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http://www.valuebuddies.com/thread-6353-...#pid110981

CMP remains on CIMB's pick for their fundamental play on China stock fever - "Dare to Dream"

AGM Notice: http://infopub.sgx.com/FileOpen/Notice_o...eID=344112

NOTICE IS HEREBY GIVEN that the Annual General Meeting of China Merchants Holdings (Pacific) Limited (the “Company”) will be
held at Convention & Exhibition Centre, Room 326 Level 3, 1 Raffles Boulevard Suntec City, Singapore 039593 on 30 April 2015 at
4.00 p.m.

EGM and others: http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

Bonus Issue book closure date (same as final dividends): http://infopub.sgx.com/FileOpen/Announce...eID=344119

Annual Report 2014: http://infopub.sgx.com/FileOpen/CMHP_%20...eID=344113

Extracts and highlights of Annual Report 2014:

In the past few reports, we have reaffirmed our clear and
consistent growth strategy which is to create new growth
through identification of and participation in quality toll
road investments in China through acquisitions, strategic
alliances and joint ventures. The Company has achieved
significant success in delivering our growth strategy and
made good progress towards achieving our vision of
becoming a leading player in the toll road industry in China.

As we enter 2015, the Group is in a stronger position to
add real and sustainable value from our growing portfolio
of toll road assets. We remain committed to our strategy
of acquiring quality toll road assets and extending our
presence in the toll road sector in China.

Significant Developments
This has been another exciting year with significant
developments that have placed us on the foundations
for stability and growth.

The Company effected an organisational restructuring in
March 2014 which involves, certain senior managers of
China Merchants Huajian Highway Investment Co., Ltd
(“Huajian”) being appointed to the Board and forming part
of the senior management team of the Company. Huajian
is a wholly-owned subsidiary of China Merchants Group
Limited, the controlling shareholder of the Company.
The organisational restructuring forms part of the strategic
direction of the Company, Huajian and the China Merchants
Group to use the Company as the platform for the China
Merchants Group to expand its toll road business and
presence in China.

I believe the organisational restructuring
allows for more efficient deployment of human resources
to better align our focus on being a leading player in the
toll road industry in China by delivering consistent and
high returns to our stakeholders.

The Road Ahead

Over the last ten years, we have built a strong track record
of delivering sustainable value and strong shareholder
returns through successful execution of our strategies.
Going forward, we will continue to pursue growth from
within the portfolio as well as through external growth by
way of acquisitions that are conducive to our toll road
portfolio. Our expansion plans are backed by our strong
fundamentals and prudent asset management strategy.

We maintain a positive outlook on the toll road sector in
China and believe there are many opportunities available
for further growth. I am confident that we have the right
team, the right business model and the funding in place
to maintain our track record of success. As we enter
2015, we have an exceptionally strong platform for
future growth. I look forward with excitement to driving
the growth strategy and the business forward this year
and beyond.

http://infopub.sgx.com/FileOpen/Cancella...eID=344183

Fast and furious... 2nd conversion of CBs since the latest series of conversion resumes on 13 April.

CMP share price is expected to consolidate at a new level based on the resumption of CB conversions and the recently consolidation of gains of A & H shares.

With dividends and bonus shares book closure expected on 14 May, conversions of CBs may accelerate.

Vested
Core Holdings

http://infopub.sgx.com/FileOpen/Cancella...eID=344183

CHINA MERCHANTS HOLDINGS (PACIFIC) LIMITED
(Incorporated in the Republic of Singapore)
Company Registration No. 198101278D
ANNOUNCEMENT
CONVERTIBLE BONDS DUE 2017 -
CANCELLATION OF BONDS DUE TO CONVERSION
The board of directors (the “Board”) of China Merchants Holdings (Pacific) Limited (the “Company”) wishes to announce that HK$13,000,000 in aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015) (the “Convertible Bonds”) have been converted and cancelled pursuant to the exercise of conversion rights by the holder thereof (the “Conversion”). Accordingly, following such conversion and cancellation, the aggregate principal amount of the Convertible Bonds remaining outstanding as of 15 April 2015 is HK$691,000,000.
Arising from such conversion, 2,484,332 new ordinary shares in the capital of the Company (“Shares”) have been issued at the conversion price of S$0.826 and the total number of issued and paid-up Shares of the Company has increased to 1,069,908,274.
BY ORDER OF THE BOARD


Based on outstanding HK$704m worth of CBs, the potential shares to be converted at $0.826 is 132.052m.

