16-10-2019, 08:40 AM
(10-10-2019, 04:33 PM)dreamybear Wrote:(10-10-2019, 03:10 PM)gemini Wrote: Its most recent reported book value is HK$16 per share, isn't it ...
May I know by book value, are you referring to NTA or NAV ?
imho, the quality of assets is more impt than the reported book value, e.g. - having a little short experience in running a bizess, those "property / used plant / equipment" hardly has any value in reality, worst case may even need to spend money to dispose or make whole to original state. So unless it's a freehold / prime / good location / property / land in a stable political environment(country with strong rule of law), i wld usually assign 0 value to property / plant / equipment(any recovery amt is a bonus). Speaking of which, land in HK and mainland China are leasehold. Some types of inventories may also become obsolete(may it be by design(fashion), perishable items, new SG cars sitting in the warehouse for a few years may depreciate quite a lot, etc) thereby not being worth as much when time goes by. Cash may also be slowly depleted if sales are very bad due to the prolonged unrest in HK. Other than that, CCS also has 496m of cash held on behalf of clients(means not its own) & 1b of receivables(can be subjected to impairments esp in a poor economic env) for its securities and futures bizness, making up part of its current assets.
Do note that I am not an accountant, just sharing my limited knowledge. As such, pls feel free to correct my understanding if necessary.
Does not make sense to attribute zero to property la. Going by your assumption/reasoning, all the property stocks would crash at least 50% overnight already.