China Merchants Holdings Pacific

[LionFlyer]

Book value shouldn't be your sole determinant for margin of safety. There are plenty of stocks trading below book which many won't touch with a mile long stick.

Vested. Below book value.

[LionFlyer]

To add, financial ratios which assess the overall health (etc cash flow, gearing) and intangible elements such as company strategy, market plays a role in this so called "margin of safety".

This term "margin of safety" is also rather deceptive. Investments in any securities is inherently risky, hence by describing it using the term lulls the investor into a false sense of security, IMO.

[greengiraffe]

CMP started trading on a fairly resilient mode not withstanding record CB conversion reported on Friday.

Could CMP be a MSCI small cap inclusion in the upcoming May review for June inclusion due to rising mkt cap and free float...

Vested
GG

http://infopub.sgx.com/Apps?A=COW_CorpAn...cement.pdf

This is the 47th conversion of CBs and is the largest single conversion on record - HK$52m. Month-to-date conversion total HK$102m.

Will be interesting to see if there is going to be overhang in the immediate term resulting from this latest conversion and conversion ahead of XB XD on 12 May 15.

CHINA MERCHANTS HOLDINGS (PACIFIC) LIMITED
(Incorporated in the Republic of Singapore)
Company Registration No. 198101278D
ANNOUNCEMENT
CONVERTIBLE BONDS DUE 2017 -
CANCELLATION OF BONDS DUE TO CONVERSION
The board of directors (the “Board”) of China Merchants Holdings (Pacific) Limited (the “Company”) wishes to announce that HK$52,000,000 in aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015) (the “Convertible Bonds”) have been converted and cancelled pursuant to the exercise of conversion rights by the holder thereof (the “Conversion”). Accordingly, following such conversion and cancellation, the aggregate principal amount of the Convertible Bonds remaining outstanding as of 24 April 2015 is HK$617,000,000.
Arising from such conversion, 9,937,331 new ordinary shares in the capital of the Company (“Shares”) have been issued at the conversion price of S$0.826 and the total number of issued and paid-up Shares of the Company has increased to 1,084,299,860.
BY ORDER OF THE BOARD
Lim Lay Hoon
Company Secretary
Singapore, 24 April 2015

Based on outstanding HK$617m worth of CBs, the potential shares to be converted at $0.826 is 117.91m.

[greengiraffe]

CMP 1Q results are out:

http://infopub.sgx.com/Apps?A=COW_CorpAn...elease.pdf

Mainboard listed China Merchants Holdings (Pacific) Limited (“CMHP” or the “Group”) today announced a net profit attributable to shareholders of HK$142.3 million for the first quarter ended 31 March 2015. Excluding the one-off compensation received by the Guihuang Highway of RMB13 million (approximately HK$16.5 million) for the loss of toll revenue arising from the construction and use of a link road recorded in 1Q2014, this represents a 8% growth over the net profit achieved in 1Q2014.

http://infopub.sgx.com/Apps?A=COW_CorpAn...esults.pdf

The relatively flat 1Q 15 numbers masked the high cash generation capability of CMP which saw net debt declining from HK$3197.8 to HK$2733.9.

Operating cash flows before movements in working capital (that eliminates substantial amortisation of intangible assets (value of tolling rights) rose HK$356.6m to HK$401.5m, up 12.6%.

http://infopub.sgx.com/Apps?A=COW_CorpAn...l_Road.pdf

Profit contribution from the toll road operations declined 2% in the current period due primarily to lower profit contribution from Beilun Port Expressway and Gui Huang joint ventures, higher finance costs as a result of the increased bank borrowings and exchange losses, offset by higher profit contribution from Yongtaiwen Expressway and the consolidation of profit contribution from
Jiurui Expressway.

Performance of Yongtaiwen Expressway improved by 10% year-on-year. This was attributable to higher toll revenue achieved, improved gross profit margin and lower finance costs incurred following the repayment of certain long term loans.