(14-04-2015, 05:15 PM)sykn Wrote: [ -> ]Jack, I have struggled greatly with Buffet's and Mungers' view about taking concentrated positions, and decided instead to spread my portfolio across 20 - 30 stocks because as a small fry, I can never get access to the deep info on the companies I buy, unlike Buffet. CMPH is a great business, but I personally dare not hold such a huge position of it in my own portfolio, basically because I cannot cope with the downside risk, should the unforeseen happen. Another value investor with stronger guts than I may decide totally differently. (Value-edge.com has a couple of articles on this subject too)

(13-04-2015, 09:04 PM)Jack31 Wrote: [ -> ]

(13-04-2015, 04:14 PM)sykn Wrote: [ -> ]Hey Jack, everyday you delay selling this stock, you get richer; it's hitting $1.20 now. At this rate, you're going to be very rich if you delay long enough!

Lol, this stock take up about 40% of my portfolio, that's y I also quite worry if something unpredictable happen (touch wood), it will be a big big hit to me. On the other hand when I sell some, I end up buying back higher price.( still not experience enough like nick n GG). The last was I sold abit at 96 and end up buying again at 105 after they declare bonus. (To have a full lot after xb). I've been wanting to ask any buddies at what price would u cash out? For sure there will be an overprice price right? Current price is slightly less than 6% yield..

Not trying to talk up/down the stock. Just seeking opinion.

I also don't dare take concentrate position. It's just coincident that cmp build up in my portfoilio. It's was like I cash out on stock A, and couldn't find anything to do with the $, no good targeted stock, and I just sort of unknowing bought more n more. Will definitely try to reduce abit.

Hope to see all at the agm. I hope I can make it this year, miss last year.

(14-04-2015, 04:31 PM)valuebuddies Wrote: [ -> ]Being value investors, shouldn't we buy/own based on prospect rather than on current fundamentals? I always remind myself to focus on future value because today's high can be tomorrow's low.

Thank you for the reminder. Good advice. I need to remind Myself about this too!

(15-04-2015, 06:21 PM)Jack31 Wrote: [ -> ]

(14-04-2015, 05:15 PM)sykn Wrote: [ -> ]Jack, I have struggled greatly with Buffet's and Mungers' view about taking concentrated positions, and decided instead to spread my portfolio across 20 - 30 stocks because as a small fry, I can never get access to the deep info on the companies I buy, unlike Buffet. CMPH is a great business, but I personally dare not hold such a huge position of it in my own portfolio, basically because I cannot cope with the downside risk, should the unforeseen happen. Another value investor with stronger guts than I may decide totally differently. (Value-edge.com has a couple of articles on this subject too)

(13-04-2015, 09:04 PM)Jack31 Wrote: [ -> ]

(13-04-2015, 04:14 PM)sykn Wrote: [ -> ]Hey Jack, everyday you delay selling this stock, you get richer; it's hitting $1.20 now. At this rate, you're going to be very rich if you delay long enough!

Lol, this stock take up about 40% of my portfolio, that's y I also quite worry if something unpredictable happen (touch wood), it will be a big big hit to me. On the other hand when I sell some, I end up buying back higher price.( still not experience enough like nick n GG). The last was I sold abit at 96 and end up buying again at 105 after they declare bonus. (To have a full lot after xb). I've been wanting to ask any buddies at what price would u cash out? For sure there will be an overprice price right? Current price is slightly less than 6% yield..

Not trying to talk up/down the stock. Just seeking opinion.

I also don't dare take concentrate position. It's just coincident that cmp build up in my portfoilio. It's was like I cash out on stock A, and couldn't find anything to do with the $, no good targeted stock, and I just sort of unknowing bought more n more. Will definitely try to reduce abit.

