Saw an opportunity after their earning report, so jump in before any recovery and now I'm just waiting for dividend payment.
After the earning report, share price dropped from $0.77 to $0.695 that as much as 10% drop. Such sell off is probably people in panic mode after seeing a huge loss due to unusual repayment of membership deposit.
Summary of their Q2 result.
- Disappointing 2QFY18 results as it swung into distributable loss of ¥323m (2QFY17: ¥497m income) on an unusual large repayment of membership deposit and payment of upfront borrowing fee.
- 1HFY18 distributable income to ¥1.47b (-27.3%) and reduced semi-annual DPS to 1.65¢ (-32.7%).
- For 2Q, revenue edged up 3.1% to ¥13.38b on a 4.8% increase in visitors.
- Operating margin widened 1.4ppt to 18.3%, attributable to higher course utilisation rate of 80.4% (+3.2ppt).
- Loan-to-value ratio ticked 0.3ppt lower q/q to 28.7%.
- Trades at 4.3% annualised 1HFY18 yield and 0.84x P/B.
So I swing around to look at their fundamentals and seems to be solid. I think this is very likely a one off event. Operating profit in fact has increased. NAV is at $0.90 with my purchase price at $0.705 it's a discount. Yield wise, if we looked at DPU this year which is $0.0359 and $0.0165 which will give us 7.4%. It is not 8% but we should see better results next year.
Glad I've jumped into this but will keep a close eye on their next results.
Post a Comment