Early this morning, MIIF released two very important announcements - their 3Q results and Requisition for SGM by shareholders.
3Q 2012 Key Highlights
- Net income of S$60.2 million up S$10.3 million on prior year
- Net Asset Value of S$813.2 million or S$0.70 per share, down S$0.01 per share on previous quarter driven by adverse foreign exchange movements
- Robust operational performance across the portfolio, however the adverse impact of the toll revisions at Hua Nan Expressway will continue
- Strategic review undertaken by the Board and CIMB Bank Berhad appointed as its independent financial adviser
- Suspension of share buy-back programme due to the strategic review process
http://info.sgx.com/webcoranncatth.nsf/V...E004F0506/$file/MIIF3Q2012Preso.pdf?openelement [PPT Slides]
http://info.sgx.com/webcoranncatth.nsf/V...E004F0506/$file/MIIF3Q2012Results.pdf?openelement [Press Release]
http://info.sgx.com/webcoranncatth.nsf/V...E004F0506/$file/MIIFSGXReport3Q2012.pdf?openelement [SGX Report]
MIIF assets continue to perform well operationally. TBC reported another year of revenue and EBITDA growth with 9M EBITDA increasing by 4.6% to S$149 million. This was driven primarily by substantial growth in the digital segment which recorded double digit growth. CXP reported stable EBITDA of RMB 110 million though the margin was compressed slightly. All eyes was on HNE after the toll standardization - it reported decline in revenue of 15% and EBITDA of 17% in 3Q 2012 which was better than the guided 20 - 25% decline due to significant growth in traffic volume. Miaoli Wind will generate incremental revenue from the sale of carbon credit but face loan maturity issue in Dec 2012.
This quarter is traditionally the cash quarter and CXP and HNE pays dividends only in this period. CXP increased its distribution from $5.3 mil to $6.9 mil, HNE reduced its distribution from $22.5 mil to $17.4 mil and HNE decreased its 3Q distribution from $19.0 mil to $18.3 mil. The total 9M cash distribution and interest income increased from $57.5 mil to $67.0 million. The net adjusted distribution stands at $60 mil or approx 5.2 cents per share. MIIF has guided 2H 12 DPU of 2.75 cents. TBC generated close to $1 mil cash distribution in 4Q 2011 - it is not certain whether this will be repeated in 4Q 2012.
Personally, I think this is a decent set of results with HNE surprising on the upside. Distribution income will be lower next year due to the decline in HNE income. The main catalyst lies in the Strategic Review and their plans for the $59 million cash hoard - M&A or special dividend ??? Share buy back has been suspended till the review is complete.
REQUISITION FOR A SPECIAL GENERAL MEETING
http://info.sgx.com/webcoranncatth.nsf/V...E004F38D7/$file/MIIFSGMRequisition.pdf?openelement [SGX Announcement]
On another note, a group of shareholders holding 10.27% of the shares has requisitioned a SGM to appoint 3 of their nominees as Directors of MIIF. No identity of the shareholders was given except that their shares are held under Raffles Nominee. I speculate that it could be the value funds who became substantial shareholders a year ago. Interestingly, MIIF has only 1 MIMAL director (the CEO) and 4 IDs. If the group of shareholders succeed in putting 3 of their directors inside - wouldn't they have control over MIIF ???
Please feel free to point out any mistakes / misconceptions on my part.
(Not Vested)