Hope to see all at the agm. I hope I can make it this year, miss last year.

Hi Jack,

I am quite indifferent to take concentrated positions when it comes to investments.

In CMP's case, however, I shared your sentiments. I recently locked in gains in one of my decade long holdings and couldn't find any better investments that produce good dividend yield even when I up my stake around 1.05 recently (7% indicative assuming they maintain 7 cents post 1-for-20 bonus).

Given that roads are basic lifeline essential to any well regulated economies and that access to good toll roads are essentially closed to companies without necessary connections in China, there are only a handful of listed vehicles that investors can invest in via H shares in HKSE and CMP being the only one here on SGX.

CMP share prices will be affected by the conversion of CBs until they are exhausted. So far, CMP share price have steadily appreciated digesting the various bouts of conversions. To recap of the total HK$1.163bn, HK$472m or 40.58% have ready been converted but the share price has risen to a new high this week before the latest pause for breather. In conclusion, buyers of CMP have more than absorbed the perceived selling pressure since conversion of CBs started slightly over a year ago. I personally think that only deep pocket institutions have such financial might to sustain such a re-rating of a quality stock.

GG

Yup GG, you are right. many big buyers into this cmp dragon. Just compare the top 20 sh of cmp of fy13 and FY14. Big big difference. A million share can't even get you into top 20 now.

Annual Report 2014: http://infopub.sgx.com/FileOpen/CMHP_%20...eID=344113

I had a thorough read of CMP's latest annual report. Since this is a Sizable Core position of mine, I may be quite biased in my views.

This Luo Hui Lai's 2nd annual report. His first was 2013 immediately after he became Executive Chairman and CEO in Mar 2014 following a organisational restructuring that streamlined and optimised human resources between parent company Huajian and CMP in order to focus on the growth of CMP.

Under his leadership for substantial part of 2014, CMP finally sold non core NZ property business to related sister company and completed purchase of Jiurui though its a revived deal on improved terms.

CMP also declared a maiden bonus issue to enlarge share cap to reward shareholders for their loyalty and continuing support for the Company
as well as to reflect the growth and expansion of the Group’s business.

In addition, he also had the luxury of reflecting on 10 years of track record of sustainable values and strong shareholders returns through successful execution of strategies.

The tone of the annual report also appeared to be more affirmative and confident as noted by the highlights in the opening addresses to shareholders:

"In the past few reports, we have reaffirmed our clear and consistent growth strategy which is to create new growth through identification of and participation in quality toll road investments in China through acquisitions, strategic alliances and joint ventures. The Company has achieved significant success in delivering our growth strategy and made good progress towards achieving our vision of
becoming a leading player in the toll road industry in China.

As we enter 2015, the Group is in a stronger position to add real and sustainable value from our growing portfolio of toll road assets. We remain committed to our strategy of acquiring quality toll road assets and extending our presence in the toll road sector in China."

With the long established track record of China Merchant Group and the above Confident address to shareholders, I think Huajian would have rabbits lined up for CMP. Only when the rabbits surfaces in the near future, CMP's ongoing re-rating process will then be sustained.

Vested
GG

http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

ANNOUNCEMENT
CONVERTIBLE BONDS DUE 2017 -
CANCELLATION OF BONDS DUE TO CONVERSION
The board of directors (the “Board”) of China Merchants Holdings (Pacific) Limited (the “Company”) wishes to announce that HK$18,000,000 in aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015) (the “Convertible Bonds”) have been converted and cancelled pursuant to the exercise of conversion rights by the holder thereof (the “Conversion”). Accordingly, following such conversion and cancellation, the aggregate principal amount of the Convertible Bonds remaining outstanding as of 20 April 2015 is HK$673,000,000.
Arising from such conversion, 3,439,845 new ordinary shares in the capital of the Company (“Shares”) have been issued at the conversion price of S$0.826 and the total number of issued and paid-up Shares of the Company has increased to 1,073,598,119.
BY ORDER OF THE BOARD
Lim Lay Hoon
Company Secretary
Singapore, 20 April 2015

Based on outstanding HK$673m worth of CBs, the potential shares to be converted at $0.826 is 128.612m.