ABR continues to register stable earnings:
http://www.sgx.com/wps/portal/sgxweb/hom...ouncements
Earnings for the past four quarters totaled $4.4m on revenues of $105m and equity of $100m:
1Q17: $1.1m
4Q16: $1.2m
3Q16: $1.3m
2Q16: $0.8m
Based on this, net margins are ok at near 5%, but ROE is tiny at 4.4%. But if we remove the $80m cash --
which it does not need for non-expansion operations, and it has negligible debt -- from the equity, we will get an ROE of about 23%, which is pretty alright for an f&b outfit.
ABR is currently valued at $146m based on the last traded price of $0.73. Removing the cash from the market value, the f&b operations are valued at $66m, which gives a last twelve months p/e of 13.2. It doesn't seem attractive.
But probably the greatest risk to ABR is from within. From the quarterly comments, the desire to pursue property investment as a core feature of the group is clear, even though the last announced deal has been aborted. Seems like growth for ABR's f&b operations has slowed or stopped, and management is focusing on growth through property. After all, property allows one to put to work massive capital easily, and without the day-to-day oversight of operations that is required of f&b.