P/E : 3.17 (Price 1.57 /Basic EPS 49.6) – Price closing as at 31/10/2014
P/BV : 0.62
NTA : 2.54
Dividend per Share : 0.05 (0.025 ex at 9 June and 0.025 ex at 2 Dec 2014 - annualized)
Dividend yield : 3.18% (Closed 1.57 at 31/10/2014) (payout ratio is 13.48%)
Quick Ratio : 2.06 (12 months June 2014) – PASS
Debts/Equity Ratio : 0.56(12 months June 2014) – PASS
OLH is a veteran stockbroker. Always do what he does best; to create more value for the company/himself. For our case study, Malaysia market average for taking over regardless of MGO or VGO for mid cap property related is around 6x~8x PE. He is buying from the minority at 50% market rate (PE 3.17).
- Higher OSKH shareholdings = higher value in RHBCap (will be more benefitted if CIMB/RHB/MBSB merged)
- To concentrate and build OSKH as a 1st tier developer (combination of PJD, OSKP, OSKH)
We drill deeper for 2013 statements:
P/E : 7.23 (Price 0.94 /Basic EPS 13) – Price closing as at 1/7/2013
EPS : 0.13
Dividend per Share : 0.05 (no change compare to 2010, 2011, 2012, 2013)
Dividend yield : 5.3% (30 June 2013)
2014 EPS = 0.49 (ignore)
2015 EPS = 0.156 (EPS 2013 + 20% EPS growth)
1.60 / 0.156 = PE 10.2, dividend yield 3.12%, if I am OLH, why I would want to pay you so high? I just want to surface PJD’s 2014 earnings just enough for me to swap for higher OSKH shares.
Total income 2014 = RM 224m vs total receivables 2014 = RM 532m
PJD offer is a VGO and not MGO, there is no time frame from a VGO to be concluded. Why want to sell when you are being given a bad deal? If, OLH fails to get to get the shares, this merger will be off and potentially PJD price will return to its true value. If OLH able to get the majority shares, a MGO will kicks in, then only we shall evaluate again.
Offer 1.60 to buy my 2.54 is not fair and not reasonable, REJECT the VGO offer.
Even if I bought much earlier from 0.5 to 1.60, why I want to sell cheap?
2. If I do not have PJD shares:
Buy. I will accumulate PJD shares at 1.60 +-.
VGO is not a major concern. OLH is likely not able to accumulate the majority shares for privatization.
3. If VGO fails, most likely price will recover. If VGO succeeded, you will end up holding OSKH shares which is first tier property stock! How bad can it go?