you are stupid enough is it, this is q1 MARCH 2015! NOT 2016! NOW IS NOT EVEN 31 MARCH 2016, JOKERSS, company purposely release old results to con you in
(I) PROPOSED SHARE SPLIT INVOLVING THE SUBDIVISION OF EVERY ONE (1) EXISTING ORDINARY SHARE OF RM0.50 EACH IN SIGNATURE INTERNATIONAL BERHAD (SIGN) INTO TWO (2) ORDINARY SHARES OF RM0.25 EACH IN SIGN ("SUBDIVIDED SHARE(S)" OR "SHARE(S)") HELD BY THE SHAREHOLDERS OF SIGN WHOSE NAMES APPEAR ON THE RECORD OF
As at Dec-15, Signature had net cash of RM6.3mn, comprising cash and shortterm investment of total RM29.5mn and debts of total RM23.2mn. With the cash compensation of RM80mn or 67sen/share (or 33sen based on outstanding shares after the proposed share-split), Signature will have too much “idle cash” which we think can be paid out as special dividend.
Assuming Signature would utilise RM15mn from the compensation for the construction of new warehouse, RM3mn for debt repayment which drawdown for the purchase of factory in Kapar, Klang, and RM5mn for relocation expenses, Signature will end up with a balance compensation of RM57mn or 47.5sen/share. This would yield more than 20% if Signature were to pay out the entire balance compensation as dividend in FY16.
We believe the management.will utilize the proceeds for both share buy-buck and special dividend.
Valuation We roll forward our valuation base year to CY17. Based on unchanged PE of 10x, we raise our target price for Signature to RM3.24 (ex-split price RM1.62). Maintain Buy on Signature for the potential special dividend.
if you compare using short term of RM29.5m , that should take note that out of the total debts of RM23m, there are only RM3m is short term debt, the rest is long term debt. So for financial health they are extremely healthy with strong cash position, that not taking into account for RM80mil from land sales.
So what you gonna do with RM110m CASH? before the year end tax credit...
Share split will improve share liquidity, which is good for stock. although the price will be adjusted, investors will get more shares after the split.
for current share price $2.15, the PE for Sign is 9.27 , compare market average PE for consumer product in klse is now 19.52. Do a little calculation you shall see the value for Signature shall be $4.53 following this valuation.
We refer to the Circular dated 15 March 2016 and the previous announcements in relation to the Corporate Exercises.
On behalf of the Board, RHB Investment Bank wishes to announce the following:-
the Deed Poll has been duly executed on 6 April 2016; the exercise price of the Warrants has been fixed at RM0.97 per Warrant; and the Entitlement Date for the Share Split and Bonus Issue of Warrants have been fixed as at the close of business at 5.00 p.m. on 20 April 2016. The exercise price of the Warrants represents a discount of RM0.10 or approximately 9.4% over the theoretical ex-split price of the Subdivided Shares of approximately RM1.07 based on the five (5)-day VWAMP of SIGN Shares up to and including 5 April 2016 of approximately RM2.15.
The exercise price of the Warrants was determined by the Board after taking into consideration, amongst others, the following:-
the theoretical ex-split price of the Subdivided Shares based on the five (5)-day VWAMP of SIGN Shares up to and including 5 April 2016, being the last Market Day preceding the price-fixing date for the Warrants; and a discount of approximately 9.4% that is deemed appropriate by the Board after taking into consideration, the market demand for SIGN Shares, the historical price movement of SIGN Shares and the potential future earnings of SIGN Group.
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....
travoltakeong
1,502 posts
Posted by travoltakeong > 2016-03-25 15:26 | Report Abuse
beautiful numbers.....
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5040045