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17-03-2015, 11:11 PM
(This post was last modified: 17-03-2015, 11:13 PM by greengiraffe.)
Mother of the The Dragon - CM Hua Jian Highway Investment Co
I m repeatedly conducting my forensic studies on any linkages to CMP.
I m recooking old ingredients here. Today I am revisiting the Parentage, China Merchant Hua Jian Highway Investment Co Ltd
While CMP has made positive strides over the years, it appears that CMP remains work in progress notwithstanding the Mother's "focus" on the only investment company in which the Mother have majority control.
Interestingly, despite CMP being majority owned and is within the same parentage, being listed on SGX and perhaps smaller in mkt cap resulted in CMP offering the highest dividend yield to HKSE listed peers (pls refer to earlier analysis and links to aastock universe).
With Mother driving CMP, hopefully CMP valuations will close in on HKSE listed peers as the baby dragon progressively build up its track record via acquisitions and organic growth on existing road portfolio.
http://www.hj.net.cn/en_index/
The ultimate parentage, China Merchant Group
http://www.hj.net.cn/en/second.aspx?nodeid=136
Company Profile of China Merchant Hua Jian Highway Investment Co Ltd
http://www.hj.net.cn/en/second.aspx?nodeid=137
Business Overview:
http://www.hj.net.cn/en/second.aspx?nodeid=133
Hua Jian's Investment Projects via their listed interests and the location of the roads in which the listed interests own is clearly reflected via the following link:
http://www.hj.net.cn/en/second.aspx?nodeid=134
Note that most of the listed interests are largely provincial based and so far CM Pac appears to be the only vehicle with interests in roads spread over different parts of China. Perhaps this is how Hua Jian intends to differentiate CM Pac from the rest of the other listed vehicles.
Hua Jian's interests in CM Pac on a fully diluted basis will be watered down to 60.6% assuming full conversion of outstanding convertible bonds due in 2017 at current prices.
Whilst, management in the previous public interview by The Edge in Nov 2013 stated that they could dilute their stake to 51%, there is really nothing preventing them from diluting to below that as seen in their much smaller holdings in other listed toll road companies both in China and HKSE.
Following the recent Jiurui acquisition, the question now will be the speed in which CM Pac will be acquiring bearing in mind that the parent has stated an optimal gearing ratio of 60% for CM Pac as she acquires.
In addition, CM Pac is likely to acquire only if she can assume controlling stake in the project as seen from the acquisitions over the years. Even though, Hua Jian owns a diverse portfolio of projects, CM Pac has yet to acquire less than majority stakes till now.
CM Pac is a "clean structure" - a company - it does not pay management fees like business trusts that typically owns infrastructure assets. Hence dividends are basically driven by cashflows generated by normal operations, ie no creative accounting.
Vested
Core Holdings
I m repeatedly conducting my forensic studies on any linkages to CMP.
I m recooking old ingredients here. Today I am revisiting the Parentage, China Merchant Hua Jian Highway Investment Co Ltd
While CMP has made positive strides over the years, it appears that CMP remains work in progress notwithstanding the Mother's "focus" on the only investment company in which the Mother have majority control.
Interestingly, despite CMP being majority owned and is within the same parentage, being listed on SGX and perhaps smaller in mkt cap resulted in CMP offering the highest dividend yield to HKSE listed peers (pls refer to earlier analysis and links to aastock universe).
With Mother driving CMP, hopefully CMP valuations will close in on HKSE listed peers as the baby dragon progressively build up its track record via acquisitions and organic growth on existing road portfolio.
http://www.hj.net.cn/en_index/
The ultimate parentage, China Merchant Group
http://www.hj.net.cn/en/second.aspx?nodeid=136
Company Profile of China Merchant Hua Jian Highway Investment Co Ltd
http://www.hj.net.cn/en/second.aspx?nodeid=137
Business Overview:
http://www.hj.net.cn/en/second.aspx?nodeid=133
Hua Jian's Investment Projects via their listed interests and the location of the roads in which the listed interests own is clearly reflected via the following link:
http://www.hj.net.cn/en/second.aspx?nodeid=134
Note that most of the listed interests are largely provincial based and so far CM Pac appears to be the only vehicle with interests in roads spread over different parts of China. Perhaps this is how Hua Jian intends to differentiate CM Pac from the rest of the other listed vehicles.
Hua Jian's interests in CM Pac on a fully diluted basis will be watered down to 60.6% assuming full conversion of outstanding convertible bonds due in 2017 at current prices.
Whilst, management in the previous public interview by The Edge in Nov 2013 stated that they could dilute their stake to 51%, there is really nothing preventing them from diluting to below that as seen in their much smaller holdings in other listed toll road companies both in China and HKSE.
Following the recent Jiurui acquisition, the question now will be the speed in which CM Pac will be acquiring bearing in mind that the parent has stated an optimal gearing ratio of 60% for CM Pac as she acquires.
In addition, CM Pac is likely to acquire only if she can assume controlling stake in the project as seen from the acquisitions over the years. Even though, Hua Jian owns a diverse portfolio of projects, CM Pac has yet to acquire less than majority stakes till now.
CM Pac is a "clean structure" - a company - it does not pay management fees like business trusts that typically owns infrastructure assets. Hence dividends are basically driven by cashflows generated by normal operations, ie no creative accounting.
Vested
Core Holdings