19-01-2012, 02:54 PM
PROPOSED DISPOSAL OF INTEREST IN YUYAO HIGHWAY
http://info.sgx.com/webcoranncatth.nsf/V...9003AA4CE/$file/Disposal_of_Yuyao_Highway.pdf?openelement [SGX Announcement]
CM Pacific (China Merchants Holdings Pacific) has agreed to divest its stake in the toll road (13 years of concession left) to the Government for RMB 450 million which is in excess of the asset book value of RMB 231.4 million. The toll road generated PBT of HK$21.78 million in FY 2010 and HK$17.95 million in 9M 2011. The proceeds will be used to repay a portion of the debt at Group level - namely the recent HK$1.4 billion amortizing loan facility from DBS and ING used to finance the RMB 2.3 billion acquisition of 51% stake in Yongtaiwen Expressway in 3Q 2011.
I have been vested in this Company for the past few months as I like infrastructure business due to their steady cash-flow and dividends. I previously alluded to this Company in the MIIF thread as a possible comparable. Based on the current trading price of $0.670, the Company trades at a market capitalization of S$481 million and dividend yield of 7.46% (assuming 2.5 cent semi annual dividend). The Company has a 50% payout policy and has adhered to it since listing in 2005. The gearing is a lot lower than most of the listed infrastructure players (with the exception of telcos). However, it is very small in terms of asset size so I suspect they might have to beef up their equity if they decide to acquire more toll roads or participate in development projects in the future.
Like most infrastructure related and China-based businesses, there are numerous risks involved so do your own research !
(Vested)
http://info.sgx.com/webcoranncatth.nsf/V...9003AA4CE/$file/Disposal_of_Yuyao_Highway.pdf?openelement [SGX Announcement]
CM Pacific (China Merchants Holdings Pacific) has agreed to divest its stake in the toll road (13 years of concession left) to the Government for RMB 450 million which is in excess of the asset book value of RMB 231.4 million. The toll road generated PBT of HK$21.78 million in FY 2010 and HK$17.95 million in 9M 2011. The proceeds will be used to repay a portion of the debt at Group level - namely the recent HK$1.4 billion amortizing loan facility from DBS and ING used to finance the RMB 2.3 billion acquisition of 51% stake in Yongtaiwen Expressway in 3Q 2011.
I have been vested in this Company for the past few months as I like infrastructure business due to their steady cash-flow and dividends. I previously alluded to this Company in the MIIF thread as a possible comparable. Based on the current trading price of $0.670, the Company trades at a market capitalization of S$481 million and dividend yield of 7.46% (assuming 2.5 cent semi annual dividend). The Company has a 50% payout policy and has adhered to it since listing in 2005. The gearing is a lot lower than most of the listed infrastructure players (with the exception of telcos). However, it is very small in terms of asset size so I suspect they might have to beef up their equity if they decide to acquire more toll roads or participate in development projects in the future.
Like most infrastructure related and China-based businesses, there are numerous risks involved so do your own research !
(Vested)