Sound Global announces its 9 months FR today
http://info.sgx.com/webcorannc.nsf/Annou...endocument
A quick summary of the FR
- Revenue increases by 16.4% while NP increases by 12.5% from 9 months FY2011. The achievement is on top of the 39.4% increase in Finance expense due to the high-yield bond issued
- Other income increases by 53.6% from 9 months FY2011. The increases is mainly contributed by deemed interest income from service concession receivables.
- D&S and R&D expenses increases by more than 100% from 9 months FY2011. The increases are mainly attributed to increases in tender fees and staff costs. This part needs further scrutinization. The expenses grows out-of-scale with the revenue growth.
- Total debt (CB+Bond+borrowings) is approx 2.6 billions RMB, while cash (bank and restricted bank balance) is also approx 2.6 billion RMB, net debt is nil
(vested)
Sound Global continue to redeem the CB. Total of RMB 15 millions worth of CB been repurchased at the price of 99% of the aggregate principal amount. CB remaining outstanding is RMB 607 millions.
http://info.sgx.com/webcoranncatth.nsf/V...D000CD4B9/$file/Ann_RepurchaseCancellationofCB-21Nov12.pdf?openelement
One special reminder announced by company. Does it hinting that Mr Wen will reduce his holding below 40%? Mr Wen is holding approx 55% at the moment...
"the Company wishes to announce that under the description of the Notes (the "Description"), following the occurrence of a Change of Control Triggering Event (as defined below), the Company will make an offer to purchase all outstanding Notes at a purchase price equal to 101% of the principal amount including any unpaid accrued interest.
Under the Description, a Change of Control Triggering Event means the occurrence of both a Change of Control Event and Ratings Decline. One of the Change of Control Event occurs when Mr. Wen Yibo, an Executive Director and Chairman of the Company ceases to control, directly or indirectly, at least 40 per cent. of the voting power of the voting stock of the Company."
http://info.sgx.com/webcoranncatth.nsf/V...B0012127D/$file/Ann_704_31-SeniorNotes_Eng.pdf?openelement
(vested)
I guess it leaves room for the Company to launch a private placement to finance future BOT / TOT projects ? Such an equity fund raising exercise will dilute the controlling shareholder stake.
(Not Vested)
(21-12-2012, 08:35 PM)Nick Wrote: [ -> ]I guess it leaves room for the Company to launch a private placement to finance future BOT / TOT projects ? Such an equity fund raising exercise will dilute the controlling shareholder stake.
(Not Vested)
I do guess the same.
The company funded the BOT projects by debts so far.
Other WWT companies e.g. SIIC Environment (former Asia Water Tech) funded by placements to its parent company shanghai industrial.
Will the company do better to fund BOT projects by placement instead of debt?
Mr. Market has revalue the company to $0.645. Is this due to the recent announcement which hinting a potential placement?
It seems that Mr Market prefers BOT projects fund by equity instead of debt.
(vested)
The share price today increases to $0.685, about 20% more than closed price at the end of 2012.
The market price exceeded the strike price of the CB, which was adjusted to $0.674 in Jun 2012.
(vested)
It seems Mr Market starting to re-rate Sound Global.
Up-to-date $0.705 with volume of more than 10 mil today. It is more than 20% appreciation over closed price at the end of 2012
(happily vested)