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Crossholding hotelier cum office coy SHUNHO HOLDING(00253) and SHUNHO PROPERTY(00219). Headed by son in law of Henderson Land.
Deep valuation metric for 00253 especially.
1.3X price to fcf
73% fcf yield
0.137x book(hotels all at cost less depreciation)
Consistently positive fcf since inception
Quality earnings with 1.613x trailing pe at current price 2.10
They can potentially churn out cash equivalent to market cap in 1.3 years!
The crossholding and lack of div is an issue but its subsidary the listed Shunho Property is already starting to payout div and increasing yearly.
Anyone has any views on this?
Thanks!
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look into this group of companies before. I thought there is 1 more level - Magnificent Estates( or something like that)
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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I never invested in Shun Ho group of shares.
I think the middle one 219 HK is the best since all distributions (cash or in-specie) will have to pass through it.
the best for minority will be when the boss want to flatten the structure via share swaps and in-specie distributions.
it is been done before for the Lai Sun group, I think. I never really read it up.
Other than that, it is better to be paid (via div or NAV growth) while waiting for the unlocking of assets. Which may come one day when the boss croaks.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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26-07-2019, 09:41 PM
(This post was last modified: 26-07-2019, 09:41 PM by soros.)
I think there is more chance of a substantail price gain happening in Lai Sun.( 00191.HK )
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27-07-2019, 04:53 AM
(This post was last modified: 27-07-2019, 04:57 AM by soros.)
Lai Sun ( 0191.HK ) started as a garment company and branched out with subsidiary company , Lai Sun Development ( 0488.HK ) which is a substantial property development company.
Due to near collapse 20 years ago , the companies did not pay any dividend for about 17 years but recently the companies have resumed paying a tiny dividend.
About 3 years ago, the Lam family held 50% shares in Lai Sun ( 191.HK ) but it seems some family members have been buying the shares and taken the total family holding to 75%.
The share price is around HK $10 ( for 191 ) and HK $12 ( for 488) but the NAV of both companies is over HK $50 .
The company is headed by Peter Lam who has been appointed to head the HK Trade Development Council.( HK Government Unit ) in September . So I am expecting a higher dividend otherwise there is no point raising the family stake from 50% to 75%
As for Shun Ho Holdings ( 253 ) it has not paid any dividend during last 5 years. NAV is $12 .76 and shares are around $2.06
ShunHo Property ( 219) shares are priced around $2.80 and pays 6.9 cents dividend . NAV is $12.30.
The problem for prospective investors is Willian Cheng, CEO has not given any indication he wants to deliver the profits to its shareholders.
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I think it is good to learn about Lai Sun group and other HK multi-stack listed company. The pattern that they will unlock the value will more or less similar.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster