To put it bluntly, I suspect the primary production business is not doing well this year and it is better off with half of the subsidiary sold. But I observed that other than the selling price, the listco is going to receive cash because QAF provided shareholders loan to the sub.
Using last year’s EPS as an illustration may not be representative, because it was boosted by one-off divestment gains. Underlying EPS would be closer to 10 cents.
And I agree with point 4, that listing without much of a premium over book value doesn’t really have a purpose.
To put it bluntly, I suspect the primary production business is not doing well this year and it is better off with half of the subsidiary sold. But I observed that other than the selling price, the listco is going to receive cash because QAF provided shareholders loan to the sub.
http://infopub.sgx.com/FileOpen/QAF_2Q2017...
(edited) EPS 0.039 for 1HFY2017; assuming FY2017 = 0.078 -> 15.9x P/E ratio. Still okay...
Will sit on the sidelines for this...
Reply to @AlpacaInvestments : lol.. got it wrong ah? sorry
Using last year’s EPS as an illustration may not be representative, because it was boosted by one-off divestment gains. Underlying EPS would be closer to 10 cents.
And I agree with point 4, that listing without much of a premium over book value doesn’t really have a purpose.