28-03-2023, 09:44 PM
Looking at CDG recently as its share price has fallen a lot.
The Group has a net cash position of S$653M as at Dec2022 which is significant relative to its market cap of S$2.5B. Deducting this net cash off market cap may yield a very reasonable PE ratio.
Question I have is - is this net cash really free for use (either distribution or for acquisitions)?
My doubts are:
(i) impression-wise, CDG is an asset-heaving company.
(ii) and it has a large current trade and other payables of S$832M.
So am rather surprise that it has a large cash and net cash balance.
Appreciate thoughts and insights.
The Group has a net cash position of S$653M as at Dec2022 which is significant relative to its market cap of S$2.5B. Deducting this net cash off market cap may yield a very reasonable PE ratio.
Question I have is - is this net cash really free for use (either distribution or for acquisitions)?
My doubts are:
(i) impression-wise, CDG is an asset-heaving company.
(ii) and it has a large current trade and other payables of S$832M.
So am rather surprise that it has a large cash and net cash balance.
Appreciate thoughts and insights.