Profit contribution from Beilun Port Expressway decreased 8% or HK$1.8 million mainly due to lower toll revenue registered, lower interest income, partially offset by lower operating costs.

Toll revenue generated by Gui Huang Highway amounted to RMB48.6 millio in 1Q2015, a decrease of 5.6% compared to RMB51.4 million recorded in 1Q2014. The negative impact from the relocation of toll stations effective early 2014 continued in the current reporting period. Toll revenue was further affected by the decrease in traffic flow of large goods vehicles following the use of a large local road transportation logistic center and the traffic diversion by a neighboring toll road after the completion of its major maintenance work. Profit contribution from Gui Huang Highway decreased 35.7% compared to the same period of last year, which
was much higher than the decrease in toll revenue of 5.6%, mainly due to one time compensation of RMB13 million received from a local government linked enterprise for the loss of toll revenue resulted from the construction and use of a link road that connects to Gui Huang Highway in the first quarter of 2014. Excluding the one time compensation, profit contribution from Gui Huang Highway would have increased 10% over the corresponding period of last year.

For the period under review, Gui Liu Expressway generated toll revenue of RMB160.6 million, an increase of 3% over the previous corresponding period. The toll revenue growth rate moderated due to the change in road network and the traffic diversion by high speed train services. Share of results of Gui Liu joint ventures remained stable at HK$43.7 million compared to HK$43.1 million
recorded one year ago.

Other businesses posted a lower loss of HK$5.3 million against a loss of HK$7.4 million in 1Q 2014 mainly due to lower administrative expenses and exchange losses, partially offset by lower interest income.

[greengiraffe]

http://infopub.sgx.com/FileOpen/Adjustme...eID=347695

CBs conversion price also adjusted downwards to $0.776 post xd xb.

[boochap]

A costal line will be built parallel to the existing yongtaiwen, will be opened in stages, unclear when though. Make sense for government to build a 2nd highway as yongtaiwen is becoming one of the busiest highway in zhejiang. worth checking with CMP management if they may be compensated or involved.

http://www.baike.com/wiki/甬台温高速公路复线


not vested. busybody.

[Nick]

A toll road industry report dated March 2015:

http://www.ccxap.com/Download/3322015040...202015.pdf

Outlook remains moderately stable.

(Vested)

[greengiraffe]

CMP, cimb downgraded to HOLD:

Awaiting catalysts
At 21% of our full-year forecast, China Merchants Holdings’ (CMH) 1Q15 core
earnings were slightly behind our expectations. Apart from the seasonal
weakness during Chinese New Year, the shortfall mainly came from lower
profit contribution from Guihuang Highway due to changes in the road
network. As a result, we lower FY15-17 EPS estimates by 2.2-3.5% to reflect
the lower earnings contribution from Guihuang. While the cuts in EPS had
little impact on our target price of S$1.16 (based on a CY15 residual income
valuation), CMH is downgraded from Add to Hold for being fully valued. We
are awaiting valuation accretive acquisitions to potentially re-rate the stock.
1QFY15 financial highlights
CMH’s reported net profit fell by 4% to HK$142m in 1Q15 (1Q14: HK$148m)
due to the absence of a one-off compensation of HK$16.5m received by the
Guihuang Highway for the loss of toll revenue arising from construction and
use of a link road recorded in 1Q14. Excluding all non-recurring items, core net
profit grew by 4.6% to HK$134m in 1Q15 (1Q14: HK$128m). The total traffic
volume and toll revenue of CMH’s toll portfolio grew by 7% and 2%,
respectively led by strong traffic growth at Yongtaiwen. In 1Q15, toll revenue for
Guihuang was affected by the decrease in traffic volume of large goods vehicles
following the use of a large local road transportation centre as well as the traffic
diversion from a neighbouring toll road after the completion of its major
upgrading works. Nevertheless, it managed 10% earnings growth on a recurring
basis.
Continued expansion via M&A
We expect CMH’s future acquisitions to be backed by its strong operating
cashflow and benign net gearing of 34% as at end-1Q15. The net gearing could
be further strengthened to 0.24x once the HK$719m convertible bonds are fully
converted. We estimate that CMH could finance an acquisition worth
HK$1.5bn-2.5bn with cash and debt, without exceeding the maximum 0.6x net
gearing level that management is comfortable with.
Hold for good dividends while awaiting catalysts
CMH will go ex-dividend on 12 May (adjusted for a final DPS of 3.5 Scts for
FY14 and a 1-for-20 bonus issue), following which our target price would be
adjusted to S$1.10 to reflect the enlarged share base.

