http://www.pldt.com/docs/default-source/presentations/2019/9m2019-presentation_final.pdf?sfvrsn=0
Share price keep tanking despite profitability. Market cap of ~4.5 B vs net debt of 2.9B. Debt is equally space out yearly with ~10% matured every year. Cash balance is 0.5B vs gross debt of 3.5B.
Interest payment is ~170MM annually based on 4.8% average interest rate. Net debt/ EBITDA is 2x indicating EBIDTA is 1.45B and interest coverage of 8.5x which is healthy.
The debt covenant of Net debt/Ebidta is 3x which will be raised to 4x after company seek for waiver for future debt raised for CAPEX spending. Currently, there is a big margin to hit the limit.
Debt/Equity is high and > 1. Company bonds is currently investment grade.
Dividend yield is 6.9% based on morningstar quote indicating 300MM of dividend payment with market cap of 4.5B.
2019 CAPEX is 78B peso which is 1.6B USD which is higher than is EBIDTA. Based on 2011-2019, total CAPEX spent is 369B peso which is 7.4B and roughly 0.9B per year.
Assuming the same level of CAPEX spending going forward and an annual EBIDTA of 1.45B, Free cash flow is 0.55B and minus off interest expense, there is ~400MM available for dividend payout.
If the CAPEX investment leads to higher EBIDTA generation (high margin of ~50%), we can expect the dividend to be sustained or increased in future. current yield looks attractive based on the growth rate and PE ratio of 12x and Market cap/EBIDTA of 3-4x is not compelling.
Annual debt maturity is ~400MM. Company need to maintain the debt level or payoff with increase EBIDTA from its CAPEX.
Monday, December 9, 2019
Wednesday, December 4, 2019
Capitaland C31.SI Review
https://links.sgx.com/FileOpen/CL%20Investor%20Day%202019.ashx?App=Announcement&FileID=587892
Link to Capitaland 2019 investor day. Shows company long term planning and fact book of its business. No longer a property development but mainly as a fund manager managing private funds or REITS. Generate recurring income which is the main income contributor. Top 10 real estate manager globally with Blackstone at the TOP.
With the merger with Ascendas, Capitaland has grown in scale and harder to fail if properly managed. Currently integrating both business together to achieve the forecast synergy. This explains the merger between Ascott REIT and Ascendas hospitality trust to become a large hospitality trust which will be included in a REIT index and potential for trading at higher multiples.
With its REITs vehicle, its a good avenue for divesting its properties for gains. Debt/equity is ~0.7 which is acceptable.
https://investor.capitaland.com/newsroom/20191105_070643_C31_GDOVJM12R2G5FJSU.2.pdf
3rdQ 2019 financial results
Profit from operation = 941M vs finance cost of 234M. Coverage is 4x. Net profit is 527MM. Coverage is 2.2x.
Coverage ratio is typical for a REIT though the dividend yield is much lower but has much diversified holdings in different sectors and geographical area.
Cash in hand is 5.6B vs short term debt of 5.5B and long term debt of 27B.
Investment properties is 48B and investment/JV is 13B while development properties for sale is 7.7B
Equity is 39B. Company is not leveraged compared to Fraser properties.
Exposure to China is large at around 30-40%. Singapore is another 30%. REmaining is Europe and other developing countries. Good entry point if its stock price tank to ~$3 which is its long term average.
Link to Capitaland 2019 investor day. Shows company long term planning and fact book of its business. No longer a property development but mainly as a fund manager managing private funds or REITS. Generate recurring income which is the main income contributor. Top 10 real estate manager globally with Blackstone at the TOP.
With the merger with Ascendas, Capitaland has grown in scale and harder to fail if properly managed. Currently integrating both business together to achieve the forecast synergy. This explains the merger between Ascott REIT and Ascendas hospitality trust to become a large hospitality trust which will be included in a REIT index and potential for trading at higher multiples.
With its REITs vehicle, its a good avenue for divesting its properties for gains. Debt/equity is ~0.7 which is acceptable.
https://investor.capitaland.com/newsroom/20191105_070643_C31_GDOVJM12R2G5FJSU.2.pdf
3rdQ 2019 financial results
Profit from operation = 941M vs finance cost of 234M. Coverage is 4x. Net profit is 527MM. Coverage is 2.2x.
Coverage ratio is typical for a REIT though the dividend yield is much lower but has much diversified holdings in different sectors and geographical area.
Cash in hand is 5.6B vs short term debt of 5.5B and long term debt of 27B.
Investment properties is 48B and investment/JV is 13B while development properties for sale is 7.7B
Equity is 39B. Company is not leveraged compared to Fraser properties.
Exposure to China is large at around 30-40%. Singapore is another 30%. REmaining is Europe and other developing countries. Good entry point if its stock price tank to ~$3 which is its long term average.
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