The listing status of CMZ will be maintained.
"With regard to the above, the Company has been informed by the Offeror that it intends to maintain the listing status of the Company and is evaluating various options to restore the free float of the Company. The Company will update Shareholders of any material development in due course."
Reference:
http://infopub.sgx.com/FileOpen/CMZ_Anno...eID=260359
(30-10-2013, 08:56 AM)NTL Wrote: [ -> ]China Minzhong's this quarter profit drops 60%!
Revenue up, but gross margin drop. Cost increase across all areas, especially in Sales and Admin expenses.
Wonder how the new owner will think...
http://infopub.sgx.com/FileOpen/1Q2014Re...eID=261720
New Owner thinks about "No Face". Don't play with Billionaire.
Indofood won't care.
Anyway, the expense increase can be easily cut. Apart from the GPM drop, the bulk of profitability increase comes from higher A&P cost + legal fess (against Glaucus?). These are all likely to be one-off.
Actual decrease in profits is actually 20% and not 80% if not for one time expenses of advertising and legal fees. Decrease in earnings is in line with the higher labour and raw material cost across industry. you can see a similar decrease for Yamada Green.
Valuation at 0.84 is assuming the worst. Without taking into account the growth due to expansion in facilities and the new synergy brought about in indofood. The stock is easily worth $1.10.
Granted that there might be fraud risk, however in my opinion it is minimal due to the following reasons
1) Temasek and PT indofood has done their due dilligence on CMZ
2) Lin Guo Rong has shown positive signalling over the years
3) CMZ openly invites analyst to their plants.
4) dividend was given out
Apart from fundamental analysis, most of the current shareholders are those who held onto the stock believing that the it is worth more than PT indofood offer price. The recent sell down is probably due to low liquidity of the stock and this in turns causes panic amongst shareholders. Sentiments should picked up once a support is found which is around 0.82-0.85
Indofood just post a huge 78% drop in quarterly-profit due to the high interest expense incurred in buying CMZ... Interest expense jump 320% Don't say they don't care.. If they have to make a choice, CMZ wont be in their bao-bei list..
(30-10-2013, 09:42 AM)dzwm87 Wrote: [ -> ]Indofood won't care.
Anyway, the expense increase can be easily cut. Apart from the GPM drop, the bulk of profitability increase comes from higher A&P cost + legal fess (against Glaucus?). These are all likely to be one-off.
(22-11-2013, 02:46 PM)sentosaubin Wrote: [ -> ]Indofood just post a huge 78% drop in quarterly-profit due to the high interest expense incurred in buying CMZ... Interest expense jump 320% Don't say they don't care.. If they have to make a choice, CMZ wont be in their bao-bei list..
(30-10-2013, 09:42 AM)dzwm87 Wrote: [ -> ]Indofood won't care.
Anyway, the expense increase can be easily cut. Apart from the GPM drop, the bulk of profitability increase comes from higher A&P cost + legal fess (against Glaucus?). These are all likely to be one-off.
Why should indofood care? Their boss is not using his personal money to finance the purchase of this stock to begin with.
If they start losing money because of CMZ, of course they will care..
(22-11-2013, 03:34 PM)propertyinvestor Wrote: [ -> ] (22-11-2013, 02:46 PM)sentosaubin Wrote: [ -> ]Indofood just post a huge 78% drop in quarterly-profit due to the high interest expense incurred in buying CMZ... Interest expense jump 320% Don't say they don't care.. If they have to make a choice, CMZ wont be in their bao-bei list..
(30-10-2013, 09:42 AM)dzwm87 Wrote: [ -> ]Indofood won't care.
Anyway, the expense increase can be easily cut. Apart from the GPM drop, the bulk of profitability increase comes from higher A&P cost + legal fess (against Glaucus?). These are all likely to be one-off.
Why should indofood care? Their boss is not using his personal money to finance the purchase of this stock to begin with.
Interesting call for a half hour trading halt for market to "DIGEST the NEWS" today. Why would they need to do that? it seems after lifting of halt the stock has not much action anyways...