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29-06-2011, 12:55 PM
Popular's FY11 (ended 30Apr11) full-year results (first released on 24Jun11, last Friday) makes interesting reading...
http://info.sgx.com/webcoranncatth.nsf/V...9003C5DBB/$file/SGX_Announcement_30April2011.pdf?openelement [results announcement]
http://info.sgx.com/webcoranncatth.nsf/V...9003AE07B/$file/PopularPressReleaseFY11ENG.pdf?openelement [press release]
While FY11's PBT and NP at group level are both down - chiefly due to a much lower $6.475m write-back of impairment for
development properties, vs. $21.684m in FY10 - the underlying total earnings at PBT level for the 2 core Retail &
Distribution and Publishing/e-Learning divisions have registered a solid 53.9% y-o-y increase or improvement, and this positive trend appears quite sustainable. With the remaining units in the completed "18 Shelford" condo project selling, the Property Development division should bring in a few million dollars of extra profits in FY12.
A Final dividend of $0.006/share declared, making a total payout of $0.01/share for FY11.
Based on sustaining profitability at group level and a solid B/S with an increasing nett cash reserve, there is really no reason why Popular should be trading at such a large discount from its latest (as at 30Apr11) NAV/share of $0.2268. By rational thinking, Mr Market should be quite willing to price Popular at a decent premium over its corresponding NAV/share. A relevant question: Would this happen any soon?
http://info.sgx.com/webcoranncatth.nsf/V...9003C5DBB/$file/SGX_Announcement_30April2011.pdf?openelement [results announcement]
http://info.sgx.com/webcoranncatth.nsf/V...9003AE07B/$file/PopularPressReleaseFY11ENG.pdf?openelement [press release]
While FY11's PBT and NP at group level are both down - chiefly due to a much lower $6.475m write-back of impairment for
development properties, vs. $21.684m in FY10 - the underlying total earnings at PBT level for the 2 core Retail &
Distribution and Publishing/e-Learning divisions have registered a solid 53.9% y-o-y increase or improvement, and this positive trend appears quite sustainable. With the remaining units in the completed "18 Shelford" condo project selling, the Property Development division should bring in a few million dollars of extra profits in FY12.
A Final dividend of $0.006/share declared, making a total payout of $0.01/share for FY11.
Based on sustaining profitability at group level and a solid B/S with an increasing nett cash reserve, there is really no reason why Popular should be trading at such a large discount from its latest (as at 30Apr11) NAV/share of $0.2268. By rational thinking, Mr Market should be quite willing to price Popular at a decent premium over its corresponding NAV/share. A relevant question: Would this happen any soon?