Homepage
PR Newswire
The good:
- Disposal of assets in FY 2016. Reaped gains of $30.087m from financial assets and $19.373m from non-core investment properties. The non-core investment properties are a HDB shophouse at Tampines West, 2 retail units at Midpoint Orchard and Yishun 10.
- Hotel operation in Bintan has commenced from Feb 2018. Second hotel in Maldives supposedly will commence from 3Q2018. New hotel in Douz, Tunisia will commence from 1Q2019.
- Crown jewel Liat Tower is conservatively valued. On the balance sheet, the investment properties (including shopping centre in Tunisia and 2 office buildings in Perth) are carried at $506m. In my view, Liat Tower alone is probably worth more than $500m. If the rejuvenation of west Orchard Road does happen, Liat Tower will be a clear beneficiary. Will Wheelock, Hong Fok, Hotel Properties, Shaw or Far East Group want to buy Liat Tower to expand their footprint?
- Second crown jewel Sheraton Towers is listed under PPE and the freehold land is held at cost of $143.5m under its Richvein subsidiary. The hotel contributes a chunk of the revenues/profits of their hotels business line. But what if the management decides to slaughter the proverbial golden goose, so to speak? They can apply for a change of use from hotel to residential, then strata-divide and sell out residential apartments. The residential development right beside, Reignwood Hamilton Scotts, has asking prices in excess of $3,000psf.
- Colex operates in an oligopoly in the public waste collection. The other 3 players are Sembcorp, Veolia and 800 Super. The country generates more and more waste every year. Unless the company screws up big time, I dont see why NEA will want to upset the apple cart. This steady business throws out $8-10m of profits annually.
The not-so-good:
- The balance sheet is deteriorating. Between FY 2013 and FY 2017, short term borrowings spiked from $38m to 81m, while long-term borrowings spiked from $83m to $133m. Cash and cash equivalents dipped to $28.6m. Current liabilities is also consistently exceeding current assets, by an increasing margin.
- They made a substantial investment in Bintan. Why? If they want to make an investment in Indonesia, why not Bali? I personally think that Bali is way more dynamic as a tourist destination, compared to Bintan.
- They are making a substantial investment into Tunisia, which is a country located at the northern tip of the African continent. Tunisia underwent a civil war/revolution in 2011, saw 3 terrorist attacks in 2015 and civil unrest in 2018. There is a high level of youth unemployment.
- Investment in Cordlife soured. How did this happen and how robust is their investment process?
- Notwithstanding the fact that he's been buying back shares, the majority shareholder maintains control and pays out a low dividend (<2%) every year.
I remained undecided about Bonvest. Any inputs from the more experienced Value Buddies here?
- Disposal of assets in FY 2016. Reaped gains of $30.087m from financial assets and $19.373m from non-core investment properties. The non-core investment properties are a HDB shophouse at Tampines West, 2 retail units at Midpoint Orchard and Yishun 10.
- Hotel operation in Bintan has commenced from Feb 2018. Second hotel in Maldives supposedly will commence from 3Q2018. New hotel in Douz, Tunisia will commence from 1Q2019.
- Crown jewel Liat Tower is conservatively valued. On the balance sheet, the investment properties (including shopping centre in Tunisia and 2 office buildings in Perth) are carried at $506m. In my view, Liat Tower alone is probably worth more than $500m. If the rejuvenation of west Orchard Road does happen, Liat Tower will be a clear beneficiary. Will Wheelock, Hong Fok, Hotel Properties, Shaw or Far East Group want to buy Liat Tower to expand their footprint?
- Second crown jewel Sheraton Towers is listed under PPE and the freehold land is held at cost of $143.5m under its Richvein subsidiary. The hotel contributes a chunk of the revenues/profits of their hotels business line. But what if the management decides to slaughter the proverbial golden goose, so to speak? They can apply for a change of use from hotel to residential, then strata-divide and sell out residential apartments. The residential development right beside, Reignwood Hamilton Scotts, has asking prices in excess of $3,000psf.
- Colex operates in an oligopoly in the public waste collection. The other 3 players are Sembcorp, Veolia and 800 Super. The country generates more and more waste every year. Unless the company screws up big time, I dont see why NEA will want to upset the apple cart. This steady business throws out $8-10m of profits annually.
The not-so-good:
- The balance sheet is deteriorating. Between FY 2013 and FY 2017, short term borrowings spiked from $38m to 81m, while long-term borrowings spiked from $83m to $133m. Cash and cash equivalents dipped to $28.6m. Current liabilities is also consistently exceeding current assets, by an increasing margin.
- They made a substantial investment in Bintan. Why? If they want to make an investment in Indonesia, why not Bali? I personally think that Bali is way more dynamic as a tourist destination, compared to Bintan.
- They are making a substantial investment into Tunisia, which is a country located at the northern tip of the African continent. Tunisia underwent a civil war/revolution in 2011, saw 3 terrorist attacks in 2015 and civil unrest in 2018. There is a high level of youth unemployment.
- Investment in Cordlife soured. How did this happen and how robust is their investment process?
- Notwithstanding the fact that he's been buying back shares, the majority shareholder maintains control and pays out a low dividend (<2%) every year.
I remained undecided about Bonvest. Any inputs from the more experienced Value Buddies here?