(14-12-2016, 06:01 PM)bardsmanship Wrote: This thread should really be renamed AF Global and moved to the appropriate subforum.
Since the takeover, AF Global has been distributing significantly more dividends than it earns.
For FY 2015, EPS was only 1.07c, but a total of 3.50c of dividends/share were paid out.
Likewise, this year EPS for 9M 2016 adds up to only 0.55c, but management has already declared interim and final dividends/share of 2.25c.
Are the Koh brothers using the cash generated from this company to service debt in their main companies? Aspial in particular is quite heavily indebted... but why make an offer for 33c/share in the first place then?
Btw is AF Global stands for Aspial-Fragrance Global?
Aspial leveraged to venture into Australia and so far has been pretty successful. They have currently 1.5bil sgd of sales locked in from Sg and Aus which will be progressively recognised till 2020. The amount of future money coming in is already more than their total debt. Latest quarter to quarter they have reduced 100mil of borrowings.
https://www.tropicnow.com.au/2016/octobe...world.html
Also after almost selling out Aus 108 and Avant, their next venture at Cairns(Nova City) seems pretty well received, already 20% of the units launched sold including two penthouse(Since Oct).
In my view, if we compare balance sheet and future money, Aspial retail bond seems to be a much better choice than Hyflux retail perp.