In my previous post here, we discussed about HL Global Enterprises' relatively complicated disposal of LKN Investment International Pte Ltd (LKNII) and some salient features about why the shares of the company were worth a bet. Looks like most (if not all) of the points covered went through nicely and things are indeed looking very well for them.
In Summary:
1. Disposal of LKNII and CHQ is completed and the >S$100M proceeds are already received.
2. Part of the proceeds are used to pay off the Venture Lewis loan in full.
3. HL Global Enterprises' future earnings will be relieved of the heavy interest expense as a result of payment of the loan and we should reasonably expect positive earnings going forward.
4. The free cash flows of the group remains positive as usual.
5. The group has applied for removal from the SGX-ST watchlist and they had undertaken to provide a reasonable exit offer for minority shareholders should SGX-ST somehow rejects the application (in my opinion, this scenario is unlikely).
6. A 3-cents dividend is declared, giving a yield of 6.4% on current price of 46.5-cents. This is the first dividend declared since probably >10 years ago.
7. The group is reviewing the proposed development of their Melaka property as well as sourcing for sustainable and viable businesses with the huge excess cash that remains even after the payment of the 3-cents dividend.
8. There are some changes to the Board.
HL Global Enterprises has essentially gone from net debt to net cash of about 60-cents per share. Book value also went from negative to about +84-cents per share (higher than my previous estimate of 75-cents per share). As mentioned previously, even after this disposal the group still have various profitable operations, investments and properties. At just 46.5-cents today and considering that much of the uncertainty related to the disposal removed, HL Global Enterprises is still significantly undervalued and definitely worth a bet.
Disclosure:
Long HL Global Enterprises (AVX.SI) since Jul '17
My dad has held this counter for many years. Glad to see some improvements in the company's fundamentals.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteAccording to page 107(segment results) of the annual report, earnings would be approximately -500k for the next year(assuming it remains unchanged) after removing the one off "other income" of 87mil -> meaning this firm will continue to be loss making even after the disposal of the subsidiary?
ReplyDeletewithout the interest expense of 600-700k after paying majority of the debt down, it should at best break even or have around 100k-200k net profits for the next year? This is assuming the hospitality operations doesnt deteriorate any further like what management had stated this year - with the oversupply of hotel rooms at cameron highlands
DeletePermit me to introduce you to LE-MERIDIAN FUNDING SERVICES. We are directly into pure loan and project(s) financing in terms of investment. We provide financing solutions to private/companies seeking access to funds in the capital markets i.e. oil and gas, real estate, renewable energy, Pharmaceuticals, Health Care, transportation, construction, hotels and etc. We can finance up to the amount of $900,000,000.000 (Nine Hundred Million Dollars) in any region of the world as long as our 1.9% ROI can be guaranteed on the projects.
ReplyDeleteLe-Meridian Funding Service.
(60 Piccadilly, Mayfair, London W1J 0BH, UK) Email Contact Info...lfdsloans@lemeridianfds.com
PLEASE READ!!Hello Guys!!! I am Caro I live in Ohio USA I’m 32 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com
ReplyDeleteHello everyone, I'm Patricia Sherman in Oklahoma USA right now. I would like to share with you my experience of borrowing USD $185,000.00 to clear my bank draft and start a new business. It all started when I lost my house and I took my stuff because of the bank policy and I met some bills and some personal needs. So I became very desperate and started looking for funds in every way. Fortunately for me, a friend of mine, Linda told me about a credit company firm, I was intrigued by the fraud, but I was intrigued by my situation and had no choice but to get advice from my friend about this company. contacting them really doubted me because of my past experience with online lenders, did you know that little? '' Elegantloanfirm@hotmail.com This company has been very helpful to me and my colleague and today, thanks to this credit company, the proud owner of well-organized work and responsibilities, they smiled back at me. So if you really need to grow or start your own business, or if you really need to borrow money in any financial hardship, we recommend you find a financial development opportunity in your business today. {E-mail:} Elegantloanfirm@hotmail.com ... online for credit not a victim of scam. Thank you.
ReplyDeleteDO YOU NEED A LOAN : TRUST ME WE CAN SOLVE YOUR FINANCE PROBLEM
ReplyDeleteDo you need Personal Loan?
Business Cash Loan?
Unsecured Loan
Fast and Simple Loan?
Quick Application Process?
Approvals within 24-72 Hours?
No Hidden Fees Loan?
Funding in less than 1 Week?
Get unsecured working capital?
Contact Us At : urbansuccessfundings@gmail.com
LOAN SERVICES AVAILABLE INCLUDE:
Commercial Loans.
Personal Loans.
Business Loans.
Investments Loans.
Development Loans.
Acquisition Loans .
Construction loans.
Credit Card Clearance Loan
Debt Consolidation Loan
Business Loans And many More Loan Opportunity:
LOAN APPLICATION FORM:
=================
Full Name:................
Loan Amount Needed:.
Purpose of loan:.......
Loan Duration:..
Gender:.............
Marital status:....
Location:..........
Home Address:..
City:............
Country:......
Phone:..........
Mobile / Cell:....
Occupation:......
Monthly Income:....
Contact Us At urbansuccessfundings@gmail.com
Phone number : +919069983539 (Whatsapp Only)
Hi everyone, I am Adorjan Adelmo from Yasinya village Ukraine and I just want to say a very resounding thanks to Pedro Financial loan services for their sincerity, Openness, Transparency, Truthfulness, Love and support during and after getting loan funds from them. I have been through a lot in the hands of in life and time won’t permit me to say all that I went through in the year of pandemic but God answered my prayers through the support and love from pedro Financial loan services who embraced me and understood me despite my initial doubt and unseriousness and with his good heart and love I am now a home owner through his 3% interest rate loan funds and I have vow to spread this news and also tell the world that there are still genuine and few good online loan firms out there that can assist and also revive a dry bone like I was.
ReplyDeleteDon’t fail to listen and read this testimony because this is a true life changing experience and anyone that needs this kind of turn around should not hesitate or doubt this because I have proven and I swear to God in Heaven that this story is real and also the story of my experience with them .
Contact them today for Consolidated loan, business loan, home loan, car loan, personal loan.
Email: pedroloanss@gmail.com
This comment has been removed by the author.
ReplyDelete