China Merchants Holdings Pacific

[Drizzt]

i doubt the manpower costs and maintenance cost will become substantial.

[valuebuddies]

3.95M shares traded this morning, largest volume in past 3 years. Someone seems buying big chunk at 0.89?

[Drizzt]

they need a partner to do a placement.....

[Nick]

HKSE-listed Zhejiang Expressway released their October 2013 traffic statistic for their expressways - http://www.zjec.com.cn/en/upload/2013111...592110.PDF

YTW and Beilun Port Expressway are located in this province and so while it is unwise to extrapolate these data, it could give insight on the macro performance of Zhejiang Province.

(Vested)

[Nick]

DBSV raised their TP to $1.20 and maintains its 'Buy' rating on CM Pacific with its latest report titled 'Full Steam Ahead' - http://www.remisiers.org/cms_images/rese...nt-buy.pdf

Personally, I am expecting FY 2013 NPAT to range from HK$550 - 600 million. I don't think there will be any increment to the 5.50 cents dividend until the convertible bonds are converted to common shares.

CM Pacific closed at $0.910.

(Vested)

[Nick]

UOB released a report on the Toll Road Sector (focused on SEHK listed companies) and the positive effects of adjusting the holiday calendar.

http://research.uobkayhian.com/content_d...891154cf34

(Vested)

[Jack31]

100% contribution from guihuang till 2017, Part of expressway expire 6 years earlier in 2021.
Any comments from gurus? (etc, nick, drizzt, gg)
Haaaaaa...

[Drizzt]

they say it will be immaterial but it shows how susceptible policy changes are over there

[Jack31]

Yup, wonder why they consider it as immaterial, maybe referring to FY13..
The party who lose out most seems to be the local partner.
It's quite ridiculous how the governor can "suka suka" revise the expiry date -_-"

[Nick]

It is likely the local partner is the Government - consider how it never had a share of the profit for nearly 2 decades. I think revenue-wise, it will be neutral. Definitely accretive to our earnings till 4Q 2017 and then decline in contributions post 2021 with only Eastgate contribution. So overall, it is likely to be neutral. What is more 'scary' is how laws can be changed. We are fortunate the company has SOE lineage which enables some favourable 'compensation'.

(Vested)