*Official* China Merchant Holdings (Pacific)

wahkao3

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I am one of the China Sky holders. 4 years of suspension. I know the pain of these China xxx counters.
imagine someone shorted this on CFD
even though he's likely to make profit, he will be paying 3-4% finance charge per year and there's nothing he can do about it!!! :eek:
 

kelvinkezz

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about time something bad happen to them, since china merchant holdings still own 70% of it. this will be a smack in the face for them.

:s13: i like your 'hidden' message behind this quote.

Will you be going for the upcoming AGM? Want to thank you personally for the detailed analysis you did on CMPAC on your website.
 

SpinFire

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Very strong set of results. 3.5c dividend, bringing full year dividend to 7c.
Bonus shares issue of 1 for 20 shares held. Not really familiar with this, but looks like an enforced dividend reinvestment scheme to help them retain capital for future acquisitions

Just to share my calculations for the bonus issue

From its announcement http://infopub.sgx.com/FileOpen/Announcement-Bonus_Issue.ashx?App=Announcement&FileID=336548

Bonus issue is done by 'transferring money from accumulated profits (retained earnings) account to share capital account'. They use $1.08 as the approx price per issued share.

For a shareholder holding 1000 shares, he'll get 50 bonus shares which is valued at 50 x $1.08 = $54. This equates to additional dividend payout of 5.4c per share. Considering the cash DPS of 3.5c, total DPS will be 8.9c, not bad.

I'm not sure if my calculations are correct, so please correct me if I'm wrong thanks :)
 
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kenpachi82

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imho, bonus shares are bulls* and doesn't serve any purpose. It just increases the total number of shares that's all. The EPS remains the same.
Unless they can maintain the 7cents payout next year, then its considered a 4+% increase in dividends yoy.
Bonus shares is not equal to extra dividends. Share price drops in proportion to the bonus payout (20/21: $1.06-->~$1.01). And you have to sell the shares and pay commission to cash out your 'bonus' shares. Unless bought using SC account or you are mega-huge investor, otherwise its totally not wise to do that.
Disclosure: Annoyed investor who was expecting the usual 4.25c divd
 

WindBoi

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imho, bonus shares are bulls* and doesn't serve any purpose. It just increases the total number of shares that's all. The EPS remains the same.
Unless they can maintain the 7cents payout next year, then its considered a 4+% increase in dividends yoy.
Bonus shares is not equal to extra dividends. Share price drops in proportion to the bonus payout (20/21: $1.06-->~$1.01). And you have to sell the shares and pay commission to cash out your 'bonus' shares. Unless bought using SC account or you are mega-huge investor, otherwise its totally not wise to do that.
Disclosure: Annoyed investor who was expecting the usual 4.25c divd

i was wondering since when was the dividend 4.25 cents. its usually 7 cents
 

WindBoi

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Very strong set of results. 3.5c dividend, bringing full year dividend to 7c.
Bonus shares issue of 1 for 20 shares held. Not really familiar with this, but looks like an enforced dividend reinvestment scheme to help them retain capital for future acquisitions

Just to share my calculations for the bonus issue

From its announcement http://infopub.sgx.com/FileOpen/Announcement-Bonus_Issue.ashx?App=Announcement&FileID=336548

Bonus issue is done by 'transferring money from accumulated profits (retained earnings) account to share capital account'. They use $1.08 as the approx price per issued share.

For a shareholder holding 1000 shares, he'll get 50 bonus shares which is valued at 50 x $1.08 = $54. This equates to additional dividend payout of 5.4c per share. Considering the cash DPS of 3.5c, total DPS will be 8.9c, not bad.

I'm not sure if my calculations are correct, so please correct me if I'm wrong thanks :)

like mr kenpachi says, the bonus issue does nothing. its basically like cmp telling you they would rather keep the cash then give you because they want to do something with it. the only benefit will only happen if in the future profits and cash flow becomes higher. then u have more shares then the same person if he buys from open market.

Noble was one which did a lot of bonus share issue >

20111220%20noble%20asset%20tracker.png


it is basically them saying they would rather retain cash flow. what really helped them was the commodity boom and the cash flow just got higher.

the share holder with original 1000 shares ended up with 10,000 shares but thats all financial engineering. if free cash flow doesn't rise, these stuff doesn't matter much

Felix's challenger is another one consistently doing bonus shares.

Noble Group Stock Factsheet: What the charts don't tell you about its overall returns
 

felixleong

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like mr kenpachi says, the bonus issue does nothing. its basically like cmp telling you they would rather keep the cash then give you because they want to do something with it. the only benefit will only happen if in the future profits and cash flow becomes higher. then u have more shares then the same person if he buys from open market.

Noble was one which did a lot of bonus share issue >

20111220%20noble%20asset%20tracker.png


it is basically them saying they would rather retain cash flow. what really helped them was the commodity boom and the cash flow just got higher.

the share holder with original 1000 shares ended up with 10,000 shares but thats all financial engineering. if free cash flow doesn't rise, these stuff doesn't matter much

Felix's challenger is another one consistently doing bonus shares.

