KING WAN CORP -- loads of cash

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06 Apr 2014 11:41 #19592 by Mel
Replied by Mel on topic KING WAN CORP -- loads of cash
TQ flysummer. Are you related to Sumer, the property guru?

Ok, the IPO is NOT in time for King Wan to recognise gain on disposal of the Thai associates for FY2014 as the FY ended in March 2014. The final dividend would still be 1 cent, I guess.

However, there is nothing to prevent King Wan to declare a special dividend of ? cent. :P

By the time, it finalises its FY14 results & releases it, it would be late May and the Thai IPO would have been completed (ie, late April).

My guess is it would incorporate a special dividend. 1.5 cent special pls!

It's been a long time coming for all shareholders, no thanks to the Thai rioters.

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06 Apr 2014 13:03 #19593 by sean06
Thai sugar production at record high

Thailand is looking to a record sugar production from the current 2013/14 harvest season, at 11.2 million tonnes, as a result of the improved quality of the cane being delivered to the mills, according to the research unit of Siam Commercial Bank.

Published: 04/04/2014 at 02:51 PM
Writer: Online Reporters
SCB Economic Intelligence Center's economists Chotika Chummee and Kiattisak Kumse said in an analysis that Thailand had already produced 10.9 million tonnes of sugar this harvest season, as of April 1.

They projected another 3.5 million tonnes of cane will be crushed before the end of season in May, resulting in total sugar production of 11.2 million tonnes, or 11.8% more than the previous harvest year.

It was expected the total amount of sugarcane entering the crushing process for the 2013/14 crop year would be similar to the previous year, around 100 million tonnes.

The record production was the result of an improvement in the yield from the cane, at 12.5 CCS (Commercial Cane Sugar, a measure of recoverable sugar in the cane), which is 8.7% higher than the previous crop.

One reason for this incresed yield is that farmers deliver fresh cane to the crushing mills, instead of burning off first. Farmers are using more of harvesting machines, instead of harvesting by hand, which results in a better quality of raw material for the factories.

The longer period of cool weather than usual has also contributed to the improved yield.

Thailand was the world's second-biggest sugar exporter last year, behind Brazil.

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06 Apr 2014 15:33 #19595 by newsman
Holding cost in KW is low + 1 c Divi is good. A Good Stock to ride thru the THAI riot. Riding thru the THAI political storm can b scary for some.

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07 Apr 2014 14:35 #19601 by Mel
Replied by Mel on topic KING WAN CORP -- loads of cash
Special dividends: For FY13 (ended March 2013), for the second year running, King Wan will be paying 1.5 cents a share as ordinary dividend.

The disposal of KTIS shares would place the company in a position to reward shareholders further.

Asked to comment on analyst reports by SIAS Research and OSK-DMG about King Wan being able to pay special dividends for several years, management said the analysts had studied King Wan's cashflows and track record of rewarding shareholders with special dividends.

"We don't think their assumptions are wrong."

OSK-DMG analyst Lee Yue Jer has noted in a report that the M&E business currently contributes S$5m-7m of cash, which easily pays for the 1.5 cent ordinary dividend totaling S$5.2m.

The analyst said if King Wan wanted to, it could sell the KTIS shares gradually and be able to pay 1.5 cent a share as special dividend annually over 10 years -- assuming the sale price is S$48 million in aggregate.

"This doubles the dividend to a juicy 9.7% yield sustainable for the next 10 years," according to the analyst.

www.nextinsight.net/index.php/story-arch...and-special-dividend
The following user(s) said Thank You: yeng

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09 Apr 2014 12:14 #19620 by flyersummer
PE Mar 14 F is high at 17.5x, net cash position. May want to ride till 40c and dispose

King Wan: Time To Double The Dividend (BUY, SGD0.30, TP:

SGD0.43)

Lee Yue Jer, +65 6232 3898 (This email address is being protected from spambots. You need JavaScript enabled to view it.),

An article in last Friday&rsquo s Bangkok Post stated that Kaset Thai will be

listing on 21-23 April. This means that King Wan will be able to realise

part of the value of its Thai holdings and begin paying a special

dividend. We raise our final dividend (to be declared in May) forecast

to 1.5 cents and maintain our expectation for a total dividend of 3

cents in FY15, doubling the yield to 10%. Maintain BUY and SGD0.43

TP.

Kaset Thai Industry Sugar (Kaset Thai)&rsquo s IPO to go ahead. The

Bangkok Post published an article on 4 April that stated that Kaset Thai

plans to float 957.83m IPO shares from April 21-23 to raise funds for its

expansion. This is the key catalyst that investors have been waiting for and

comes as a positive surprise after the recent news that the IPO deadline

had been pushed back to Aug 2014.

IPO price not confirmed but King Wan will benefit either way. If the IPO

is priced high, King Wan will be able to offload its stake in its Thai associate

at an attractive price during the IPO period. If the listing multiple is on the

low side, the company will receive more shares in Kaset Thai, as the value

of its stake is fixed at c.SGD50m. King Wan will, thus, enjoy upside

potential plus possible yield on its Kaset Thai shares. Either way, the

company&rsquo s shareholders will benefit from the upcoming IPO.

Raising dividend forecast for FY14 final dividend. We expect King Wan

to liquidate part of its Kaset Thai stake regardless of the IPO valuation. This

will result in sufficient cash inflow to pay a higher dividend. We believe the

potential final dividend for FY14 is in the 1.5-2 cents range, but estimate it

at 1.5 cents to be on the conservative side.

Time to double the dividend, maintain BUY and SGD0.43 TP. We

continue to expect King Wan to pay a 3 cents dividend every year from

FY15 onwards, with 1.5 cents from its core businesses and 1.5 cents from

the continued liquidation of its Kaset Thai stake. This raises the foreseeable

sustainable yield to 10%. Maintain BUY and SGD0.43 TP, which is based

on a 7% yield.

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20 Apr 2014 17:29 #19695 by flyersummer
KTIS : Kaset Thai International Sugar Corporation Public Company Limited

Type of Business The company is sugar producer and distributor. The company also has other business related to sugar production process, such as producer and distributor paper pulp, ethanol plant and power plant.
Secondary Market The Stock Exchange of Thailand (SET)
Industry Group / Sector Agro & Food Industry / Food and Beverage
Status Approved Filing
No.of IPO

Not more than 957,827,000 shares(Not more than 585,427,000 new shares and Not more than 372,400,000 existing shares)
IPO Period

21 - 23 April 2014
IPO Price:

10.00 Baht
Par Value 1.00 Baht
First Day of Trading

28 April 2014
Financial Advisor Kasikorn Securities Public Company Limited

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