Willas Array: PE 3X

yeng
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12 years 11 months ago #6094 by yeng

Replied by yeng on topic Re:Willas Array: 10% yield

dear marcus, i agree that it looks puzzling to issue rights to increase their working capital and then they gv a nice dividend.

however, after looking thru their financial statements, I feel that the matter can be viewed in this perspective.

Willas Array was going to gv a final dividend anyway in line with their previous year payout.
in fact, this time the div is lower than last year's (1.8 cents).

in other words, the funds they raised thru rights issue was what they needed to raise for working capital.

The stock is inching up and closed at 16.5 cents. The yield is still very nice at 10%.

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marcus168
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12 years 11 months ago #6096 by marcus168

Replied by marcus168 on topic Re:Willas Array: PE 3X

Dear Yeh,
Right Issue they raised about $7.5 millions. Estimate cost for right issue 1 to 1.5 millions? Estimated raised $6millions
Dividend Payout about $6 millions.
They have about 430 HK millions cash. More than enough for working capital.
Basically shareholder flok out 7.5 millions and give get back $6 millions within 3 months. And wasted 1.5 mllions for doing extra work that worth nothing.
Did I calculate wrongly?? If calculation is right basically negative Dividend.

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yeng
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12 years 11 months ago #6098 by yeng

Replied by yeng on topic Re:Willas Array: PE 3X

Marcus, thank u for yr sharing -- but are you very certain that the cost of a rights issue is so high?
I would think it's half of that. A couple of hundred K.

If you are right then my interpretation of the rights issue is that, given a reasonably positive market, they seized the opportunity to add to their working capital. Get it now whiel you can-- and in the meantime, continue to pay out the dividend. In that sense, I disagree with yr view on 'negative dividend'.

I found a previous article on WA. Seems like they were pretty conservative in talking about their prospects last year. which is good -- they dont over-sell their story.
WILLAS-ARRAY: Rides electronics boom, reports record HK$71 m profit

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Dongdaemun
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12 years 11 months ago #6111 by Dongdaemun

Replied by Dongdaemun on topic Re:Willas Array: 10% yield

Tomorrow, WA will give a presentation at CIMB... fyi.

www.cimbinvest.com

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niadmin
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12 years 11 months ago - 12 years 11 months ago #6123 by niadmin

Replied by niadmin on topic Re:Willas Array: PE 3X

Specially for marcus168, yeh and the rest of those who did postings on Willas Array: we have just attended the CIMB presentation by WA. We asked some questions to clarify the rights issue cost, rationale, etc. and have the answers. Look out for our report tomorrow morning!

Last edit: 12 years 11 months ago by niadmin.

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Rich
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12 years 11 months ago #6185 by Rich

Replied by Rich on topic Willas Array: PE 4X

Net Asset Value for Willas Arras is around 30 Singapore cents. Stock price currently SGD0.17

P/NAV = 0.57

Dividend yield = 10%. PE about 4X (based on FY11 ended March)

Looks cool. Just that the net profit margin ain't cool. Just 2+%.

What to do... it's a distribution business. But kudos to the company for the 10% dividend yield. How many stocks you know have done that for 2 years in a row ? And the payout ratio is very high . Just look at chart in the article by NextInsight.

WILLAS-ARRAY: Dividend yield is 10%, dividend is 45% of earnings

www.nextinsight.net/index.php?option=com...cle&id=3939&Itemid=1

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