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23-09-2013, 11:53 AM
(This post was last modified: 23-09-2013, 11:56 AM by felixleong.)
I think sheng shiong should follow what challenger has been doing, since both in the retail industry but one is consumer the other is IT products
challenger when its ipo at 10 cents many cows years back it gave all employees shares, the lowest was 10 lots ( free of charge, so min is 1k value)
every since they ipo, they had always paid good dividends to shareholders (since their employees are also share holders), payout has been around half of the earnings or slightly less.
challenger's CEO Mr Loo's salary is about 1 million dollars
but the dividends he receives annually is about 3 million dollars, 3 times his salary
i would be attracted to sheng shiong if they pay themself less and pay out more dividends instead, this would be most fair and the market should react well and support it with a strong stock price too
when sheng shiong ipo it was around 8 times earnings only and was hovering at 10 times earning for sometime, but I guess now at 20 times its really very very expensive... maybe when QE fades away and the price comes down it may be a decent buy at 12 times earnings or less?
challenger when its ipo at 10 cents many cows years back it gave all employees shares, the lowest was 10 lots ( free of charge, so min is 1k value)
every since they ipo, they had always paid good dividends to shareholders (since their employees are also share holders), payout has been around half of the earnings or slightly less.
challenger's CEO Mr Loo's salary is about 1 million dollars
but the dividends he receives annually is about 3 million dollars, 3 times his salary
i would be attracted to sheng shiong if they pay themself less and pay out more dividends instead, this would be most fair and the market should react well and support it with a strong stock price too
(23-09-2013, 10:45 AM)NTL Wrote:(23-09-2013, 10:25 AM)camelking Wrote: Majority are rather family oriented....if you understand what it means.
Father, mother, spouse, brothers, sisters, children, inlaws, cousins... All must take care mah....
(23-09-2013, 10:36 AM)grubb Wrote: I believe too that mgmt remuneration is one way to gauge the mgmt, but just taking a snapshot of 1 year's pay is hardly fair at all. I usually look at past reports before making an opinion. The best is if there is a down cycle and mgmt cut their bonus in line with the drop in profit.
For small caps, I think it is normal for mgmt to take up to 10-20% of NP. Time will tell if and when they become as big as diary farm and still take the same amount of pay..
For alignment with shareholders (and employees), Sheng Siong does ->
1. 90% dividend payout since listing and committed to FY13 and FY14
2. 20% PBIT profit sharing with employees
3. Free lunch for employees for >20 years
4. >70% of mgmt pay is in variable bonus. Exact amount of pay is also disclosed in AR2012 which is an improvement over AR2011.
5. No ridiculous amt of options held by mgmt (in fact no options issued at all)
Looks pretty decent to me! Any thoughts?
It's decent, but can the PE be closer to 10?
when sheng shiong ipo it was around 8 times earnings only and was hovering at 10 times earning for sometime, but I guess now at 20 times its really very very expensive... maybe when QE fades away and the price comes down it may be a decent buy at 12 times earnings or less?