The company just acquired the remaining 35% stake in Embrace Industries for RM12.2 million. With this, the company will consolidate all revenue and profit in Embrace Industries.
Bro, the Company has already consolidated all revenue and profit as Embrace Industries its their subsidiaries. Acquiring the remaining 35% stake means nothing to the income statement. The benefit is only on the cash flows as the Company would be able to utilise Embrace Industries's cash flow (if any). Please refer to IFRS accounting standard for my reasons above.
so all profits will belong to owners of the company... no more "non-controlling interest". in other words, shareholders get to have bigger share of the company earnings. As for valuation wise, its better to buy a good company at a fair price, than to buy a rotten company at a cheap price.
Mimority interest consolidation will boost eps by about 20pc based on 2014 annual result. The acquisition cost of 12m is cheap based on 2014 minority interest earnings of 4 mil thos works out to PE of 3x only. Good shareholder enhancing action
My mistake, overlooked the non-controlling interest profit. This means that EPS will increase to reflect MI portion. And yes, I agreed the acquisition of Embrace is done at cheap price.
yes go go go. on the other side, hevea looks tempting as well. pohuat damn useless even price is high. latitude unless they do a share split, sentimental remains week
Looks like ppl pushing price down before good news out... this is so called chicken play. Long term holders already used to it. newbies will surely get chicken out. Remember what happen few months ago?
I agree with Dorrencheeling..a lot ppl sold and would buy back at lower price.. I think bonus share announcement is either this Friday or next week and by mid july will receive..
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
chl1989
2,552 posts
Posted by chl1989 > 2015-05-26 11:46 | Report Abuse
Where is 1.1? Lol