Quick review of CMPH and Venture Q4 results

will be done using the same format as the previous post. No flooding of numbers.

1) CMPH

Hope to see:

a) 3.5 cents dividends maintained 

b) OCF of 1.8 - 2 billion HKD

c) Stable operating numbers for it roads, especially YTW

In reality:

YTW continue to do well but it's JVs are not doing so well. 3.5 cents dividends are  maintained but OCF is only 1.5 billion. 

Guixing and Guiyang are profitable and NP improving from previous management 

JiuRui operating numbers is still bad.

Management outlook is challenging and will have an impact on tolls and revenue due to lower economic activities. 

Management also announced scrip dividends scheme which will save the company cash of the owner opted for it but will end up diluting the stakes of Miniority shareholders.

Action:

Hold, will sell into strength if Mr Market likes the results which is highly unlikely. With the absence of anymore growth drivers to provide buffers, and general market sentiments, chances are this will be a panadol type of investment. 

2) Venture:

Hope to see:

a) continuous recovery in earnings

b) dividend of 50 cents maintained 

c) Better margin and FCF

In Reality:

I got what I wanted. NP and FCF now cover more than dividends payout with the balance sheet improving. 

Action: Hold