[greengiraffe]

DBS Maintain BUY, and ex-dividend TP of S$1.42

Core earnings in line
 Excluding a one-off gain in 1Q14, 1Q15 earnings
rose 8% y-o-y to HK$142m
 Revenue grew 6% y-o-y to HK$494m, driven by
Yongtaiwen E’way and newly acquired Jiurui E’way
 Further upside from potential acquisitions
 Maintain BUY, and ex-dividend TP of S$1.42
Highlights
Slow start to 2015 in terms of toll revenue growth
 Revenue growth at Yongtaiwen E’way (+4.5% to
Rmb295.2m) and Guiliu E’way (+2.7% to Rmb160.6m)
were offset by lower numbers at Guihuang Highway (-5.5%
to Rmb48.6m) and Beilun Port E’way (-1.1% to
Rmb70.1m). Still, overall revenue growth of 6% drove
core earnings growth of 8% to HK$142.3m, compared to
last year’s HK$131.5m (last year’s net profit of HK$148m
included HK$16.5m compensation received by Guihuang
Highway.)
Newly acquired Jiurui E’way provided a small boost
 Jiurui E’way, which was acquired in Sep-14, contributed
Rmb18.7m in revenue and a small profit contribution of
HK$7.4m to the Group.
Outlook
Earnings to continue growing
 The acquisition of Jiurui E’way will help expand the Group’s
business, lengthen the average remaining concession of the
road portfolio and improve its future earnings prospects.
This acquisition, along with organic growth, should help to
continue driving the Group’s earnings.
Potential for debt-funded acquisitions
 With the outstanding convertible bonds well in the money,
we expect the remaining convertible bonds to be fully
converted by end-2015, which will lower the Group’s net
gearing to just 0.18x. This gives the Group debt-headroom
for acquisition deals of between RMB2.5bn and RMB4bn
(which would take FY15 net gearing from c.0.5x to 0.7x),
compared to an enterprise value of c.RMB2.8bn for the
Jiurui Expressway deal.

[greengiraffe]

Hungry people are disgraced lot?

http://www.straitstimes.com/premium/foru...s-20150504

Don't let food cause disruptions
Published on May 4, 2015 1:07 AM
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I RECENTLY attended a few annual general meetings (AGMs), and observed that a majority of the people were there more for the food than the meeting's agenda.

Before the AGMs ended, many could be seen leaving the room so that they can be the first to reach the buffet table.

Some were also packing food to take away.

Many companies try to solve this problem by giving out meal coupons to help prevent a rush for the food.

However, this does not solve the problem completely, as can be seen at the recent China Merchants AGM.

The meeting was at 4pm but quite a number of shareholders arrived at 4.30pm, one of whom disrupted the meeting because he was told that there were no more meal coupons.

He was joined by a few other shareholders and, together, they caused the extraordinary general meeting after the AGM to be disrupted.

It reflects badly on the nation when someone feels the need to barge into a meeting to demand a meal coupon.

Is food really an entitlement at all the AGMs?

If required, perhaps meal coupons can be handed out and redeemed before the start of an AGM.

Those who are there only for the food - some of whom tend to talk during the sessions - can then take the coupons and leave without attending the meeting.

Alan Ng Soon Hock