These are options for management to consider. Looking at events over the past 12 months, the management is clearly on top of things and the resultant additional cash flow for next 12 months could be immense from its core business revenue, shipping charters, sale or part sale of KTIS shares. Recent 1Q results were impressive.
Shareholders who are patient will be amply rewarded.
It all depends on how this investment is classified in the balance sheet. My take is that it will be treated as long term investments, hence will be accounted at cost (not marked to market). The difference in value should be commented in the notes of the financial statements.
A major milestone achieved and a potential game changer for the company. It can reward its shareholders with higher dividend payouts and/or use the cash for investing in other cash generating business (such as ship chartering)or retain some stake in KTIS. In my years of investing in small caps in Hongkong and Spore. King Wan would rank highly in my list in value creation for shareholders and the manner it is managed. In the past I have had some sparkling runs (2 to 3 baggers) in small caps in Hongkong, such as Sasa, Bonjour, Suga and I see King Wan in this light as well. Kudos to the management.
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