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30-03-2014, 07:02 AM
You ask what is the NAV represented by ? cash or hotels or goodwill ?
The Hong Kong accounting standards requires the annual profits to include changes to the fair value to the assets. The company seems to have 23 % gearing so I would expect most of the asset value in NAV figure to comprise cash, hotels and borrowings .
The share price of Rosedale Hotel ( 01189.HK ) closed at $0.65 on friday ( 27 Mar ) and this gives a market capitalisation of $427 Mil . But figures from balance sheet at 31Dec 2013 gives cash on hand at $733 Mil and total debt at $466 Mil.
The company results for year to 2010/12 recorded profit of $468 Mil profit and 10cts div paid. The results for 2009/12, 2011/12 and 2012/12 reported losses and no div. The result last year was a profit at $382 Mil but no div paid.
What conclusions can you draw from above situation ?
The Hong Kong accounting standards requires the annual profits to include changes to the fair value to the assets. The company seems to have 23 % gearing so I would expect most of the asset value in NAV figure to comprise cash, hotels and borrowings .
The share price of Rosedale Hotel ( 01189.HK ) closed at $0.65 on friday ( 27 Mar ) and this gives a market capitalisation of $427 Mil . But figures from balance sheet at 31Dec 2013 gives cash on hand at $733 Mil and total debt at $466 Mil.
The company results for year to 2010/12 recorded profit of $468 Mil profit and 10cts div paid. The results for 2009/12, 2011/12 and 2012/12 reported losses and no div. The result last year was a profit at $382 Mil but no div paid.
What conclusions can you draw from above situation ?