlmarx]

No change in performance for HLA's respective business units. CYI continues to be the only bright spark. Losses continue for HLA's shareholders:

http://infopub.sgx.com/FileOpen/SGXNet%2...eID=466618

The difference between the market value of the listed entities in HLA, and the market value of HLA, has grown a little. And while the market value of Tasek and YCI combined is more than HLA, shareholders of HLA will not be able to benefit from this unless 1) third parties offer to takeover Tasek or YCI, or 2) Hong Leong Group offers to privatise HLA.

But why would Hong Leong Group offers to privatise HLA? It would make more sense for them to put their money into more profitable businesses, such as buying more of CYI.

A long wait time should be expected to avoid disappointment.

[cyclone]

Hong Leong Asia to take cement maker Tasek private

By: The Edge Financial Daily
29/05/19, 03:43 pm

KUALA LUMPUR (May 29): Singapore-listed Hong Leong Asia (HLA), which controls about 80.8% of cement maker Tasek Corp via two wholly-owned subsidiaries, wants to take Tasek Corp private in a deal worth an estimated RM128.61 million, based on the offer price of RM5.50 for every ordinary as well as preference share.

This is the second takeover exercise involving a cement company in the last month, after YTL Corp’s unit, YTL Cement, acquired stakes in Lafarge Malaysia for RM1.63 billion or RM3.75 per share.

In a stock exchange filing yesterday, Tasek said it had received an unconditional voluntary takeover offer from HL Cement (Malaysia) (HLCSB) and Ridge Star (RSL) — the two subsidiaries which HLA uses to control Tasek — to acquire the remaining shares they do not own in the cement maker.

Together, HLCSB and RSL presently hold 97.89 million ordinary shares in Tasek, representing 80.8% of the total issued and paid-up 121.14 million ordinary shares (excluding treasury shares). They also have 211,050 or 63% of Tasek’s total issued and paid up 335,000 preference shares. This means the takeover will involve the remaining 19.2% ordinary shares and 37% preference shares.

Tasek’s board is helmed by Kwek Leng Peck as its non-executive chairman. Kwek is also the executive chairman of HLA. Kwek joined Tasek’s board in June 1984 and has been Tasek’s chairman since April 2009.

Tasek said the offer price of RM5.50 per share represents a premium of 8.06% over the company’s five-day volume-weighted average price, up to and including May 27, of RM5.09. It is also 8.91% more than the stock’s closing price of RM5.05 yesterday, which gave it a market value of RM611.77 million.

In addition, it is a premium of 26.19% over the company’s net assets per share of RM4.34, as at end-March this year.

More details in https://www.theedgesingapore.com/hong-le...ek-private

[¯|_(ツ)_/¯]

HLA@$1
China Yuchai International to Pay US$1.70 Per Share Cash Dividend for FY2020

filed under Form 6-K (Report of Foreign Private Issuer) today by China Yuchai International Limited, a subsidiary of Hong Leong Asia Ltd., with the United States Securities and Exchange Commission.

https://links.sgx.com/FileOpen/CYD%20cas...eID=670825

Stay home and stay safe, everyone.