LOW P/E
AND TRADING WAY BELOW BOOK VALUE
LOAD UP
COMING !!!!!
It is natural to be concerned about a company giving out more than it earns. Blue chip companies also do that. One very good example is Starhub. Initially its share price dived as doomsayers predicted the business is but the latest results is anything but unsustainable.
Aptt did not have to burrow to give out the dividends. The Taiwan government has forced the operators to change broadcast to digital format and to cap basic tv subscription of the old analogue broadcast. That' s why Aptt is saving cash for capital expenditure. Their newest concession Taichung, is fully wired for digital broadcast this year. Subscription numbers are increasing but the big profit will take a while to come in as they still have to encourage old subcribers to change to digital format and incentives will have to be given. The numbers are encouraging. It should take about 2 years for the business to go back to normal. Meanwhile I will collect the generous dividends and wait. You probably don' t get this price when that happens. Their creditors are not worried and Temasek is not worried.
Also presently there is no majority shareholder. Mr Lu, who just bought over the management company of Aptt has only a small stake and Temasek has about 8%. So a tussle for majority control may happen. However please DYODD.
debt level never change much isint a good thing.. but anyway, peers like singtel/M1/starhub also got the same problem of having huge non current borrowings.. they are also working for the banks forever and probably dont have the intend to cut down on the debt on long term perspective.. but the difference is that this counter seems to award more dividend per share than the earnings per share they have, which makes one wonder if this dividend is going to be sustainable in the long run
Their debt level has not changed much from 2015. InmyTaiwan dollar terms it has increased slightly but in Sing dollar terms it has decreased slightly. This is due to exchange rate. Anyway 2022 is too far away for my consideration now.
Dividend is clearing getting lower.
FY13 - 8.93cts
FY14 - 8.25cts
FY15 - 8.25cts
FY16 - 6.5-7cts (guided)
And I notice price trade about 10% yield. So in the end, he dividend received might not cover capital losses. And if you are thinking " long term" , you are looking at 10 years from now to cover your inestment which is 2026 and beyond that 2022. Can APTT survive till then? Still run a risk of losses in the end.
debt level never change much isint a good thing.. but anyway, peers like singtel/M1/starhub also got the same problem of having huge non current borrowings.. they are also working for the banks forever and probably dont have the intend to cut down on the debt on long term perspective.. but the difference is that this counter seems to award more dividend per share than the earnings per share they have, which makes one wonder if this dividend is going to be sustainable in the long run
Their debt level has not changed much from 2015. InmyTaiwan dollar terms it has increased slightly but in Sing dollar terms it has decreased slightly. This is due to exchange rate. Anyway 2022 is too far away for my consideration now.
yea, that is something i saw also, but i think probably there will be ways to handle.. as long as this counter continue to show consistent profits/revenue, and pay their interest, banks probably wont kill the chicken laying eggs for them.. this counter probably going to work for the bank for few decades/centuries (if it' s still around), and the banks will be more than willing to loan them money
Their debt level has not changed much from 2015. InmyTaiwan dollar terms it has increased slightly but in Sing dollar terms it has decreased slightly. This is due to exchange rate. Anyway 2022 is too far away for my consideration now.
yea, that is something i saw also, but i think probably there will be ways to handle.. as long as this counter continue to show consistent profits/revenue, and pay their interest, banks probably wont kill the chicken laying eggs for them.. this counter probably going to work for the bank for few decades/centuries (if it' s still around), and the banks will be more than willing to loan them money
Quick read on their Q1. Debt of over $1billion due by 2022. How will APTT deal with it. Refinance?
yea, that is something i saw also, but i think probably there will be ways to handle.. as long as this counter continue to show consistent profits/revenue, and pay their interest, banks probably wont kill the chicken laying eggs for them.. this counter probably going to work for the bank for few decades/centuries (if it' s still around), and the banks will be more than willing to loan them money
Quick read on their Q1. Debt of over $1billion due by 2022. How will APTT deal with it. Refinance?
The debt is governed by SGX rules forTrusts. Quoting absolute figures can be misleading. I' m sure Temasek is aware of its debt but choose to increase its holdings of APTT to 8%. Most reits and trusts, by the nature of their business, must have significant borrowings - otherwise they are not using their capital efficiently. DYODD
how is debt different for trusts? they still need to pay the money, and need to pay interest at the end of the day.. when i see so big debt, to me, it' s like they are working for the bank.. they need to pay about 50mil of interest every year.. their net profit after everything is about 45mil for the latest full year result, eps about 3cents.. year to date p/e think about 12.7 p/e based on sgx info.. dividend pay about 8 cents per share which looks attractive, but they generating less than 8 cents profit.. how can they sustain this payout, unless their profit increases in the coming few quarters.. dont assume everything is rosy just ' cos temasek is inside.. but unfortunately though, ppl perceive counters back by ah gong as good counters.. the price probably wouldnt be that well supported if ah gong is not inside.. anyway, whatever we say about a counter, in the end share price depends on BB.. a perceived bad counter is still a gem if majority of the market movers perceive it as a gem..
The debt is governed by SGX rules forTrusts. Quoting absolute figures can be misleading. I' m sure Temasek is aware of its debt but choose to increase its holdings of APTT to 8%. Most reits and trusts, by the nature of their business, must have significant borrowings - otherwise they are not using their capital efficiently. DYODD
Dont just look at the dividend.. look at the debt behind.. 1billion+ debt with 50mil cash.. at the rate it is giving dividend, dunno how many centuries literally for it to clear debt.. think temasek is shareholder though.. wonder why it vested in this
Quick read on their Q1. Debt of over $1billion due by 2022. How will APTT deal with it. Refinance?
The debt is governed by SGX rules forTrusts. Quoting absolute figures can be misleading. I' m sure Temasek is aware of its debt but choose to increase its holdings of APTT to 8%. Most reits and trusts, by the nature of their business, must have significant borrowings - otherwise they are not using their capital efficiently. DYODD
Dont just look at the dividend.. look at the debt behind.. 1billion+ debt with 50mil cash.. at the rate it is giving dividend, dunno how many centuries literally for it to clear debt.. think temasek is shareholder though.. wonder why it vested in this
WITH TEMASEK HOLDING BACKING ... MONEY IS NOT AN ISSUE WITH THIS TRUST
EXPANSION AND FURTHER ASSET ACQUISITION IS MUCH EASIER
The debt is governed by SGX rules forTrusts. Quoting absolute figures can be misleading. I' m sure Temasek is aware of its debt but choose to increase its holdings of APTT to 8%. Most reits and trusts, by the nature of their business, must have significant borrowings - otherwise they are not using their capital efficiently. DYODD
Dont just look at the dividend.. look at the debt behind.. 1billion+ debt with 50mil cash.. at the rate it is giving dividend, dunno how many centuries literally for it to clear debt.. think temasek is shareholder though.. wonder why it vested in this
Today this counter is down leh.
I hv vested... so DANGER, pls help to continue to shout up the price hor