Noble Group Stock Factsheet: What the charts don't tell you about its overall returns

ya lor, bonus issue may be a cover for them not needing to pay out more dividends

however those uncles and aunties just love bonus shares

also do note that CMP has lots of outstanding convertible bonds, so maybe bonus shares can help dilute the price? not too sure how bonus shares affects the CBs
 

cloudfire

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Can someone please kindly tell me if I'm correct in this train of thought?

Bonus shares is only useful if the companies can maintain the dpu in the subsequent quarters or financial years. I.e. I get more dividends because I am holding more shares.

However, if the total distribution income is the same in the subsequent quarters or financial years, bonus shares becomes useless because of the dilution. I.e. I get the same amount of dividends even though I'm holding more shares as the amount of dividends each share is giving me is reduced.

Tio bo???:s11:
 

wahkao3

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Can someone please kindly tell me if I'm correct in this train of thought?

Bonus shares is only useful if the companies can maintain the dpu in the subsequent quarters or financial years. I.e. I get more dividends because I am holding more shares.

However, if the total distribution income is the same in the subsequent quarters or financial years, bonus shares becomes useless because of the dilution. I.e. I get the same amount of dividends even though I'm holding more shares as the amount of dividends each share is giving me is reduced.

Tio bo???:s11:
u tink so complicated for what?
bonus shares is left pocket right pocket transaction
just like dividend, fully subscribed rights issue
 

felixleong

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Can someone please kindly tell me if I'm correct in this train of thought?

Bonus shares is only useful if the companies can maintain the dpu in the subsequent quarters or financial years. I.e. I get more dividends because I am holding more shares.

However, if the total distribution income is the same in the subsequent quarters or financial years, bonus shares becomes useless because of the dilution. I.e. I get the same amount of dividends even though I'm holding more shares as the amount of dividends each share is giving me is reduced.

Tio bo???:s11:

if next year dividend pay out is the same per share, then yes u get more dividends overall due to your new enlarged share base (having 5% more shares now due to the 1 for 20 bonus issue)

however the bonus issue may piss off serious investors who would rather see an increase in dividends and no bonus issue, as its troublesome to handle odd lot (especially when trying to sell away), and the extra cost too

anyway S-Chips sometimes got funny funny pattern one... now give u bonus issue let u happy happy song song first

then maybe next year do rights issue, ask you for more cash liao... just be careful ba
 

felixleong

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taken from VB forum

"In China, bonus issues are destructive as they are taxed for foreigners because it is a transfer from 'retained profits' to 'share capital' and this act is considered a distribution of profits. As such, the withholding 10% tax applies. . For example a ‘7 for 10 bonus issue’, if par value for 1 share is RMB 1, it is deemed a distribution of RMB 0.7 per share, and with 10% withholding tax, RMB 0.07 per share. Not too long ago, the Webb site had a blasting discussion on a couple of Chinese companies on this, as they were deemed to be doing 'national service' by paying the Chinese Gov tax, while shareholders did not receive any real cash (dividend) and ended up with an unchanged % ownership of the company. "
 

felixleong

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analyst piece from Kim Eng

Toll Roads: Sector to be revitalized by reforms?
24/03/2015
The toll road sector has long been ignored. The sector advanced 18% in 2014 primarily driven by its high yield and low interest rate environment, difficult to repeat such performance in the foreseeable future, in our view. The sector has been flat YTD in 2015.

Valuation-wise, the toll road sector is cheap at FY15F PER of 11x, 1.48x PB and 4-5% yield. However, the sector offers flat earnings growth.

The problems confronting the toll road sector include: (i) typically listed toll road assets have an average of 20 years before their toll collection rights expire - definite life expectancy, (ii) a well-built highway network in developed areas has made it increasingly difficult for companies to seek growth through new road construction, (iii) the upside for domestic toll standards is limited based on a comparison with overseas standards and the current policy push for lower logistics costs in China.

The toll road sector is an important area for SOE reform as state ownership is high, we see two possibilities (i) to introduce private investors, PPP scheme, (ii) use in asset securitization given their abundant cash positions, stable cash flows, good asset quality and cheap valuations.

Asset securitization means that local governments could use the toll road assets as collaterals in bond issues. There are some rumours in A-share market suggesting local governments may privatize some of these the toll road assets. Reason for such rumour, we believe, is that some local governments have used non-listed toll roads as collaterals in bond issues.

Whether this will become a trend, we have to wait and see. Undoubtedly, the listed toll road companies are cheap but many local governments are heavily indebted and may not have the financial strength to carry out such privatization. Nevertheless, it is worthwhile to pay close attention to monitor the progress.

Stocks worth to look at are:
Sichuan Expressway (107 HK), yield 3.6%
Jiangsu Expressway (177 HK), yield 4.8%
Shenzhen Expressway (548 HK), yield 4.2%
Zhenjiang Expressway (576 HK), yield 4.7%

By Benny Wong
 

felixleong

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(i) typically listed toll road assets have an average of 20 years before their toll collection rights expire - definite life expectancy,

why so much hype on toll road?
even 5% yield is too little
with 20 years lifespan, 5% is only break even

need at least 10% yield to justify investing in such assets right?

any views?
 
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