26-04-2013, 11:28 PM
Thank you for your kind words Jack !
I have been an investor for a couple of years now. Things has changed rapidly - once I was worried about Guihuang 100% profit sharing expiry in 2014 but after the YTW M&A, this has become an after thought. As a result, it is apparent that the Group fortunes (and ours) could change drastically over the coming years based on the Management performance ie poor execution could easily see a reversal in profits and dividends. This is why I try to continually keep abreast of their corporate developments. The AGM was an interesting session and a lot of valid points was raised by minority shareholders. I thought the electronic poll voting was pretty cool ! Drizzt kindly wrote a great summary of the AGM and FY results here - http://www.investmentmoats.com/money-man...q1-report/
On another note, DBSV released a report today -
Earnings growth of 14% in line
• 1QFY13 net profit of HK$128.4m (+14% y-o-y) is in
line with expectations; makes up 27% of full year
core profit
• Revenue growth of 27% y-o-y to HK$436m driven
largely by consolidation of Ningbo-Beilun Port
Expressway
• Positive on CMHP’s earnings growth prospects,
which are driven by both organic traffic growth in
China as well as acquisitions
• Maintain BUY and S$1.12 TP
Highlights
CMHP recorded 1Q13 numbers that were largely in line with
our expectations. Bottom line of HK$128.4m (+14% y-o-y),
makes up 27% of our full year forecast. Revenue rose by
27% y-o-y (excluding property development), which was
largely driven by the consolidation of Ningbo-Beilun Port
Expressway, acquired in Nov 12, while gross profit rose 17%
to HK$250.4m. With higher finance costs (+44% to
HK$51m), due to higher borrowings to fund the acquisition
of Ningbo-Beilun Port, and higher administrative costs of
HK$24.4m (+70%; includes some one-off acquisition
expenses), offset partially by higher contribution from JV toll
roads Guiliu and Guihuang Highways, PBT rose 10% y-o-y to
HK$252.m
Our View
We continue to like CMHP's prospects, which will be driven
by both organic growth of traffic on its toll roads, as well as
new acquisitions such as Ningbo-Beilun Port Expressway. The
completion of the Jiurui Expressway acquisition will also boost
the Group's longer term prospects, and will transform the
CMHP into a pure toll road player.
Recommendation
The stock is currently trading at fully diluted 10.7x FY13F PE,
declining to 9.6x in FY14F, and offers a prospective yield of
6.2%, which is attractive. It is also trading cum dividend of
2.75 Scts. Maintain BUY and S$1.12 TP.
(Vested)
I have been an investor for a couple of years now. Things has changed rapidly - once I was worried about Guihuang 100% profit sharing expiry in 2014 but after the YTW M&A, this has become an after thought. As a result, it is apparent that the Group fortunes (and ours) could change drastically over the coming years based on the Management performance ie poor execution could easily see a reversal in profits and dividends. This is why I try to continually keep abreast of their corporate developments. The AGM was an interesting session and a lot of valid points was raised by minority shareholders. I thought the electronic poll voting was pretty cool ! Drizzt kindly wrote a great summary of the AGM and FY results here - http://www.investmentmoats.com/money-man...q1-report/
On another note, DBSV released a report today -
Earnings growth of 14% in line
• 1QFY13 net profit of HK$128.4m (+14% y-o-y) is in
line with expectations; makes up 27% of full year
core profit
• Revenue growth of 27% y-o-y to HK$436m driven
largely by consolidation of Ningbo-Beilun Port
Expressway
• Positive on CMHP’s earnings growth prospects,
which are driven by both organic traffic growth in
China as well as acquisitions
• Maintain BUY and S$1.12 TP
Highlights
CMHP recorded 1Q13 numbers that were largely in line with
our expectations. Bottom line of HK$128.4m (+14% y-o-y),
makes up 27% of our full year forecast. Revenue rose by
27% y-o-y (excluding property development), which was
largely driven by the consolidation of Ningbo-Beilun Port
Expressway, acquired in Nov 12, while gross profit rose 17%
to HK$250.4m. With higher finance costs (+44% to
HK$51m), due to higher borrowings to fund the acquisition
of Ningbo-Beilun Port, and higher administrative costs of
HK$24.4m (+70%; includes some one-off acquisition
expenses), offset partially by higher contribution from JV toll
roads Guiliu and Guihuang Highways, PBT rose 10% y-o-y to
HK$252.m
Our View
We continue to like CMHP's prospects, which will be driven
by both organic growth of traffic on its toll roads, as well as
new acquisitions such as Ningbo-Beilun Port Expressway. The
completion of the Jiurui Expressway acquisition will also boost
the Group's longer term prospects, and will transform the
CMHP into a pure toll road player.
Recommendation
The stock is currently trading at fully diluted 10.7x FY13F PE,
declining to 9.6x in FY14F, and offers a prospective yield of
6.2%, which is attractive. It is also trading cum dividend of
2.75 Scts. Maintain BUY and S$1.12 TP.
(Vested)
