Lai Sun Garment (International) ( 00191.HK)

[soros]

The shares are listed on the HK stock exchange closed today at $1.73 and appears to be heading north.

The NAV = $7.29 /share  which means the shares are substantially undervalued.  The past dividend record is mean to  scrooge standards.

Any  forum  members  track this company ?

[opmi]

Was $1 before. Lam also did right issue recently at little discount to mkt price.

Third Ave old shareholder letters wrote about it quite often.

[soros]

The figures I have for ;

Third Avenue Management show they are quitting :

19/5/2015 - 92 Mil shares ( 4.89%)
21/7/2015 - 166 Mil shares ( 8.7 %)
10/12/2015 - 113 Mil shares ( 6%)

For Peter Lam = 801 Mil shares ( 42%)- no change

For Yu Cheuk Yi & Yu Siu Yuk shows they are building up their holding :

15/10/2015 - 311 Mil shares ( 16%)
20/11/2015 - 343 Mil shares ( 18%)
20/ 4/2016 - 420 Mil shares (22%)
21/7 /2016 - 450 Mil shares ( 24%)

The recent rights issue was for Lai Sun Development ( 00488.HK ).

[grubb]

The shares are listed on the HK stock exchange closed today at $1.73 and appears to be heading north.

The NAV = $7.29 /share  which means the shares are substantially undervalued.  The past dividend record is mean to  scrooge standards.

Any  forum  members  track this company ?

I think the dividend record is bad because they barely have any realized profits in retained earnings. Most of retained earnings is made up by unrealized investment property revaluation gains. Under HKEX rules, they cannot pay out dividends from unrealized gains.

[fundamentalman]

I did track this company, PBV is low. But I prefer similar companies at lower gearing, like Shun Tak (vested), WingTai (vested), and SoundWill.

Lai sun is cheaper, but the data from google finance shows debt/equity ratio about 30%. Shun Tak is in net cash. Wingtai and soundwill has lower gearing.

But Lai sun is cheaper in terms of pbv. Another companies that has similar valuation, i think, is asia standard Int and Asia Orient.

lower pbv, but higher gearing.
higher pbv, but lower gearing.

So each to his/her own ... good luck to all who are vested in this company.

It seems that companies with larger market cap, like Kerry Properties (PBV 0.4x), Hanglung Group (pbv 0.5x), New world (Pbv 0.5x) are also trading at relatively big discount to bv. Dunno why, maybe market discounting steep property price decline in hk/china.

[opmi]

According to Third Ave, when u buy deep value, the assets must be growing (doesnt matter if it is high or low %) while you wait.

Soundwill boss been buying back shares recently....

Lai Sun Peter Lam's former GF is Joey Wang...who dumped singer Qi Qin for the tycoon, who subsequently also dumped her...

[specuvestor]

3rd avenue is in trouble... had they sold out Lai Sun?

So Joey Wang linked to what company for punt?

[soros]

The dividend record for Lai Sun from 2000 to 2013 is Nil paid over 13 years.

For years 2014 and 2015 , a dividend at 1.1 cents per share was paid.

But Yu Cheuk Yi's Holding has risen from 311 Mil shares to 450 Mil shares during the last year but what is the reason for this ?

......because collecting a dividend of 1.1 cents /share is too small to justify such a big purchase of shares.

[opmi]

Yu Cheuk Yi

http://hk.apple.nextmedia.com/financeest...6/18925168

[soros]

Yes, I found a more recent newspaper report that Mr Yu Cheuk Yi is founder of Billion Real Estate , Kowloon Bay, Hong Kong but company not listed on HKSE :

http://www.thestandard.com.hk/section-ne...?id=169446

But I still would like to know if anyone has any information behind Mr Yu increasing holding to 450 Million Shares in Lai Sun ( 00191.HK ) .