Somebody will take this company over from existing major shareholder if not careful because the value of this company is definitely a lot higher say above 75 to 99 sen. At the current price of say 45 sen plus dividend of 20 sen, won't you take it over from the existing owner (as your cost of taking over the company is actually 25 sen)? Any comments?
For pelikan if the company able to grow the sales mainly for Asia than is good. Anyway cashflow from operating activities is positive. Hopefully with the light asset there can perform and also the earning is mainly from Europe area so rely less on domestically earning.
Pelikan is actually a company with a strong moat by way of their recognised brand name, but so far had been weighed down by huge debt, bad working capital, management and cash flow and low profitability. The Pelikan Group is supported directly via its 4 principal manufacturing facilities located in Colombia, Germany, Mexico and Poland. PELIKAN's main market is Germany which accounted for 61.6% of overall sales in 1Q21. This is followed by the Rest of Europe (20.5%), Americas (13.1%) and Rest of the World (4.8%). PELIKAN distributes its products through its 21 sales offices stretching over 3 continents. An investee company Ikhlas Capital had invested in the company back in end 2019. Nazir & his PE fund Ikhlas had came in and seems to be planting seeds to try and turn around this company. On 7.7.21, Pelikan Group GmbH (PGG), a 98.64% subsidiary of PELIKAN, entered into a conditional sale and purchase agreement (SPA) with HE4 Falkensee 1 S.à r.l. and HE4 Falkensee 2 S.à r.l. (collectively, the “Purchasers”), to dispose of its logistics centre located at Straße der Einheit 142-148, 14621 Falkensee, Germany (Property) for a cash consideration of EUR81.0m. The Property comprises a piece of freehold land and all the buildings erected thereon located in the commercial area of Falkensee, Germany. The Property is currently occupied by PGG and its subsidiaries (PGG Group). Upon the completion of the disposal of the Property, PELIKAN is expected to realise an estimated one-off gain of RM184.83m. The disposal proceed will be mainly used for working capital requirements (RM162m earmarked), rewarding the shareholders through special cash distribution of 20.0 sen upon the completion of the proposed disposal., partial repayment of its bank borrowings (RM 200m earmarked), all to enhance overall profitability and lowering its financing cost (currently at RM8m p.a.) Currently at RM0.43 the Market cap of PELIKAN right now is RM261.50m. The proceed from the sale is way above its current market cap. The sale of a valuable asset to unlock value looks to me like a good first attempt to do this. Our EPS forecast for FY21 excluded the exceptional gain from the proposed disposal of its German logistics centre. DPS for CY21 is projected at 20.00 sen nett (assuming the proposed special DPS is declared before the end of CY21). Post proposed disposal, net asset per share will improved from 0.76 to 1.06 and gearing from 0.86 to 0.31 How much should this share be worth now is up to anyone's guess, but from this deal, we can see that the company's current valuation is much much below their book value.
dividend are 2 cent, not 20cents. EUR81.0m= Rm 400m+- partial repayment of its bank borrowings (RM 200m earmarked) working capital requirements (RM162m balance for dividend for 2 cent!
20 cents dividend if i enter at this price 0.43 with RM 4.3k capital i can get RM 2k dividend right. even the price drop to 0.3 later i still in the money. good bargain?
Look at the company announcement at Bursa made by Pelikan. The company already said 20 c per share but still have person try to confuse investor. Really weird on their intention.
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Investing_Bursa
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Posted by Investing_Bursa > 2021-07-28 16:30 | Report Abuse
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