Agree it is rojak. However, could this be the equivalent of the fantastic Whampoa Rojak?
My broker sent me that osk guy's new report this morning:
King Wan (KWAN) reported 3Q13 results yesterday, which were generally in line with expectations. The SGD167m order book is equivalent to three years' work, supporting the core 1.5¢ dividend. We continue to expect special dividends of 1.5¢ from the sale of the Thai Associates over the next 10 years, raising the yield to 9.7% for the next 10 years. TP of SGD0.40 maintained based on 7.5% yield.
IPO prospectus comingout in March 2013. IPO should be around May 2013.
King Wan Corp is attractive to me. I cite DMG report on its cash generation ability:Â
"Strong operational cash flows. We see KWAN’s core M&E business generating about $4.5m - $7m of cash per year. The sale of the Thai Associates could be spread over 10 years, adding another $4.75m per year. As such, we consider KWAN’s baseline cash generation to be almost $10.5m a year, which is 11% of the market cap and 49% of the net cash hoard today. On top of this, KWAN’s property developments provide profits and cashflows in sale and completion years."
Also:Â Very strong cash generation ability. Between operations and investments, we seeKWAN generating between $10m - $26m of cash per year between FY14F and FY18F.Taking $12m as the reference point, this is equivalent to 12.7% of the market cap and55.8% of the net cash balance. We expect a net $1m cash outflow in FY13F due to the$3m investment in the Crown 58 and advances for the Dairy Farm development. The largespikes in FY15F and FY18F are the cash returns from Starlight Suites and the Dairy FarmRoad developments respectively. This very strong cash generation ability underpins ourconviction that KWAN can easily pay 3Â¢ in dividends ever year, totally an annual outlay of$10.5m.
Anyone knows the timeline for the IPO of Thai company....?