China Merchant Pacific Update

Accordingly, as at 5.00 p.m. (Singapore time) on 8 June 2016, the total number of (a) Shares owned, controlled or agreed to be acquired by the Offeror and its Concert Parties; and (b) valid acceptances of the Offer, amount to an aggregate of 1,568,880,555 Shares, representing approximately 87.43% of the total number of issued Shares of the Company.

I have yet to accept the GO offer. Wait till next week to see what happen. No hurry.

China Merchant Pacific - Buyout Offer $1.02/shr

China Merchant Group has launched a conditional voluntary cash offer of $1.02/shr for
China Merchant Pacific. the price will not be adjusted for the dividend to be paid on 19th May( 3.5 cents /shr).

The offer represent a premium of 22.9% over the last traded price of 83 cents on 5th May before trading halt pending news release.The Offeror current own 75.9% of the shares and intend to privatise and delist the company.

Frankly, I sort of saw this coming since last year when the the Offeror (through Easton Holding) took up all the rights issue at $1/shr when the share price was trading below $1.You list a company so that you can raise capital but if you cannot effectively raise capital and you own more than 75% of the company then it will make better sense to delist. Maybe their intention is to delist and then relist on HKEx later on.

As for me, I had the fortune to bought an additional 10 lots at 76 cents two months earlier
on top of what I already own. All in all, my average purchase price/shr is around 60 cents (exclusive of dividends). So the current buyout offer is attractive to me. The only remorse is that there is less one good company to invest in SGEx.

China Merchant Pacific 1QFY16

Revenue                          HKD 634,672,000
Net Profit                        HKD 254,305,000
Operating CF                  HKD 782,234,000
Short Term Debt             HKD 675,135,000
Long Term Debt             HKD 8,308,933,000
Cash & Cash Equiv        HKD 2,353,233,000
EPS                                 9.07 HK Cents
NAV                               HKD 5.44

China Merchant Pacific FY2014

Revenue                                                              = HK$ 2019m
Net Profit Attributable to Shareholders              = HK$ 739m
Net Assets                                                           = HK$ 8930m
Net Borrowings                                                  = HK$ 3198m
Net Gearing                                                        = 0.36
EPS                                                                     = 69.80 HK cents
NAV                                                                    = HK$ 6.10
ROA                                                                    = 6.8
ROE                                                                     = 11.6
FCF                                                                      = HK$ 1705
DPU                                                                     = 3.5 SG cents (2HFY14)

CMPF proposed a bonus shares issued of 20:1 in addition to the 3.5 SG cents for FY2014.Based on CMPF FCF, it can quite comfortably handle the net borrowings.I am reasonably happy with this counter as I have held it for more than 4 years.

China Merchant Pacific - Jiurui Expressway

CMPF today hold a EGM to approve the acquisition of Hong Kong Honest Queen International Investment Limited which is the holding company of Jiurui Expressway Co.It was overwhelming majority approved.

It will issue 119,374,987 shares at 0.985 apiece which will raised approx. RMB580m. In addition, it will pay an additional RMB117m cash for a total consideration for a total of RMB697m for the purchase. The issued share will be about 16% of total ordinary share capital issued.

Net Asset Value after purchase will be at HK$5.82. EPS will be at 52.09 HK cents.Gearing will be at 30%. All are calculated based on full diluted convertible bond conversion.

Jiurui is a 48km expressway in Jiangxi with toll lease lasting till dec 31 2040.

The current deal look much more attractive than the previous proposal that was dropped due to some issues with getting approval for the NZ property business that was also packaged in the proposal.

CMPF 1QFY2014

Revenue                                 = HKD 464m
Profit (attributable to shr)      = HKD 148m
EPS                                        = HKD 14.84 cents
NAV                                      = HKD  6.36
Total Borrowings                  = HKD 3,662m
Net Borrowings                     = HKD 2,026m
Cash from Ops Activities      = HKD 270m
Cash & Cash Equiv               = HKD 1,636m

Note: Net borrowings fell from HKD 2,220m (FY2013) to HKD 2,026m (1QFY2014).

China Merchant Pacific FY2013

Revenue                                 = HKD 1.9b
Profit (attributable to shr)      = HKD 614m
EPS                                        = HKD 61.34 cents
NAV                                      = HKD  5.98
Total Borrowings                  = HKD 3,668m
Net Borrowings                     = HKD 2,220m
Cash from Ops Activities      = HKD 1,208m
Cash & Cash Equiv               = HKD 1,448m

Note: Net borrowings fell from HKD 3,175m (FY2012) to HKD 2,220m (FY2013).

CMPF 3QFY2013

Revenue                                 = HKD 486 m
Profit (attributable to shr)      = HKD 145.8m
EPS                                        = HKD 14.64 cents
NAV                                      = HKD  5.87
Interest Bearing Liabilities (curr)         = HKD 256m
Interest Bearing Liabilities (non curr)  = HKD 3,443m
Cash from Ops Activities                     = HKD 352m
Cash & Cash Equiv                              = HKD 1,533m

China Merchant Pacific 2QFY2013

Revenue                                                   = HK$479,763,000
PAT (shr)                                                 = HK$175,738,000
Total Assets                                             = HK$13,455,542,000
Total Current Liabilities                          = HK$1,708,451,000
Total Non-Current Liabilities                  =HK$4,379,869,000
Interest Bearing Liabilities (current)        = $271,167,000
Interest Bearing Liabilities (non-current) = $3,680,901,000
Net Assets                                                 = HK$7,367,222,000
Net Asset Value                                        = HK$5.64 (Assume RCPS Conversion)
EPS                                                           = 17.42 HK cents
Cash Flow from Ops                                = HK$411,477,000
Cash & Cash Equiv                                  = HK$1,603,352,000
Convertible Bonds                                    = HK$1,163,000,000 (convert price 0.84 HK cents & about 30% of issue shr capital)

China Merchant Pacific Q1FY2013

Revenue                                = HK$436,355,000
PAT (shr)                              = HK$128,429,000
Total Assets                          = HK$14,307,980,000
Total Current Liabilities          = HK$2,829,078,000
Total Non-Current Liabilities  =HK$4,180,720,000
Net Assets                            = HK$7,298,182,000
Net Asset Value                    = HK$5.5 (Assume RCPS Conversion)
EPS                                       = 16.29 HK cents
Repayment of Bank Loans     = HK$466,913,000
Cash Flow from Ops             = HK$321,735,000
Cash & Cash Equiv               = HK$2,236,449,000
Convertible Bonds                 = HK$1,163,000,000 (convert price 0.84 HK cents & about 30% of issue shr capital)

CMPH - Q1FY2012

Results released on 27/4/2012.

Revenue                                         = HK$370,127K
Net Profit After Tax                        = HK$179,502K
Net Profit Attributable to Company = HK$112,184K
Non-controlling Interest                   = HK$67,318K
EPS                                                = HK 13.13 cents
NTA                                               = HK$5.02