tag:blogger.com,1999:blog-25714039.post248013312009492458..comments2023-10-26T00:17:28.411+08:00Comments on A Private Portfolio: HKR International Limited purchasedtraineeinvestorhttp://www.blogger.com/profile/05179861120801348035noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-25714039.post-13095087143830893532012-01-25T16:17:30.280+08:002012-01-25T16:17:30.280+08:00will book profit around 1 billion from sukhothai r...will book profit around 1 billion from sukhothai residences split this year and next.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-25714039.post-40725592614303843682012-01-20T08:15:48.863+08:002012-01-20T08:15:48.863+08:00Hi Juan
A good question and one that should alway...Hi Juan<br /><br />A good question and one that should always be asked. In this case the margin for error is pretty extreme (even by the discount factors which typically apply to property companies listed in Hong Kong):<br /><br />NAV as at 30 Sept (per interim report): HK$10.30 per share which implies a discount of 75%<br /><br />NAV assuming a somewhat 10% fall in asset values (in line with the HK residential market, adjusting for the 12.9% gearing and assuming HK$90 million in free cash flow for the second half year: HK$9.20 which implies a discount of 72%<br /><br />I do expect the company's profits to fall significantly in the current half year, but that is largely irrelevant to the investment case.<br /><br />Cheers<br />traineeinvestortraineeinvestorhttps://www.blogger.com/profile/05179861120801348035noreply@blogger.comtag:blogger.com,1999:blog-25714039.post-62159451910382879652012-01-20T02:01:05.472+08:002012-01-20T02:01:05.472+08:00buying for a quarter of NAV sounds like a pretty g...buying for a quarter of NAV sounds like a pretty good deal. Now to wait and see if that NAV value is realistic :)Juanhttp://bluesauger.comnoreply@blogger.com