For unknown reason(s), the share price of Casa's 27.39%-owned listed (on Bursa Malaysia) associate Fiamma Holdings Bhd shot up to as high as MYR1.45 today and closed up MYR0.08 (or 6.35%) at MYR1.34.....
http://finance.yahoo.com/echarts?s=6939....off;source=;
What this simply means is that Casa's interests of 32.301m shares and 14.356m warrants (convertible into new Fiamma shares at MYR1/warrant; expiring 26Nov2018) in Fiamma Holdings are now worth more.
Fiamma Holdings has recently (on 30Jan12) released its FY11 (ended 30Sep11) AR.....
http://announcements.bursamalaysia.com/E...5002e6669/$FILE/FIAMMA-AnnualReport2011%20(1.9MB).pdf
, and I guess this and the positive results drove up its share price yesterday.
Against its 30Sep11 NAV/share of MYR1.96, Fiamma Holdings' last done share price of MYR1.34 appears grossly under-priced, especially the counter is now trading cum a MYR0.07/share Final dividend. There appears room for further rise in the share price.
Based on Fiamma Holdings' last done share price of MYR1.34, and a derived fair price for the warrant at MYR0.34 (i.e. at par, without any premium), Casa's 27.39% stake in Fiamma Holdings now has a total market value of MYR48.16m, or $19.82m. This is equivalent to $0.095 per Casa share, based on Casa's 209.826m outstanding issued shares.
If we use Fiamma Holdings' 30Sep11 NAV of MYR231.583m as a valuation basis, Casa's 27.39% stake has a NAV-based valuation of MYR63.43m, or $26.1m. This is equivalent to $0.124 per Casa share.
Bearing in mind the above, Mr Market, and based on Casa's last done share price of $0.132, does not appear to also provide enough justice in pricing Casa's profitable operating businesses.
Casa is selling its 50% stake in PRC-based j-v company Panan Teco Electrical Appliances Co Ltd ("Panan Teco") to Arda (Zhejiang) Electric Co., Ltd (which is 60% owned by Casa's ED Mr Hu Zhong Huai, who is also a substantial shareholder of Casa, with a 8.28% direct interest in Casa, and a 50.37% interest in Azzui Holdings P/L, which holds a controlling 51% interest in Casa - i.e. Hu's total beneficial interest in Casa is 33.97%) for Rmb 14.0m (approx. $2.7m) in cash, and will bring about a gain on disposal of approx. $0.5m to Casa.....
http://info.sgx.com/webcoranncatth.nsf/V...A0026E489/$file/Casa.proposed.sale.of.equity.in.Panan.Teco.pdf?openelement
The approx. $2.7m sale proceeds and approx. $0.5m gainon disposal will enhance Casa's already strong B/S and FY12 (ending 30Sep12)'s EPS by $0.0024.
Upon completion of the proposed transaction, Hu will be redesignated as a non-executive Director of Casa. I just wonder whether Hu may want to sell his stake in Casa after that?
I was going through the just released full-year FY11 (ended 31Dec11) results announcement of newly listed (on 22Jul11) Kitchen Culture.....
http://info.sgx.com/webcoranncatth.nsf/V...D00389E79/$file/KCH-FY2011ResultsAnnouncement.pdf?openelement
and I was amazed that based on the company's latest 100.0m outstanding issued shares and the last done (on 16Feb) share price of $0.335, Kitchen Culture now has a market cap. of $33.5m, which equates to a historical PER of 14.8x, if we simply add back the $1,011k IPO expenses to arrive at a revised higher NP of $2.207m for FY11.
In Casa's case, based on the latest 209.826m outstanding issued shares, and today's (23Feb) closing share price of $0.112, market cap. now stands at $23.5m. But when compared with Kitchen Culture, Casa has so much more assets (including a large net cash reserve and other reserve assets like an industrial property and a strategic interest in Fiamma Holdings Bhd), is earning much higher profits, and pays out a much higher yearly dividend.....
http://info.sgx.com/listprosp.nsf/07aed3...200292eae/$FILE/CASA%20AR%202011%20SGX.pdf
Obviously, Mr Market is not being fair, or just not thinking and acting rationally!
Kitchen Culture just announced their full year report with full year net profit down approx 70%. And their share price is down approx 28% mid-day to 0.24.
http://info.sgx.com/webcoranncatth.nsf/V...D00389E79/$file/KCH-FY2011ResultsAnnouncement.pdf?openelement
Will be interesting to see how is Casa 1st Qtr result.
I do not think Casa report quarterly result. Need to wait till June 2012.
I do not think Casa report quarterly result. Need to wait till June 2012.
Just checked my bank account and noted a very nice credit from Casa's $0.01/share Final dividend for FY11 (ended 30Sep11). Feeling good!
Based on Casa's 30Sep11 B/S.....
http://info.sgx.com/webcoranncatth.nsf/V...7002BFE7A/$file/Casa.Full.Year.Results.30.09.11.pdf?openelement
the group should still have approx. $6.5m in net cash balance after accounting for the latest dividend. The balance could well be a lot higher since Casa would have received an approx. $1.0m dividend from Fiamma and also collected a big portion of the $8.278m trade and other receivables balance as at 30Sep11.
I wonder if Casa would pay out an Interim dividend when the company reports its 1H (ending 31Mar12) interim result in May?