Other investment is a creative accounting tool.... Use mostly by construction company.... For ehemmm you know whatlah ( cannot elaborate) . astino has a division involved in chicken farm construction...
Please excuse me for being ignorant. To me it remains unexplained.
What were or would had been the accounting entries for this 'other investments' - the conventional accounting entries. Debit ??? and Credited 'Bank' - as reflected in the 'Cash Flow Statement'.
Besides what would be the 'return on other investment' and bearing in mind that the Group had a huge 'loans and borrowings' of sum RM118 million (as at 31 Oct 2015), I am also curious to know what was the corresponding debit accounting entry or entries for these 'other investments' and how would it be shown in the 'Balance Sheet'?
For Sam Chong, Astino bought over 20.9 millions of Plant, Property and equipment (ppe) during the latest quarter, and recorded as "other investment" in the cash flow statement.
To avoid confusion, the Board should have stated the expenditure as 'acquisition of property, plant & equipment' in the cash flow statement instead of worded the same as 'other investment'.
Hopefully, the calculation of depreciation charges for the quarter was true and fair. Otherwise, the bottom line would have been erroneously stated.
1.95 sen dividend is forthcoming. Almost same line of business with Ajiya, except Glass production, how come Astino cannot perform as good as Ajiya? I am still puzzling as to why such a big gap in market price!
Yeoman of Singapore investment fund has acquired 3,700,000 shares (or 1.35%) of Astino Bhd as per 31/7/2015 annual report. Why do think Yeoman want to buy this counter? For profit making. Yeoman Fund has been well-known for getting good returns for investors and as such this Fund must have done a lot of research before committing to buy. Furthermore, the bulk of Astino list of properties has not been revalue to market price; and most of them are located at Penang/Seberang Prai at 2008-2010 valuation.
Why buy back share if company future prospect not good? something wrong. And he said oversea market on demand. Maybe they want to collect as much share can. Or whats?
The volumn traded this morning already exceeded last Thursday's volumn. Fundamentally this counter is trading at a forecast PE of 6.95. It has as asset backing of 1.08 and resume dividend distribution last year. The profit for the last three quarters were $21.9m compared to $19.8m last year, $2.1m favourable against same period last year. The margin appears to be increasing. I expect this counter to be upgraded to a PE of 11 ie TP of $1.21 in a very near future especially if the Q4 EPS is above 3..5c.
Astino 4th quarter results just released earning 3 cents making a total of 11 eps for the whole year. PE is less than 10. Market response with 2 cents up
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Posted by ckwan11d > 2015-12-03 18:38 | Report Abuse
Thank you Sam Chong.