China Merchants Holdings Pacific

(20-12-2013, 10:01 PM)Nick Wrote: It is likely the local partner is the Government - consider how it never had a share of the profit for nearly 2 decades. I think revenue-wise, it will be neutral. Definitely accretive to our earnings till 4Q 2017 and then decline in contributions post 2021 with only Eastgate contribution. So overall, it is likely to be neutral. What is more 'scary' is how laws can be changed. We are fortunate the company has SOE lineage which enables some favourable 'compensation'.

(Vested)

Haaaa, didn't thought of local partner is the government. That make sense then.
Hope they can make full use of the 3 year "extension" to build up more cash.

(21-12-2013, 12:19 AM)Jack31 Wrote:

(20-12-2013, 10:01 PM)Nick Wrote: It is likely the local partner is the Government - consider how it never had a share of the profit for nearly 2 decades. I think revenue-wise, it will be neutral. Definitely accretive to our earnings till 4Q 2017 and then decline in contributions post 2021 with only Eastgate contribution. So overall, it is likely to be neutral. What is more 'scary' is how laws can be changed. We are fortunate the company has SOE lineage which enables some favourable 'compensation'.

(Vested)

Haaaa, didn't thought of local partner is the government. That make sense then.
Hope they can make full use of the 3 year "extension" to build up more cash.

Just speculating here about its identity. In MIIF's Hua Nan Expressway (it owns 81% share), the JV partner holding on to 10% stake is the local government. Not too sure about our 2 JV roads.

UOB has released a short report on the toll-road sector based on the December 2013 traffic figures and upcoming toll-free holiday period - http://research.uobkayhian.com/content_d...40a0e08d76 [Report]

(Vested)

http://infopub.sgx.com/FileOpen/Guihuang...eID=272039

Looks like a short term negative announcement especially with this expressway contributing HK$120 million profit p.a. Not too certain how this will affect the profitability of the JV and how much will the new expressway contribute. The compensation payment should tide it over though. Fortunately, dividend payout ratio isn't large so I doubt it will affect the 5.5 cents guidance. However, the changes in operating rules highlight the risk of government policies affecting toll operator revenues.

(Vested)

Big jump in final dividend.
Im surprise myself that Im not very happy, -_-" (crazy shareholder perhaps)
just Wondering if they are over stretching the payout.
Somehow I was hoping they will accumulate more cash for paring down debt faster or making acquisition.

why did you think they are overstretching?

(27-02-2014, 07:06 PM)Drizzt Wrote: why did you think they are overstretching?

Hi kyeith, I havent goes thru the details yet, just briefly scan thru the report.
On 1st look eps is lesser than last year but are paying 1.5c more than last year.

I would not be surprise with higher dividend as to attract higher attention from the investor, they would need a capital boast but it's parent is not willing to offer at below the fair value iirc.

(27-02-2014, 08:11 PM)valuebuddies Wrote: I would not be surprise with higher dividend as to attract higher attention from the investor, they would need a capital boast but it's parent is not willing to offer at below the fair value iirc.

probably said it best

(27-02-2014, 08:01 PM)Jack31 Wrote:

(27-02-2014, 07:06 PM)Drizzt Wrote: why did you think they are overstretching?

Hi kyeith, I havent goes thru the details yet, just briefly scan thru the report.
On 1st look eps is lesser than last year but are paying 1.5c more than last year.

earnings is less you are right. or the recurring one. but remember last year there was some one off item. at 712 outstanding shares this amount to 309 mil, which is a farcry from the 550 mil attributable to shareholders sans the 48 from discontinued operations.