This morning I added a few more shares in HKR International Limited (HK:480) to the portfolio. HKR is primarily a property developer and investor with interests in hotels and a few miscellaneous assets. The balance sheet is solid with relatively little debt and a reasonable amount of cash on hand.
The shares are trading at around a quarter of the guesstimated NAV. Given the combination of the irregular nature of developers' profits, the impact of changes in property prices and currency movements (among other factors), determining current NAV involves even more guess work than usual, but there is a substantial margin for error. Likewise, while I do not expect last year's dividend to be maintained, I am still expecting a healthy dividend yield on the current share price.
Lastly, the company has a good track record of not diluting shareholders' interests by issuing new shares and this is a positive.
I paid HK$2.57 for the additional shares.